The cloud's impact on security?

"Our main finding is that you don't need to panic."

Question: Cloud-based computing means data is hosted... "somewhere". It doesn't matter where, so long as it is available on demand. But, wait, what if those ethereal servers were actually physically in the US? The data within would fall into the realm of The Patriot Act, which would permit US authorities to access said data, or maybe just snoop a little. World+kitten knows damn well that the EU->US bank account data suck has sod all to do with terrorism, and rather more to do with keeping an eye on the competition. It is also public knowledge that various British agencies were involved in snooping on Airbus, with the info gleaned being passed right on to Boeing. The American government is using tactics from spying to bullying to downright theft to prop up its ailing businesses. The EU was stupid enough to agree to 'share' (a rather one way concept of sharing) data with the US (restrictions in place, but will they count for anything when it comes to the crunch?). Will your business be stupid enough to store company data "in the cloud" where you can have every assurance on the planet, but no way of knowing it is truly secure and private.

Maybe these findings were written by an American, for Americans have little to fear. It's the rest us the world that stands to lose.