NSA issue growing for years as a global one

Ross Anderson summarizes a meeting in Princeton where Edward Snowden was "present."

Third, the leaks give us a clear view of an intelligence analyst's workflow. She will mainly look in Xkeyscore which is the Google of 5eyes comint; it's a federated system hoovering up masses of stuff not just from 5eyes own assets but from other countries where the NSA cooperates or pays for access. Data are "ingested" into a vast rolling buffer; an analyst can run a federated search, using a selector (such as an IP address) or fingerprint (something that can be matched against the traffic). There are other such systems: "Dancing oasis" is the middle eastern version. Some xkeyscore assets are actually compromised third-party systems; there are multiple cases of rooted SMS servers that are queried in place and the results exfiltrated. Others involve vast infrastructure, like Tempora. If data in Xkeyscore are marked as of interest, they're moved to Pinwale to be memorialised for 5+ years. This is one function of the MDRs (massive data repositories, now more tactfully renamed mission data repositories) like Utah. At present storage is behind ingestion. Xkeyscore buffer times just depend on volumes and what storage they managed to install, plus what they manage to filter out.
As for crypto capabilities, a lot of stuff is decrypted automatically on ingest (e.g. using a "stolen cert," presumably a private key obtained through hacking). Else the analyst sends the ciphertext to CES and they either decrypt it or say they can't. There's no evidence of a "wow" cryptanalysis; it was key theft, or an implant, or a predicted RNG or supply-chain interference. Cryptanalysis has been seen of RC4, but not of elliptic curve crypto, and there's no sign of exploits against other commonly used algorithms. Of course, the vendors of some products have been coopted, notably skype. Homegrown crypto is routinely problematic, but properly implemented crypto keeps the agency out; gpg ciphertexts with RSA 1024 were returned as fails.
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What else might we learn from the disclosures when designing and implementing crypto? Well, read the disclosures and use your brain. Why did GCHQ bother stealing all the SIM card keys for Iceland from Gemalto, unless they have access to the local GSM radio links? Just look at the roof panels on US or UK embassies, that look like concrete but are actually transparent to RF. So when designing a protocol ask yourself whether a local listener is a serious consideration.
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On the policy front, one of the eye-openers was the scale of intelligence sharing -- it's not just 5 eyes, but 15 or 35 or even 65 once you count all the countries sharing stuff with the NSA. So how does governance work? Quite simply, the NSA doesn't care about policy. Their OGC has 100 lawyers whose job is to "enable the mission"; to figure out loopholes or new interpretations of the law that let stuff get done. How do you restrain this? Could you use courts in other countries, that have stronger human-rights law? The precedents are not encouraging. New Zealand's GCSB was sharing intel with Bangladesh agencies while the NZ government was investigating them for human-rights abuses. Ramstein in Germany is involved in all the drone killings, as fibre is needed to keep latency down low enough for remote vehicle pilots. The problem is that the intelligence agencies figure out ways to shield the authorities from culpability, and this should not happen.
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The spooks' lawyers play games saying for example that they dumped content, but if you know IP address and file size you often have it; and IP address is a good enough pseudonym for most intel / LE use. They deny that they outsource to do legal arbitrage (e.g. NSA spies on Brits and GCHQ returns the favour by spying on Americans). Are they telling the truth? In theory there will be an MOU between NSA and the partner agency stipulating respect for each others' laws, but there can be caveats, such as a classified version which says "this is not a binding legal document." The sad fact is that law and legislators are losing the capability to hold people in the intelligence world to account, and also losing the appetite for it.