Reply #6: Here: [View All]

[NYC Liberal]

First off, "If you’re using Google Desktop, Google knows everything that you keep on your computer" is not true.
http://desktop.google.com/mac/privacypolicy.html

The Google Desktop application indexes and stores versions of your files and other computer activity, such as email, chats, and web history. These versions may also be mixed with your Web search results to produce results pages for you that integrate relevant content from your computer and information from the Web. Your computer's content is not sent to Google without your explicit permission.

If you cancel your Google Account or uninstall Google Desktop, the files indexed in the Search Across Computers feature will no longer be accessible through Google Desktop and may remain on our servers for up to 10 days before being deleted.

http://www.google.com/google-d-s/privacy.html

Content. Google Docs stores, processes and maintains your files (as well as previous versions of your files), sharing lists, and other data related to your account in order to provide the service to you

http://www.google.com/privacypolicy.html

When you use Google services, we make good faith efforts to provide you with access to your personal information and either to correct this data if it is inaccurate or to delete such data at your request if it is not otherwise required to be retained by law or for legitimate business purposes.