When Bruce Schneier speaks, everybody listens. In his latest Cryptogram he effectively describes just how complicated the Chalabi betrayal has become. We might have know, they might have known, they might have known that we knew, and we might have known that they knew… and so on.
Most interesting is that the world’s secrets are being kept by private companies, like Crypto AG, and we’re relying on market forces to ensure that they produce an effective, secure product. If they’re considered suspect or compromised, they’re out of business. For all but the most powerful countries (the U.S.), this is what you rely on to ensure that your communications are secure.