NSA Spying Blowback Continues - Boeing Loses Brazil Jet Order

Tyler Durden's picture

First CSCO cited Government (NSA)-related cuts for its dismal results and now Boeing, considered the front-runner, has lost a $4.5 billion contract to provide jets to Brazil because, as officials exclaimed, "the NSA problem ruined it for the Americans." Sweden's Saab won the contract instead for 36 new fighters to be delivered by 2020. As Reuters reports, one U.S. source close to the negotiations said that whatever intelligence the spying had delivered for the American government was unlikely to outweigh the commercial cost of the revelations. "Was that worth 4 billion dollars?" the source asked.


Via Reuters,

Brazil awarded a $4.5 billion contract to Saab AB on Wednesday to replace its aging fleet of fighter jets, a surprise coup for the Swedish company after news of U.S. spying on Brazilians helped derail Boeing's chances for the deal.




Aside from the cost of the jets themselves, the agreement is expected to generate billions of additional dollars in future supply and service contracts.




The timing of the announcement, after more than a decade of off-and-on negotiations, appeared to catch the companies involved by surprise.




Until earlier this year, Boeing's F/A-18 Super Hornet had been considered the front runner. But revelations of spying by the U.S. National Security Agency in Brazil, including personal communication by Rousseff, led Brazil to believe it could not trust a U.S. company.


"The NSA problem ruined it for the Americans," a Brazilian government source said on condition of anonymity.


A U.S. source close to the negotiations said that whatever intelligence the spying had delivered for the American government was unlikely to outweigh the commercial cost of the revelations.


"Was that worth 4 billion dollars?" the source asked.




"We are a peaceful country, but we won't be defenseless," Rousseff said on Wednesday at a lunch with senior officials from Brazil's military, where she said the announcement was forthcoming. "A country the size of Brazil must always be ready to protect its citizens, patrimony and sovereignty."


It seems the NSA Spying blowback is just beginning...

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SgtShaftoe's picture

US Defense contractors,and NSA,

Fuck you you treasonous motherfuckers!!!  I hope you all are tried and prosecuted for treason and crimes against humanity. 

At minimum, none of you should be hired for a job beyond scooping pig shit for the rest of your lives. 

Renewable Life's picture

4 billion, shit that will be just a drop in the bucket by the time this plays all the way out!!!
The EU, lead by Germany, will at some point probably stop trading with US entirely!! Who needs friends like the US, when you can get everything you need from China, Russia, Brazil, and India!!
It may take another 5-8 years, but the quiet boycott of America has begun and will continue, until one day we all wake up, and were Iran!

Gene Parmesan's picture

It's still less than 2 days' worth of post-taper QE.

ParkAveFlasher's picture

...and Boeing is, thus, yet another new mouth for the Fed to feed with ... uh ... post-taper QE.


TerminalDebt's picture

Governments don't give a shit about commercial contracts, as long as you pay your taxes and are not planning to overthrow them. They need to be sure of this, hence more spying.


Magnix's picture

How about spreading the words to millions of Americans to get the hell outta America soil and the govt will not be able to revenue taxes from us.

jbvtme's picture

anything to do with the success of the dream liner?

gmrpeabody's picture

Brazil and air force in the same sentence..., it just doesn't sound right.

JohnnyBlaze's picture

4 billion.  Oh my fucking god.  They taught Obama, Ben, and Jamie a real fucking lesson.


Ben prints that about every 1.5 days. 



layman_please's picture

nice twist indeed. sweden is the main partner of NSA in baltic region as the telecommunication cables at the bottom of the baltic sea run through The Swedish National Defence Radio Establishment (FRA) and the program has a codename SARDINE. all the traffic from baltic states, from russian government and from russian private companies is filtered by FRA and then shared with NSA and british GCHQ because swedish government/FRA are nothing else than national level subcontractor to US and GB.

even more interesting is that saab chairman is marcus wallenberg. wallenbergs to sweden are even worse than rockefellers are to usa and redshields are to europe.

from wiki: The Wallenberg sphere, an international banking- and industry group under the control of Wallenberg family through the holding company Investor AB, based in Stockholm, Sweden, is today Europe's largest family-controlled business empire. In Sweden alone, the sphere was estimated to indirectly control about a third of the national GDP in 1990.


NotApplicable's picture

My first thought was wondering who has compromised SAAB.

Given the length of time the world has been ruled by central banks, I can't imagine there's any manufacturer not thoroughly invaded by some intelligence service, or purchased/founded by some club member.

layman_please's picture

moreover, central banks are often owned by banks who are owned by selected families. it's really a closed circle.

i haven't had time to thouroughly go into wallenbergs but quick search online shows quite a familiar story.

"In Sweden, characterized any discussion about the family of unquestioning admiration. The few who dared to critically examine the family are gently but firmly off the track. See, eg, the former longtime Express - journalist Ulf Nilson, who found it impossible to get his book about the secret collaboration between the Wallenberg family and the Social Democratic Party published in Sweden.

"In the disputes that have arisen in the wake of North's and FBI's illegal, secret recording in the summer of 1989 by the undersigned who allegedly present serious criminals, we have found out that it is if anything more difficult to get an action pending in the courts against SE-Banken than against Nordbanken . If no target is directly dismissed on the grounds that because the documents are missing landscape year after year and nothing happens. Why? Who are they who have such enormous power over the Swedish legal system?

It relocated to Brussels Göteborg Tryggve Charles Stone, who has a number of disputes in the Swedish courts with a number of banks as counterparties, said in a newspaper interview in the GP on how the SE bank's general counsel took him aside when he sued the banks, and said:

''You should know that our banks own the courts and the newspapers in this country. We will crush you like a little louse.'' (Note 352)"


ThirdWorldDude's picture

+ 4 billion for your insight.


layman_please wrote: "i haven't had time to thouroughly go into wallenbergs..."


You can start here: https://en.wikipedia.org/wiki/List_of_Bilderberg_participants#Sweden_2

Note that both Jacob Wallenberg (Chairman of Investor AB) and Börje Ekholm (President & CEO of Investor AB) were present at Bilderberg 2013.

gallistic's picture

Not once do you say his name.

You are a fucking egotistical ingrate who can play smart at the expense of a better man than you who brought you this information. 

Not once!

C'mon Sardine, you can do better than that.

Say his name, bitch!

layman_please's picture

i'm not taking any credit here and i have provided a link to the source which should be obvious. instead of littering the board with personal insults you could have done us all a favor and included the name yourself but you chose to go ad hominem which i guess makes you feel a better man in your own mind.

gallistic's picture

Nah man, I was trying to get a rise out of you and I went overboard- I apologize.

You still haven't said his name....  ;)

layman_please's picture

and i thought i hit a nerv. d'oh!

his name is Ulf Nilsson. his name is Ulf Nilsson. his name is Ulf Nilsson. 

cheers mate!

gallistic's picture

Thank you! Right you are...


In 2011, WikiLeaks revealed US diplomatic cables, which said that FRA was able to monitor some 80 percent of Russia’s internet traffic, which passed through Sweden, and that the country had adopted a new wiretapping law to allow such actions due to Washington pressure.

The man the who (among many other things) exposed this FRA-NSA boondoggle- Julian Assange


The man who (among many other things) demonstrated proof of it- Edward Snowden


I raise my glass and toast to all of them, and all like them- by name.

I am grateful to them, and many others, as should be most freedom-loving human beings. They have truly opened the world's eyes to what is going on.

Cheers indeed!



layman_please's picture

second that, gallistic! as we have only seen 1% of the rabbit hole, there's still lot to come. fortunately!

25or6to4's picture

As you correctly point out the Swedish government is ass deep in with the NSA and is concidered to be the most important partner outside of the English speaking countries Thishas been the case since the cold war despite her declared neutrality.

layman_please's picture

no doubt. if somebody is really into conspiracy theories then swedish government actions before and after cruise ferry Estonia disaster in 1994, where 852 people lost their lives, provide enough controversy. 

"The Estonia ferry had been the object of bomb threats and had participated in at least two terror bomb exercises in 1994, one in February and another just the day before it sank."

"On February 2, 1994, Estonia was the subject of a major mock bomb exercise conducted with RITS, Sweden's maritime fire and rescue agency, and the Stockholm police."

"Although it is seldom mentioned, the Estonia catastrophe occurred on the first day of a 10-day NATO naval exercise called Cooperative Venture 94, in which more than fifteen ships and "a number of maritime aircraft" were prepared to conduct "humanitarian and search and rescue operations" in nearby waters."


ThirdWorldDude's picture

If someone is into conspiracy theories, then one would say that Sweden is USA's 51st state. 2 facts to prove that statement:

1. Brzezinski Jr. is the current US ambassador in Stockholm;

2.  Swedish corporate media is much more interested in events (and non-events) coming out of US than in domestic or European news (pretty obvious for those who live here).

Tim_'s picture

"Raoul's [Wallenberg] grandmother's grandfather was a Jew by the name of Benedicks whom arrived to Sweden by the end of the 18th century" (Source).

Cannon Fodder's picture

I believe you are still taxed as an American citizen anywhere in the world... and with the new IRS compliance laws, no foreign bank will open an account for an American... thus the only option is to give up your citizenship.... of course then they will probably just drone strike you....

Kiwi Pete's picture

Unfortunately they will:




This onerous piece of US legislatiin is being foistered on the rest of the world by your IRS. We have to dob in all US citizens and companies and they will make sure you are paying everything Uncle Sam is due.

Nostradumbass's picture

"How about spreading the words to millions of Americans to get the hell outta America soil and the govt will not be able to revenue taxes from us."


Not true. But it IS a good start! We're considering it seriously.

The US is one of only 2 countries (methinks) whereby no matter where you live in the world, you cannot escape taxation!

Renunciation of citizenship may be the route to fully escaping though...


outamyeffinway's picture

Governments may not care but industry does. Who did kill Kennedy anyway?

Vampyroteuthis infernalis's picture

OMEW, Kennedy was a mobster's son. His dad most likely whacked many. RFK turned on the mob as Attorney General. Both brothers swam with the fishes.

Rusty Shorts's picture

Kennedy's Dad smuggled $80 million dollars worth of Canadian Whiskey across the border during the Prohibition days...as the story goes

Bananamerican's picture

"was that worth 4 billion dollars?" the source asked."

"Well, Freedom™ aint free" -the NSA

kralizec's picture

Somebody with balls would sue the US government, but Boeing will likely be rewarded with increased gubmint contracts to make up for the loss...


Citxmech's picture

Remember that story about how the NSA has been "altering" the amounts deposited in certain accounts?  My guess is that they weren't taking money away.  

Jack Burton's picture

BINGO! The US government will funnel 4 billion plus of cost plus contracts for more pentagon toys to Boeing to make up for their loss. That is a sure bet!

giggler321's picture

It's still less than 2 days' worth of post-taper QE.


Well that's an interesting point, I mean just think if they'ed of invested in the real economy and built fighter jets.  We'd have a shed load now with lots of people employed.  Déjà vu;  Which war was that?

Popo's picture

Well... All of this strikes me as deeply ironic given that he Swedish secret service is partners with the NSA and helps them 100% with data gathering. Giving the contract to Sweden is no different. There are no good-guys on the playing field.

Duke of Earl's picture

One must always choose the lesser of two weevils.

Anusocracy's picture

The Brazilians should have purchased Russian jets if they wanted to get back at the US.

holgerdanske's picture

Anything but stuff from USA will do. And this is going to spread. Talking about shooting yourself in the foot. But whatever the American government gets, they have deserved it and much more. I wish it wasen't so, but it is.

The USA kills more people every year than all terorists added together. By some accounts about 10 million people have died as a result of American involvement since the second world war.

The rest of the world have had it.

Citxmech's picture

Honestly - many of the Rooskie's fighers are probably better than anything SAAB puts out.  Certainly they are more maintenance-friendly.

gmrpeabody's picture

Not to mention the pint of vodka stashed under every seat...

zerozulu's picture

Fear of loosing the contract will keep Swede in check. No one wants to be near a crumbling skyscraper.

gallistic's picture

"All of this strikes me as deeply ironic given that he Swedish secret service is partners with the NSA and helps them 100% with data gathering. Giving the contract to Sweden is no different. There are no good-guys on the playing field."

Popo, there are many important differences which you absolutely do not grasp with your simplistic equating of the Swedes with the NSA or US.

One very important difference is that there is a technology transfer involved between SAAB and Embraer for this purchase.

There are very compelling economic reasons too, for ex.- the F-18 simply does not provide as much bang for the buck as other fighters. Its cost is disproportionate to the export version's performance. This also extends to the many subsequent years of service, maintenance and operating costs.

There are many political reasons too, for ex.- Brazil does not want to give the US direct leverage over their defense. The US is a very unreliable partner for maintaining equipment, frequently suspending service contracts, spare parts, and upgrades as blatant political leverage.

Another political reason is to send a message. Dilma Rousseff bluntly and very publicly lambasted the US government for their political, personal, and perhaps more importantly, economic espionage activities in Brazil when she spoke at the UN.

Brazil is mad enough to tell Obama to fuck off and deliberately and abruptly cancel a long-planned head of state summit. They did not even bother to play nice and make up a face-saving excuse.

Brazil is mad enough to take action, presenting a UN project with Germany to severely curtail indiscriminate US internet espionage activities and have penalties imposed. They are mad enough to host a wide ranging international summit in Sao Paulo in 2014 to address this and other issues.

So as you can see, it is not quite "the same" to purchase the next-generation Gripens from the Swedes, even if they are NSA flunkies and stooges.

TheLoveArtist's picture

All of the high tech stuff on the Saab Gripen including the Radar system etc are USA licensed and SAAB cannot transfer any of that technology.  There is nothing really that Saab can give to Brazil as far as cuting edge software and radar systems are concerned.

gallistic's picture

Interesting point- I am not by any stretch familiar with the Gripen's systems and who they are licensed to. Many of the trade publications and official pronouncements on the deal talk about the technology transfer but specific details are not available in anything I've seen.

Captain Kurtz's picture

I call bullshit.  Saab is actually trying to build a presence in the US so it can import it's military equipment to the US for major defense contracts.  Please provide sources for your ridiculous assumptions.

gallistic's picture

It does not matter a bit what you "call". What is this, grade school?

If you do not know enough to refute these simple, easily verifiable statements maybe you should not post on it.

No, I will not do your homework for you and I do not feel like giving you the answers to the test. Do your own damn work and if you learn something different, come back and discuss it.

I call "lazy" and I raise it to "uninformed".


Captain Kurtz's picture

Grade school is where they teach you the burden of proof is on the one making a claim. I know the answer already, thanks. And BtW my comment was not directed towards you so perhaps brush up on how comments work as well.

gallistic's picture

Grade school might also teach you that in any adversarial process, you cannot expect the other guy to gather facts for you, much less make your argument.

Nevertheless- point taken Captain; I could have sworn the comment was directed at me. I really do need to learn how comments and replies work.