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The scariest part is the idea that these chips might someday include GPS receivers, which would enable them to record everywhere you have gone. It would be natural to issue every cop a machine to read out the record of your movements, probably without even telling you. It will make your life an open book, as bad as carrying a cell phone.
Speaking of which, millions of new GM cars have GPS and cell phones built in. The specific purpose is for a monthly-fee service which lets you find out where your car is. If you don't pay for the service, GM won't let you access that information--but GM, the police, or any cracker who figures out how to access GM's computers, can probably still follow you all the time. If your car has this "feature", make sure the GPS and cell phone are electrically disconnected and not receiving power. Then they really can't be used to track you.
Nowadays, just because you're paranoid doesn't mean you aren't really under surveillance.
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