Also, it was leaked that NSA TAO had a 70%+ success rate compromising Chinese systems. Even with the tech companies giving them secret zero days for an extended period of time, anyone that has been a blackhat knows they're not getting to a 70% success rate through exploits. Therefor, it's highly likely they can decrypt VPN/SSH (TLS) traffic encrypted with AES256/RC4-128/3DES and/or the RSA/EC public cryptography used. As you noted the leaked slide seems to indicate that.
Do you have more information on the smooth barrier? I did a quick google but didn't see much relevant.
There's a reason the NSA is pushing folks to use Suite B ciphers including Elliptic Curve along specific curves. It's not unreasonable to think that the NSA mathematicians have proven some relationship between EC and prime number theory in general.
There is some public domain work on this topic. See [https://en.wikipedia.org/wiki/Lenstra_elliptic_curve_factori...].
This might help explain in part the NSA's desire for large memory vector supercomputers going back to the 1990s over distributed memory MP systems.
There have been a number of very cost effective hardware approaches proposed for significant acceleration of both the sieving and linear algebra components of the NFS. Many of these proposals could successfully and cost effectively attack a 1024-bit number in the 2003/2004 era. The process at that time was around 130-nm. Today's process would have features at the 32-nm or 22-nm size. Today there has been a 100-fold increase in performance since 2003. (See http://tau.ac.il/~tromer/cryptodev/ for an overview.)
Combine this specialized hardware with an algorithmic improvement that gets to O(log n) or O(n log n)....
AES appears fine. The NSA and USG in general make a very strong effort in the 2000s to move all civilian command and control systems for satellites to AES-256 with TRANSEC capabilities. A brute force attack on AES-256 with a quantum computer should be on the order of 2^128 operations with currently know QC factoring algorithms. AES-128 looks weak at 2^64.
If the NSA can break something, they need to assume that their primary opponents can do so or will do so soon. China specifically comes to mind here. The can not release cryptography suites with known vulnerabilities. It is widely thought that it is more importantly to secure one's own signals before intercepting and decrypting one's enemies.
I think everything on the internet needs to be moved to Suite B protocols with forward secrecy enabled. AES-GCM overcomes all the known attacks (i.e. CRIME) against AES-CBC and AES-CTR.
I get the impression that the NSA is eight to ten years ahead of the public domain cryptographers in some areas. I think this gap is shrinking slowly. However, I have also heard that the NSA is preventing publication of some papers developed in the public domain due to national security reasons.
I don't recall the source of the Executive comment. It was kind of buried in a news piece with a broad focus that I read. I'll look for it. Unfortunately, I can't recall the exact language to do a good search and find it. Sorry.
But, here they are saying they have it, it's encrypted, and they can get it in "weeks or months" (despite the large number of drives/filesystems with presumably different keys): http://www.cbsnews.com/8301-31727_162-20059825-10391695.html
The Executive and Legislature couldn't keep something secret to save their lives. And, JSOC leaks like a fucking sieve. If I can't find that particular leak on the web, I'm sure there will be another one soon with the same info. Every guy likes to talk to pretty news reporters and seem important.
Claimed 75%+ success rate attacking Chinese systems: http://www.scmp.com/news/hong-kong/article/1260306/edward-sn...
Asrar al-Mujahideen (the Jihadi PGP fork w/ 2048bit RSA): http://www.rbijou.com/2013/03/18/an-overview-of-jihadist-enc...
The news coverage sucks something awful. The thing is having enough knowledge of mil/ir/tech/math to put all the leaks together.
"Show me all VPN startups in country X, and give me data so I can decrypt and discover users."
Holy crap. Is all encryption broken?