In addition to damaging the reputation and moral standing of the U.S., the NSA spying scandal is damaging U.S. economic prospects by making U.S. tech companies less competitive.
Now the economic damage has spread, causing Boeing to take a big hit in losing out on a multi-billion dollar fighter jet deal with Brazil:
Brazil gives $4.5b defense contract to Saab instead of Boeing over NSA row
December 18, 2013 10:16PM ET
US spying, including on President Rousseff, derailed deal according to a government source
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.
The lament echo's recent complaints by Cisco Systems Inc, which said in November that a backlash against U.S. government spying contributed to lower demand for its products in China.
http://america.aljazeera.com/...
The evidence is mounting that the NSA's out of control spying is damaging not only the reputation of the U.S., but also it's economic prospects. Unless the Obama Administration institutes the recommendations made by the Review Group on Intelligence and Communications Technologies that was commissioned by President Obama, I don't see the bleeding stopping anytime soon.