proposed national infrastructure bank with former pennsylvania gov. edward rendell, an indiana gov. mitch daniels will take your questions about the economy and the budget deal, and the fbi fawcett executives exist -- assistant director shawn henry focuses on the role of combating cyber threat and fraud. "washington journal" is next. >> when congress gets back, my basic argument to them is this -- we should not have to choose between getting our fiscal house in order and jobs and growth. we can't afford to do just one or the other, we've got to do both. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] host: that was president obama yesterday in illinois on his economic bus tour through the midwest. and this morning on "washington journal" we want to get your reaction to his three-day tour

through minnesota, iowa, and illinois. what you think the impact of this tour has been? this morning, it is democrats only. yesterday we did republicans only pitted democrats only -- /region. if you can't get through on the phone -- by the way, 30 days between your calls -- e-mail us -- and you can also participate 3 twitter. -- through twitter. and the third day is through facebook. facebook. facebook.com/cspan. if you go to the site, the question is right there and you can make a comment. we will read those on the air as well. here is "the washington times."

picture of president obama in atkinson yesterday.

that is from "the washington times." here is "the new york times" this morning. far from the capital, obama finds his woes has followed him.

that is in "the new york times." and here is "the new york post" this morning. black anger at bam. here is maxine waters yesterday

in detroit. >> we were supportive of the president -- what we want to do, we want to give the president every opportunity -- [commotion] what he's -- what he is prepared to lead on. we want to give him every opportunity. unconscionable. we don't know what the strategy is. that. t know what i say to you is -- we are politicians. we are elected officials. we are trying to do the right thing and the best thing. when you let us know it is time to let go -- we will let go. to let go -- we will let go. host: 202 is the area code --

think the impact of president obama's economic bus tour was. we will begin in tampa with alex. caller: listen, my comment is, i believe the media hasn't been being fair with the president -- when you buy a new house and it is a wreck, it takes time to put the house in order. i think the president is doing whatever he can. the only subject that -- that actually kills me is i don't see the president doing anything with immigration reform. but the media has to be honest and fair with the president. thank you for letting me talk on your show. host: kathy is from michigan. caller: good morning, steve. thanks, c-span. everybody that works there. i have several points.

i live in a small community. we have a town probably 20 miles from here. they are going to be building a factory that produces surgical instruments. they are based, i think, out of the century, michigan. it is a positive note. there are also some negatives. i had my wages slashed, and education, by dollar an hour. that is not a positive and there is really no recourse. host: tie that into the president's three-day bus tour? caller: why doesn't he go through smaller communities like harbor springs, louis michigan, or maybe the tribal lands that you have in the county.

it is a really -- the truth is it is most often very small factories that support communities like this. it is not just the big three. guest: -- host: it is also a tourist town. caller: it does not pay good wages. maybe for the businesses but not for the everyday person. everybody knows that. host: that was cafe. the president heads to martha's vineyard today for his vacation 3 comments from our facebook page. we will begin with donna -- he needs to get out of d.c. morgue --

rose is a democrat. staten island, new york. what do you think of the bus tour? caller: excellent. i think he has done a great job. he has been addressing key issues. one thing i would like to say is chuck schumer and christine gillibrand -- the staten island ferry, running on liquefied natural gas. we have two natural plants that we could utilize. we touched -- he touched upon a few key things. when he was at the mexican border he talked about how the employers break the law by hiring illegal immigrants. my thinking is this -- he needs to focus even more into that, into the illegal medicaid claims

because of the employer is breaking the law. host: we will leave it there. we are talking about the impact of the president's economic bus tour. if you could tie your comments into that, that would be great. carl and new orleans. -- in new orleans. carl? we have to move to los angeles. what do you think? caller: i think it is about time he actually goes out and speaks to the people. i really believe in him. i just don't think he has been very vocal lately. host: what is your economic situation? caller: i am part time. i have no health care. i do believe in him, i do believe that he cares about people, but i -- he is worried about speaking out for the people, be a little bit more

forceful. host: thanks for calling in. robert tweets in -- jackie rights in "the new york times" -- -- jackie calmes writes --

michael in philadelphia. good morning to you. what do you think about the president's bus tour? caller: well, i think it is more of the same. more talk. the talk is cheap. he needs to do some actions. i don't know who his advisers are exactly in the white house. but i am a retired union -- and i would be more than happy to go down to washington and spent a down to washington and spent a couple of days down there. because he is not listening to anyone. one of the other things i would like to say is -- where are the democratic leaders? where are they? there is no one speaking out. we know what some republican

politicians -- not the republicans themselves -- that we are all americans. but some of these republican politicians, i mean, -- stand up. say what is right. host: gregory, manhattan. good morning. caller: good morning, c-span. good morning, america. this has become a daily retained to wake up and watch "washington journal" the past couple of years. hopefully i will get a chance to finish what i have to say. the question for me is really minute. what impact to the economy is -- does the president that a bus tour have on me individually or anybody else? the reality is what impact has the republicans being the party the republicans being the party of no had on you, america, for the past two and a half years. obama's impact economically on america is -- via texas and the

current puppet perry. obama's actions with the stimulus money given to perry, billions of dollars to balance texas's budget so i think america needs to give up its -- off its butt and realize how manipulating the republican party is right now. what could the president do in three days that he has not tried to do in the past two and and half years. if everybody was honest with themselves they would realize of the country is on a downward the country is on a downward spiral via the republican party who said we are here to destroy it this president. lastly, perry did a treasonous action by threatening bernanke. where is the real question, c- span? that is what you should be asking.

host: john, who goes by affirmatively tweets in deede fareed zakaria writes -- another call from new york city -- this one from james. what do you think of the impact

of president obama's three-day bus tour? caller: i think the impact is very small because it was only three days, and president obama continues to avoid his base. he came to new york for, what, three hours to visit a billionaire -- on the west side? he is missing the point that if he doesn't bring jobs to america -- and the proposal like increasing the federal -- mandating all federal buildings have 50% clean energy. or energy efficient to 90%. these are simple things he can do as the president to change the job structure. because he is not going to get reelected from duty on the mass of support of young voters again. i think that was a bad thing he didn't target. i mean, he talked to the midland

which is suffering like everybody on both -- both coasts. he's got to target jobs. and i didn't hear that as a proposal. it is so simple. give it simple loans to small businesses under 100 people or sell -- so, and you will stimulate the economy and he will get reelected. is he going to do this? versus all the people on wall street he is catering to. host: zack puts on our facebook page -- celeste is a democrat from houston this morning. it just democrats for the first segment.

hi, celeste. we have to move onto upper marlboro, maryland, here in the suburbs. ann. caller: hi, glad to talk to you today. i would like to sort of reprimand the democrats. i would like to know what do they have in mind that is better? if these people are so bright and smart and know so much, why aren't they president? what do we want out of him? i think he would be wise to listen to chris matthews and take the problem to the states and pinpoint all of the falling bridges and buses. i hope he listens to chris matthews because that would be a plan i believe -- democrats, none of us are so wise, but we

should be supportive. that is what i have to say. host: thanks for calling in. our next admin is was -- is with former presidents -- pennsylvania gov. ed rendell who is promoting infrastructure spending. and we will also speak to current indiana gov. mitch daniels about his to -- new book. and following those, a continuous series, looking inside the fbi. today is fbi and cybersecurity. "wall street journal" editorial. obama on 9 farm -- on the farm --

contrast this with his frequent mentions of warren buffett who agrees that taxes should be raised on millions of people who make less than he does.

again, that is from "the wall street journal" a torque -- editorial page. atlanta, you are on the air. caller: i think it was very good in a sense but it missed an opportunity. one of the opportunities is for the president to restore the system. the buck may stop with the president but it begins with your local area and most local areas do not have job creation type of ordinances. it does not create the kind of environment where the individual, or that company

having problems, can go to a competent people at a local area that can help make plans and do what they can do at the local area. again, -- then, if they follow that up the chain of command, then these people can help them. when the republican or democrat will not help with the fix, then the local area should be able to give that back to the people. he should be able to inform them how to use the system because, again, they buck stops with him but begins at their feet. let me say this -- main street is not equal to the back streets. main street can be as much for special interest, all the money, and special people than it is for the new start, the person who's first-generation businesses started.

host: arlene in the clear water. -- in clear water. caller: i don't know this guy any more. even his talk is republican. he gave an interview with wolf blitzed their and praised corporations and now he is using a buzz word like shared sacrifice and asking corporations and the super rich to pay their fair share. we are drone bombing god knows how many countries. now he plans to announce more cuts than there repubs wanted -- deserted unions, lgbt community, women, and approved legislation to begin monitoring facebook. that is a great one. just remember, people, the lesser of two evils is still evil. we have to get into the streets, people. we are in real trouble. host: brent e-mails in --

illinois, chris. how close was the president to dixon, illinois? caller: i don't know. sarah palin was here the other day. host: you are in the south? caller: northern portion. i believe the president's hands are tied. the president -- republicans would do whatever they can to take the economy just to make it harder for him. he is the only one who has been talking about the middle class,

seniors, and the poor. when have you heard the republicans worrying about them? never. host: a vieweri to eatng in ---- tweeting in -- and cindy -- a democrat in charlotte. raymond, good morning. what do you think is the impact of this bus tour? caller: good morning. what i would like to say is that we have come to a cross. where we are experiencing the same old stuff over and over again. wake up, please.

you don't do the same thing over and over and expect a different result. these republicans put the same old garbage in another box. host: what does that mean? caller: it means and they are trying the same old garbage they did when bush was in the white house. trying to say, okay, we need to lower taxes on the rich. the same old stuff. it never worked. the only thing we know that has worked is the method that what president obama is trying to get us to understand. it has to be a balanced approach. you can't just expected to work -- we know it don't work. we need to get back to work. host: dw from seattle emails in --

gina is in miami. what do you think of the president's bus tour? gina? we will move on to marry in riverside, ohio. caller: i am a democrat, of course. there are things obama has done that many of us are not happy with. i am right down the street from a former delphi plant, and manufacturing -- auto parts. it has been leveled. 3000 jobs gone. so, i think if he is going to continue the bus tour at a later date, go to these sites -- go to the bridges, go to the infrastructure, go to the places where the jobs aren't any more. i think he needs to get out of

d.c., mix it up with people who wanted jobs, go into these areas of manufacturing. i was in the democratic convention in denver, and i worked out of their as well as in ohio with republicans and independents alike co got behind obama's public relations campaign. but it needs to be more than a public-relations campaign. chris matthews has been pounding on the jobs program for at least two years, as well as former labor secretary reich and others. they really need to push a good jobs program, not just minimum- wage jobs. and how he is going to do that, how his team will do it, if the republicans would just really put the american people about their party and trying to get the white house and really work but the people. we need to get together and the

republicans have been standing on the way. i think he is on the right track. how he -- nights the public and harnesses that energy that was at the convention, with republicans and independents and democrats alike, i am not sure, but i think he will have to work real hard at it and i think he has been slow and working much harder on a jobs program. host: where is riverside and what do you do for a living? caller: riverside is right outside of dayton, ohio. it is north. i have student rentals and a university town not far from here. i am here in this area where i grew up taking care of my elderly parents who are in their eighties, my dad was a world war ii vet. i grew up here, and it is really sad to see in boehner's district, roads that need

repaired. there are several schools -- boehner's is obviously getting federal funds because there are some schools being repaired. i spent a lot of time talking to get but that it wages. i hope obama as well as others, to boehner's district and point out that he needs to stir up more jobs. the republicans need to get on the same book for the american public. host: from politico, rick perry debuts at 18% in new hampshire. second place, taking 18% of the vote in a new survey.

william in dallas. good morning, what do you think of the present a's bus tour and the impact? caller: good morning. i think the present a's bus tour is doing a great job. i think president obama has done a great job since he has been there. no president has been under the kind of the press -- the pressure obama has been under. the question everything he has been doing. they have been at it ever since the has been in office. you have die-hard democrats -- keep doing what you are doing. you are doing a good job. host: columbus, georgia. caller: thank god for "washington journal."

what i want to know is why aren't any of the democrats out aren't any of the democrats out there boosting mr. obama? why are they out there fighting for all of us. -- art they out there fighting for all of us? if we ever get a person in like bush, we are going to lose the whole country. what do we need to do? do we need to walk on washington? as the largest employer, which is weak, the people, is that what it is going to take for them to understand what it is we want? we can do that. our forefathers did that. we can do it, too. host: florida abortion tweets

in -- floridagordon tweets in -- just a couple of comments that we have coming in. here is one from william -- denver, matt, good morning. caller: thank you for taking my call. first of all, i would like to

point out the ownership of "the wall street journal." i don't understand how they can quote an obscure former -- farmer. economic experts and all kinds of people praising obama talking about how he is saving the country from the debt ceiling crisis and the bailout. i think the bus tour -- i would like your personal opinion on the bus tour, if you can. but i think he is doing a great job. what he is doing is trying to get people involved again. but hopefully it he can get it again. host: matt, were you a supporter of obama in 2008 or hillary clinton? caller: definitely obama. contributed to this campaign and everything. host: what is your level of improve the of some four years

later? caller: i still love him. i don't care what the public says or what the republicans are trying to do. he is doing a great job. the country is in dire straits and he is doing everything he can to pull us through. host: what do you do in denver? caller: i work for planned parenthood. host: thanks for calling in. michigan, barbara, good morning. as a democrat, what is your impression of the bus tour? caller: i think the bus tour is fine. if people don't seem to realize that president obama doesn't have unilateral control over what happens in the country. he has to work with congress and the senate. i am sure it would be great if he were able to pass his own bills, passed his own budget, and move things along. and it just doesn't work like that. president bush had the benefit of having republican controlled

house and senate, who passed everything that he wanted. and president obama can't get anything done. his hands are tied. they want to bring up the bush tax cut -- but people seem to forget that without the bush tax cuts being extended, they were going to let an expert -- unemployment insurance lapse. i think he cares more about the american people than he does his own political career. thank you so much. host: thanks for calling in. some other news -- the lead story and "the washington times" this morning. this morning. gaddafi prepares for blitz --

that is the lead story in "the washington times." the lead story in "the new york times" this morning --

again, the lead story in "the new york times" this morning. inside is this a small photo. this is the new american ambassador to china, former commerce secretary and former washington state gov. gary locke. he is at a starbucks in a seattle, airport. a seemingly innocuous picture. a seemingly innocuous picture. photons u.s. envoy into a lesson for the chinese -- photo turns the u.s. envoy into a lesson.

that is an "the new york times" this morning. the next call on the impact of president obama's bus tour -- maryland -- baltimore. i punched the wrong line. sorry about that. crystal, you are on the air. caller: i think the tour is a positive thing. i hope that it continues as the election really gets its

footing. one thing i wanted to say is that they caller that called in before me hit it right on point. and i had another question -- what happened to the democrats in 2010? when the democrats did not go out and vote in 2010, they voted for divided government and this is a the result of what we get for not going out and supporting the president in the off years. so i am hoping that people will come out in full force in 2012 because if the republicans gain control, i can see as headed for an even worse time than what we are going through right now. and i appreciate your time. host: that is crystal from baltimore calling in. a viewer tweets in -- in just a few minutes we will

talk to former pennsylvania gov. edward rendell about that exact topic. dale, california. caller: the last callers said what i wanted to say. i am just disgusted by the people who call themselves democrats who totally ignored all the things president obama has already done. and then they have the nerve enough to complain while they sit down and voted these tea party people back into power. what do they want him to do? all of these, what have you done for me lately, people, need to just shut up and do something to help them instead of trying to tear him down. i don't see why the tour was necessary. i am sure he would rather be in washington working to help the people than riding around the country trying to explain what is going on.

host: from "the wall street journal" uaw seeks strike authorization vote from ford workers. aiello, market is a democrat -- aiello, market is a democrat -- idaho, mark is a democrat.

caller: thank you for taking my call. i have two comments i wanted to make about job stimulus. i guess his bus tour is supposed to include trying to promote some of that. what i have seen here in the northwest is that it really is not working. that a lot of the money that idaho and washington and oregon have received for infrastructure work, which is stimulus money to promote jobs, instead of that money being used -- the state's take it and they are supposed to lend it out and it puts private contractors

to work. instead, the state is keeping the money and they are doing the work in-house with state employees and the money is not being lent out to bid in the normal public money away where the lowest competent bitter -- bidder is awarded the job. so it is not actually putting anyone to work. and the other thing i read in yesterday's's lewiston newspaper is seattle received $20 million for the green stimulus that is supposed to save energy and at the same time put people to work, a block grant where they received $20 million to insulate low-income people houses. putting in double pane glass windows and insulation in their attics. they received $20,000,000.10

year ago. so far to date, 14 people have been hired and if i read it correctly, 11 of which were administrative. host: you know what, we will have to leave your comments right there. joe in the bronx. democrat. what do you think of the president's economic bus tour. caller: i am telling you, i am delighted. you know why? i have been trying to get to c- span the past 20 years. host: welcome. caller: amen. i am a counselor and i worked all my life with people and give them hope that one day they will become productive citizens. i am so happy today. listen -- i think it is a good

thing. eventually he will be able to speak to the real people. that is one of the things that i like. but the thing that i would like and i know he will not call me and tell me he wants me to be an adviser, the democrats -- not only in -- i would give advice. i would say, number one, what he really needs to do is get out of washington, go out there and listen to the real people, listen to the real people. i work with the federal government and the jobs score and help young people and after that i went to the union, 1199, worked with people with drug and alcohol problems, so i know where the community is.

community-based organization, like he himself started. what i would tell him, number one, is i am not telling him really what to do. if he would take advice from me i would tell him, number one, the people that he has surrounding him are not the people that are really understand the needs of their real people. host: you know what, joe? we will have to leave it at point number one. i am sorry, we are running out of time. thanks, everybody, for calling in did final facebook comment to read on the air -- for more information, facebook.com/cspan, and you can participate. coming up next, former

pennsylvania gov. ed rendell, you can see him on the screen, from pennsylvania, to talk about infrastructure spending. and we will be right back. >> for politics and public affairs, nonfiction books, and american history, it is the c- span networks. it is all available to you on television, radio, on line, and social media sites. search, watch, and share any time with c-span's video library. and we are on the road with this c-span digital busts and all local content vehicles, showing events from around the country. washington your way, the c-span networks -- created by cable and provided as a public service. >> watch more video of the candidates, see what political reporters are singing, and track the latest campaign contribution with c-span's website for campaign 2012. easy-to-use, and led to navigate

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august 16 marked the 34th anniversary of elvis presley's death and this weekend on american history to be on c-span 3, elvis aide and confidant talks about the king, and events that led to his 1970 visit to the white house and his meeting with president nixon, and we will also visit not vernon where recent archaeological discoveries should new light on george washington the gardener, warrior, statesman, painter, and susan eisenhower talked about her grandfather dwight eisenhower, his love for painting and his 1952 portrait of his wife. it the complete schedule at c- span.org/history. >> "washington journal" continues. host: on your screen is gov. ed rendell, former governor of pennsylvania, two-term governor and he is co-chaired of a group called building america's future. what is baf, governor grendell?

guest: in january of 2008, gov. schwarzenegger, gov. bloomberg of new york city, and myself, started this organization dedicated to try to convince the country and the congress to do a long-term infrastructure revitalization program. interestingly, at that time, almost every developed nation in the world had either undergone or was presently undergoing a decade-long infrastructure revitalization program. spending real dollars going infrastructure at scale, not only bolstering the short-term economy of the countries but the long-term economic competitiveness. our report that we release last monday was called "falling behind-falling apart." 20% of our roads are inferior.

the site of engineers ranked our nation's infrastructure as a d and the roads and bridges d- minus. in 2005, the world economic forum -- world economic forum said we have the best interest of and the world and now we are 15th best. the air transport infrastructure is 32nd best in the world behind countries like malaysia and panama. in ports, 22nd. we are falling apart and behind our competitor nations and by falling behind, it is going to cost our economy and our economic competitiveness in the long run. mayor bloomberg and i dedicated to try to convince the people as well as our legislates doors that we have to do something and do it very quickly and at a significant scale over the long term this next decade. host: how much do we currently spend on transportation

infrastructure -- and specifically when you talk about infrastructure, transportation infrastructure? guest: it is and it isn't. we talk about infrastructure and rebuilding it, we are talking about more than just transportation but talk about broadband, the electrical grid, the dams and levees. a lot of things that go into infrastructure behind -- beyond transportation. but to answer the transportation question, the congress around four years ago -- there was the surface transportation reform commission and they found we spend $84 billion a year, state, local, federal, and a little private money, and infrastructure, transportation. they recommended that we needed to spend $220 billion a year, so at an increase of about 140 billion just for transportation infrastructure. at baf, we think everything put together -- school buildings, you name it -- we need to spend an additional $200 billion a

year. host: where would this $200 billion come from? guest: the good news it is not all federal money, by any means. a lot of it would come from the infrastructure bank the president has correctly talked about. if you fund it at $25 billion or $30 billion it could boost $500 billion of private-sector funding. american had funds and investors are ready to invest in infrastructure because it's got a stable return. chinese funds are looking to invest an american and the structure, and european funds. so, we think the $500 billion figure is easily obtainable. secondly, state and local governments picked up about 45% to 50% of the overall bill. thirdly, what i would do is, you know there is $1.40 trillion in taxes owed to the united states by foreign companies who are holding that money abroad.

most of those countries want to repatriate -- they don't want to pay 34%. they are looking to pay 5%. 5% is too little. what i would do is have them bring it home at 15%, put all the money into our infrastructure program and that would produce another $220 billion. and if we spent $200 billion additional a year, this is the fact of people have to think about. according to every expert, including our own transportation department, $1 billion of infrastructure spending creates 25,000 jobs -- jobs at the roadside, waste water treatment facilities, but also jobs back at factories producing this deal, asphalt, concrete, the timber, that is necessary to do the things we need to do to repair and revitalize our infrastructure. so, if you do that, $200 million of additional spending -- $200 billion of additional spending

would produce 5 million new jobs in 10 years and that is the single most important thing we can do to revive the american economy in the short run and in the long run to make it competitive niche -- competitive. i was listening to mark from idaho who was complaining about a lot of the first stimulus money being unspent, and in most cases the money was spent and spent wisely. the president himself said it was a little slow getting off the mark. there is a solution. interestingly, when the governors, all 50, met with the president a month after he was elected, before he had become president, we met in philadelphia to talk about stimulus -- we all advocated strong infrastructure spending. the last stimulus did not spend nearly enough on infrastructure -- $69 billion out of $850 billion, 7%. it secondly, we urged the president to do something of use it or lose it. meaning, you gave the state a

time period -- pennsylvania got a billion dollars. you say to pennsylvania if half of that money is not spent, if the job and hirings had not begun in four months, you lose that have. and if it is not done in 67 months, you lose that half. and it gets transferred to states who are using their money quickly and effectively. use it or lose it. it is amazing, if you tell a contractor i have a big contract for you -- that is the good news. the bad news is you got to get your bid in in one month as opposed to three and you cannot dillydally around. if you order that bid, you have to start working in two months, you would be surprised how fast the respond. host: the gas tax is 18.4%. in your view, should be raised? where does it currently go? guest: first of all, we don't think you can raise the gas tax

right now just because the economy is so bad and it would be difficult. but we do believe over long run it should be raised. it should be raised by a significant level and we should index it to inflation. interestingly, peter, building america's future poll found that most americans think that the gas tax is indexed to inflation. that it goes up automatically each and every year. it is not true. the gas tax has not gone up since 1993. there is virtually nothing that we do or spend money on in our society that has not gone up significantly in the last 18 years. and the gas tax -- when the economy gets better, it should be raised. it probably should be phased in over two or three years. but we do need to raise the gas tax -- again, in the short run. because a long run we have to find a better way to pay for transportation because cars will be using less gas, cars that aren't going to be running on gas at all and we estimate sure

they are paying their fair share. but in the end, you have to pay. you get what you pay for. interestingly, people seem to look at infrastructure a little different from other spending. in the november election, november 2010, arguably the most anti-spending conservative election we have had in my lifetime, 64% of the infrastructure ballot referendums were approved by the voters. even though it meant either additional taxes, additional tolling or borrowing -- 64%, in red states as well as blue states. charleston, south carolina, the rightist -- reddish devoted to increase the taxes twice, once to revitalize the port of charleston which voters understood was so crucial to their well-being, and second, to help prepare a vital bridge -- repair a vital bridge that is important to the city's economy

as well as the quality of life. we have not touched on how important infrastructure is to our quality of life and public safety. how many bridges have to collapse? , need levees have to break? how many pipelines have to blow up before we get around to doing what we ought to be doing? host: it you would like to talk to former pennsylvania governor ed rendell, now head of building america's future about infrastructure spending and job creation -- you can also tweet in, of course, or an e-mail. on monday, president obama

talked about one aspect of infrastructure spending that want to get your comment on. >> no one has been hit harder than construction workers. for us to say at a time when interest rates are low, contractors begging for work, construction workers lining up to find jobs, let's rebuild america out and we could be rebuilding roads and bridges and parks all across america right now. [applause] to put hundreds of thousands of folks to work right now. there is a bill sitting in congress right now that would set up an infrastructure bank to get that movement. congress needs to move. host: i want to get your comment about the infrastructure bank proposal. guest: if we did infrastructure

right, it is millions of jobs. the infrastructure bank is important. number one, it would make decisions on projects of regional and national significance based on merit. not the old political system of who has the most powerful congressman or senator. number two, it would access private sector dollars spending they want to come in and invest in american in for structure projects with there is a rate of return. number three, the president talks about capitalizing at $5 billion a year for the next five years at. that is important. that need to be participation to act as leverage. it is absolutely needed and necessary. the president should do it quickly but. i got a great person to head up

the infrastructure bank. former senator george cohen of which was a former governor and mayor and knows about infrastructure. he is a big infrastructure advocate. host: the first call comes from street louis, mississippi. curtis, you're on the air. caller: how are you doing? i am seeing some pretty good progress along interstate 10 from baton rouge to texas. i could not agree with you more .bout the bridges spendin it is starting to crack and crumble. it is the year 200011. we do not need to have four-

interstates. they ought to be fixed by now. guest: you do not know how right you are spending between 1980 and 2006, the last year we had these statistics, the trucks and cars on the road increased by 103%, but our capacity increase by 84%. it is in street to keep doing what we are doing. i think republicans, independents, and even some tea party advocates know there is a difference between government spending that is not effective and investments in our long-term infrastructure. there is no question about it. i think the president can get infrastructure and some form of investment now to create jobs in that bill if everyone in the congress and the president himself is serious about deficit

reduction. we need to get serious long-term deficit reduction are around the $4 trillion mark. we also have to raise a little bit of revenue. i do not think people think is right that corporations paid no federal tax. we have to change that. in the short-term as well as the long term, we have to invest in our future, things like infrastructure, research to create decent, american jobs. host: this tweet coming in to you -- guest: no, we are not. if we do the right things we have to do to reduce the deficit and cut spending, we can, at the same time, invest. every economist has looked at

that. the simpson-bowles commission, the deficit reduction commission, alan simpson has said we have to invest because right now we may be out of money, but i do not think we are, but right now for the average american, they are more interested in jobs and getting their brother in law back to work and getting their son on the payroll. that is what they are interested in. the most important thing for all of us to realize is we can do both. we can do enough investment right now to stimulate the economy and put people back to work. if we do deficit reduction this much. we can do both, and we should do both. host: an independent from

virginia. you are on with former pennsylvania governor ed rendell. caller: i really love pennsylvania. several years ago, i made a trip from abington up through altoona to niagara falls. i went up 219. at that time, you had to go through a 100 small towns. are you familiar with that area? guest: i gave a lot of state money and the appalachian regional money to build up and eliminate those bypasses, to build up 219 from the border all the way up to the new york state border. is a perfect example of a road

that needs to be built, not just for our quality of life, but to make that region competitive. the state invested in buildings that road, and we are starting to do it. the interesting thing is i was accused in pennsylvania of being a big spender. i did spend money on infrastructure. today, pennsylvania has a 7.5% unemployment rate, almost two points lower than the national average. it is not an accident. caller: would you consider a toll road for 219? host: we will get an answer to that. are you a semi truck driver? caller: i am retired now pending i had a smaller truck. the towns were so close together it tehe speed limits so low,

took forever to get up there. i did not seek nationally advertised restaurants or motels. host: are you in favor of toll roads? caller: yes, i wouldn't paid big time to not go through those small towns with low speed limits. guest: you are absolutely right. you get when you pay for. you get it when you go shopping for a tv set, a washing machine, or a car. you spend $11,000 on a car, you are not going to get a car that runs at the same as a $20,000 car. if we want infrastructure for public safety and our economy, you build significant 219. we tried to build id without tolls, but if you build a

significant road, you will see the economic development grown- up all along that corridor. it would be great for business and the local people as well. a toll is a small price to pay for that. you can in fact get private dollars to invest to help you with the build out. that return on investment can come from tolls. host: i think all of us that live on the east coast have driven the pennsylvania turnpike at one point or another. where does the money go that is collected on that turnpike? guest: 100% of it goes back to the turnpike itself, a small part to administration. when i first became governor, the turnpike commission came to

me and said we need to raise tolls. i said ok that sounds reasonable. what do you going to do with the toll money? 100% is going to go into fixing the turnpike up. the pennsylvania turnpike is the oldest toll road in the country. so, i said, fine. how much do you want to raise it? 41%. they said, governor, that is what it would be if we raised it consistent to inflation since 1991. i got approval. a good seven-letters. -- i got seven negative letters. host: the next call comes from rhode island. the democrats' line.

caller: it is such an honor to speak with you. i am a big fan and a supporter of infrastructure. if you could, i would like you to expand a little bit and speak to the importance of broadband, particularly for economic development in small, rural communities like ours. i think it is really critical. guest: the president has said he wants 98% of america to be connected by broadband, and he is right. we are not close to that particularly in rural areas. we need to build out our broadband system. there are several ways to do that. the private sector -- i am a fan of the private sector bank the private sector goes where there are profits to be made. sometimes in rural areas, there

are not enough customers to make a profit. there has to be a form of incentives for them to do it. there is no question. there is new technology. there is a company that is trying to use satellites to bring us out broadband coverage to 98% of the country. the at&t t-mobile merger is supposedly at&t is going to use a part of the spectrum that t- mobile has used to build out its network. we need to bring broadband to virtually every part of this country. do you know what we also need, laura? we need high-speed rail. not everywhere in the country. we need in at least three corridors where i believed it would pay for itself. one is the california coastline.

two, chicago. 3 is washington to boston. it averages 70 miles per hour. can you imagine if we had a high-speed rail line that averaged 170 miles per hour? if you could get from washington to new york in an hour and 20 minutes? no one would take the shuttle any more. it would do wonders for our air transport system. americans that travel to asia and europe, people would come back to me and say what is wrong with us? why does spain have trains that go to hundred 20 miles per hour and there is nothing like that here? the chinese are spending billions of dollars a year to

build out a high-speed rail network. host: ed rendell was the national committee chair in 2000. governor, the president has talked about this speech he would be given after labor day on jobs. what would be your advice? guest: heavy on infrastructure. use it or lose it. that is the way we could have the quickest impact. number two, do some infrastructure in long-term planning. most importantly at all, wrap the investment program in a big package that calls for serious deficit reduction across the board. no sacred cows. some of the entitlement programs have to be looked at.

you can do it over the long term. simpson-bowles recommended changes in medicare and social security that did not go into effect until 2050. i would do it earlier than that because we need more of a significant impact. if you put the jobs bill into significant deficit reduction where we raise revenue and close loopholes, i think everybody wants to see those loopholes closed. lets close them. a lot of unintentional damage to the country. there is revenue that needs to be raised as well as spending cuts that have to be made. if we do it all together in that speech, the president will captured the nation's imagination, look like a leader, and then is up to the congress to do something that is going to put americans to work.

host: would you like to clarify your comment about hillary clinton running in 2016? guest: the interviewer asked me if i thought hillary clinton would ever run president again. i said possibly and probably in 2016. she is not going to run in 2012. i know from talking to her, she believes the president has done a good job. she also says she is not going to run again for any public office. i believe she is telling the truth circa 2011. i think those of us who care about her and think she would be a great president, we might have a chance to persuade her to do so. host: mclean, va., bolivia is on the republican line. -- olivia is on the republicans

blind. caller: i am glad you are on the station this morning. i have comments to make that i wish you would address. one is the boston fiasco where they said they would spend $3 billion and it turned out to cost $15 billion and still growing. the idea is if you say you only have to spend $3 billion, people will approve it and then just keep increasing the amount. it is standard operating procedure for construction companies. the second thing is i don't understand the infrastructure bank. i do believe in public-private partnerships, and i wish you would explain that further. also, i am so sad that you do not have some republicans on

your committee. i think you have some very strong democrats that understand the need, that there are republicans that do, too, and wish you would include some of your republican friends to join you in this effort. guest: in fact, governor schwarzenegger who is a republican, mike bloomberg had become an independent by 2008, and i was the only democrat on the group. we have enlisted a lot of members. scott smith to the republican mayor of arizona -- he and i have authored several op ed piece is all around the country. we have a number of republican people who are part of building america's future.

1 very conservative republican has been a leader in preaching we ought to spend on infrastructure. there are republicans out there who get this issue, who get it loud and clear. it has to be bipartisan. infrastructure has always been a big republican issue. the infrastructure bank is not for the ordinary road paving and bridge rebuilding. that money would still come through the federal transportation act and go out to the states by a formula. would determine how that money is spent just like it is normally. the infrastructure bank, the government money in there, that money would be used to write down interest on loans, maybe on

a few rare occasions grants, but mostly loans. let's say we have a project -- michigan decides they need to build a whole new highway, but they need up front money from the private sector. the infrastructure bank would find who in the private sector is interested in doing that, work with michigan to leverage investment, and the bank itself might long michigan money to pay down the interest rate on its bonds or help with the private- sector to put in the money necessary. let's say the private sector was willing to invest 80% of the cost, mich. 15% of the cost. the infrastructure bank would lower michigan the last five%. let's go to los angeles.

voters voted to increase their sales tax by half a penny to do an incredible amount of infrastructure spending over the next 30 years. a leader on the infrastructure movement wants to spend that money up front now, but he needs money up front. the infrastructure bank could loaned los angeles the money and get a repayment from additional sales tax. there are many different ways that the infrastructure bank could leverage private money with a little government money. the european union clones out money and it makes a slight return. with a loan that money way below interest rates what the normal loan would be. that helps enable projects to get off the dime. contractors do it all the time.

in pennsylvania, we did it while i was governor. we could disqualify you for bidding on contracts if you had a pattern. you add constant cost over runs by the time you were done. he would be disqualified from doing that. -- you would be disqualified from doing that. bid the get rid of them. host: we are talking to former pennsylvania governor ed rendell about infrastructure spending. he is co-chair of building america's future. next call comes from cape cod, mass., mike. caller: yes, governor, it is good to hear you speaking.

i am a retired disabled veteran, and i agree with your high-speed rail system id. -- system idea. i find if you want to lower the interest rates on bonds in order to boost revenues for infrastructure, you need to maybe consider temporary switching of the bond to gold system temporarily. it is going for $1,800 almost an ounce. guest: i do not know if that is legally feasible, but it would be a terrific idea. the caller reminded me one of the things i would do if we launched into this 10-year infrastructure revitalization program that creates 5 million new jobs, i would take a hunk of

those jobs and make them available for our returning soldiers and sailors and marines from operation iraqi freedom and operation in during freedom in afghanistan. i was shocked to hear is that 30% of the returning veterans from those two wars are unemployed. they would make excellent construction workers. we should have a special program where we train them and put them into these decent paying jobs. host: governor rendell, do you understand where the governors of ohio and florida were coming from when they said no to federal funds for high-speed rail? guest: again, i have not had a chance to speak to any of them. i know john k. sick from his days in the congress.

they must have decided that the benefit from high-speed rail in their states was outweighed by the costs that the states would have to come up with to match the program. without being on the ground there, i cannot say if that analysis is right or wrong. they were also afraid of cost overruns. what happens if it turns out to be three times x? that is the same concern debt gov. christie -- that gov. christie raised in new york. if that analysis is correct, you cannot argue with them. i think ohio would be a state where some high-speed rail would be very valuable. i think that would be true in

parts of florida as well. i do not know the cost benefit analysis well enough to comment on it. i would say that we should not build high-speed rail everywhere. there are places where we do not need a. in the three corridors that i talked about, you can bet that we have the density and the potential ridership. can you imagine what a high- speed rail line at 180 miles per hour would make? host: leonard is on the democrats' line. caller: good morning. host: please go ahead with your comments. caller: i know that everybody talks about jobs, jobs, jobs. what they are talking about is

people with college educations and going into computers and things like that. i am originally from massachusetts. what i was getting at is how about bringing back something from the roosevelt era like the ccc and the wpa? guest: first of all, again think the private sector can do most things better than the government. that is number one. number two, it would take the creation of a huge government bureaucracy to manage debt. number three, it would be slow getting up and running. and there are things that i think if i was doing a jobs bill -- i will give you a good example. we have to programs -- two programs.

we hired mostly young people for one or two-year stints for those programs. they provide an incredibly important service. now, we could hire in that program almost 60,000 young people. by the way, high school graduates are the single worst demographic when it comes to unemployment. 60,000 young people, $900 million. if we'd least that money -- we released that money, those young people would be on the job by december 1. earning money, providing a service. that is a government program that exists already. it could be used very quickly. and another thing that we could do quickly is fha, fannie mae and freddie mac own 300,000

homes that are in foreclosure. most of them need work. the federal government is trying to sell as homes with no market. what they ought to do is hire workers through the private sector to get rid of those homes quickly. put them out to rental. you can use those revenues to help us save it is significant amount of the cost fixing them up. we could put those workers to work in two months. there are a lot of things we can do. the transportation financing program -- there is 300 there is $3 billion that has been allocated that has not been awarded yet. let's get those sings out.

that is 75,000 new, good paying jobs. let's get those things out tomorrow. there is a lot that the president can do. i hope the republicans and conservative democrats act responsibly for the country's well-being. host: who is the biggest republican threat in the presidential race to president obama? guest: i think governor mitt romney. that is a ticket that would appeal to many voters. theink they've are strongest candidates because they do not scare anybody. gov. rick perry has scared the bejabbers out of a lot of people. i am a mitch daniels fan. he and i used to testify before

committees on the privatization of transportation assets. we almost pulled it off with the pennsylvania turnpike. mitch daniels is a thoughtful, intelligent moderate leader that i think would have made a good candidate. host: thank you for coming on the "washington journal." , and the next, governor mitch daniels of indiana. here is his book. "keeping the republic." we will complete our series on the fbi, today's fbi, looking at cyber security. we will be right back with governor daniels. >> the july 20 un declaration of famine in somalia was not made lightly and reflects the dire conditions of the people. is based on nutrition and

mortality surveys. on the basis of the data verified, we estimate that in the last 90 days, 29,000 somali children have died. nearly 4% of the children in southern somalia. our fear is that the famine conditions in those two regions will spread to encompass the entire eight regions of somalia. even if they are good, we could bear witness to another wave of mortalities in the south due to water-borne diseases. >> watch more of this hearing at the c-span radio library. >> in a city that averages 250 murders a year, a former detective and investigative reporter take on the tough questions -- why do we callebs? it is one of the books which are

featuring -- why do we kill? it is one of the books we are featuring this weekend. steve brill talks to a former education secretary. get the complete schedule online where you can watch nearly all of our 9000 programs online. every weekend, it is american history tv on c-span3. 48 hours of people and events telling the american story. our history book shelf features some of the best known history writers. visit college classrooms across the country. go behind the scenes at museums and historic sites on "american

artifacts." get our complete schedule at c- span.org/history. sign up to get it e-mailed to you. >> "washington journal" continues. host: here is the cover of governor mitch daniels' upcoming book that publishes and about a month or so. that title, "keeping the republic." governor daniels now joins us to take your calls. governor daniels, you spent eight years in indiana. how would you describe the relationship between the federal government and states, economically? guest: i think in most states we are headed in completely different directions. we have been asking the question

what can state governments do or do better or do faster or maybe stop doing to make it more likely that the next job, the next investment -- the federal government for the last two years gets up and thinks what we do to put another barrier, another regulation, another uncertainty, another tax on the people who would like to hire people and grow this economy? we states balance our budgets no matter what and take care of our food usual duties -- financial duties. host: today, our system of governance is being challenged by china and other authoritarian cultures that have generated faster economic growth in

anything we have seen capable of. ho why did you write that? guest: i think it is a statement of fact. it has been written widely and said by the leaders of these countries. the only way to have a system that lists huge numbers of people permanently otut of

poverty and into better lives is a one that america pioneered, a free system that is maintained by self-reliant people. temporarily, through some stumbles on our part, what seemed a decade ago, people writing books about it, would seem so self-evident is now under question. america, i believe, will recover its footing. host: what did you mean by that title? guest: thinking back to your history, it was reported that benjamin franklin leaving independence hall after the writing of the constitution was asked by a crowd -- the woman supposedly said, "what kind of government have you given us?" he said, "a republic, madam."

those conditions and gave rise to liberty in this country. i think, an exciting challenge for our day. to prove, once again to the world, that americans are the kind of people who can act individually to elalead responsible lives of their own and do not need the government to constantly protect them and shelter them and coddle them. because we are that kind of people, we can act together collectively in a free democratic system to make important decisions, not to spend our children's money before they earn it, not to bankrupt the future for the

benefit of the president. host: i want to read one of the more different introduction to the book.

guest: i guess that was a warning to the reader that if they were looking for something typical, at least as i observed boos' books,official's this one would be different. i said no i did not think the world needed another one of those. i wanted to say a few things about the central questions in front of us. who is in charge here? what people of good will do to try to protect and promote the important part of life, which is private life, the freedoms we enjoy it as members of the family and businesses and little

leagues and so forth, or is the government's supposed to be in charge and ensure that somehow no one takes advantage of each other and that kind of thing? what kind of people are we going to be here? preachers of dignity or objects of therapy. those are the things that i wanted to talk about. i wrote that opening to alert the reader that if they were looking for something else, this was not their product. host: you go on to bash the baby boomers.

guest: there was a little bit of an exaggeration for effect. ours has been -- i am hardly to observe this first. we have been a pretty self- center generation. many of us thought we were the center of attention. elsewhere, there is a great opportunity in front of this generation to leave a very positive mark by tackling the huge problems that have accumulated during our lifetime, specifically the debt which is going to crush our economy and this whole idea of the american dream that someone can ris start with nothing and rise. it will require those qualities that i just mentioned, a

willingness to come together and unify the people to do some common sense things which will insure the future is better than today. you are reading accurately, of course, the things in the early part of this book, but this book is an optimistic statement about both the character of the american people and our ability as an american public to come together, get past what i think unfortunatevery politic of recent years. host: if the newly constituted get commission were to look at your book and look for ways to how to change a federal tax dollars, what advice could they find in here? guest: we must act now even though the actions would take the real effect years from now.

they are totally on affordable. the enemies of social security and medicare are the people saying leave them alone. that is mathematically false. it is not a matter of left or right or republican or democrat. this is an arithmetic. the best thing we can do toward a much better economy today would be to say to the world america is not going broke. you can do this while protecting 100% of those who are in those programs today or those who are coming near them in the next two years. god bless you. nothing changes. help us perform these programs in very modest ways, by the way, starting years from now so the next generation can have some protection, too.

that would be the first thing. host: on page 199, governor mitch daniels writes -- he goes on to talk about the important contributions and to remind us how old they are in 2010. nancy pelosi inadvertently strengthened the case for change when she threw a party. host: what was that important to

point out the age of social security? guest: i do not know that many companies or products that have not changed over a period of that long. we all know this. social security was created at a time when the average life expectancy was under the age of 70. there were dozens of workers for every recipient. now that is completely different. life expectancy is climbing, thank goodness, so people are taking out of those programs far longer than before. under those circumstances, it is really not sensible at all to demand we freeze in place the terms and conditions of so long

ago. host: mitch daniels was chief of staff to senator richard lugar in the 1970's and 1980's. he worked with eli lilly during hte interim period. you have been governor since 2004? guest: 2005. host: this is his book. i want to talk about one more topic before we move to the phone calls. the phone numbers are up on the screen. i want to talk about health care and an indian a program. i want to know what it is. -- an indiana program. to pay for the indiana health care program, an increase in the tobacco tax. in major target of the fitness

and wellness efforts i have launched. one obvious reason for our high smoking levels was the cheapest of cigarettes driven by a very low tax at 55.5 cents per pack. i refer republicans -- i referred the republicans to ronald reagan who said, "if you want more of something, tax it less." i wanted less smoking in indiana. so, health care funding, health care, and taxes. guest: all right. first, to pick up where you left off, it was a fund it that way. i point out specifically this is a program for the low-income uninsured, those who are not covered by medicaid. we wanted to spread the umbrella, the peace of mind of

health insurance, to more people. this was our way of doing it. there were major differences between the plan and medicaid. it is not an entitlement program. we collect money through an increase in the tobacco tax that covers a significant fraction of our uninsured. that was by design so it would not eat the budget like it happened in many other states with open-ended entitlement programs. secondly, the principal difference is the program is self-directed. it goes back to things we were talking about earlier. these low income folks contribute to a low percentage of the income that they do have and the state puts the rest in an account. we trust them to make smart decisions for themselves. if they run through it all

because of a bad health experience, they are completely covered on the other and. it is their money. guess what? they turned out to be very discerning consumers like anyone else. they use the emergency room far less because it is expensive. they are more likely to use preventive care and are more likely to ask for second opinions from physicians. the money that is left, and it is accumulating, is theirs. they can use it to pay down the next year premiums or use it for the future. we believe is a better way of doing health care as it has been done in this country. i think it demonstrates

something i believe fervently, that americans, all stations of life, are fully capable and which should help and encourage them to make their own choices. they do not need the government to do it for them. host: very quickly, the department of labor has released its weekly unemployment statistics. the number rose back above 400,000 last week. the average number of applications over the past four weeks fell to its lowest level since mid april. the current unemployment rate in in indiana -- 8.3%? guest: that is right. host: how did it go to 8.3%? guest: a lot of the improvement has been in manufacturing. it is a bigger part of our

economy than other states. agriculture has been very strong. but we just believe we have created here one of the best business environment in america, so we think we are holding our own better than other states. you know, it is just far too high. i am sure you know that the unemployment situation in this country is not as bad as it looks. it is worse. one in five males in this country is not going to work this morning. it is a terrible situation and one that the national policy is not improving. here is the cover

of the book. it comes out in about a month or so. this is a preview. "keeping the republic." springfield, va., you are on with governor daniels. caller: good morning. governor daniels, i have to tell you i was so tickled when i heard that you were on because i had the chance in 2008 to visit the indianapolis area. i am a budding artist. one of the things i noticed about the downtown area was a beautiful fountain memorial. you have some real gems in that city. when i went inside the fountain gift shop, you have no gift cards or post cards of all of the great sights in indianapolis or anything around 8. i wanted to know why there is not a bigger push to market to people who come to that area.

guest: thank you. that is a great tip and i will pass it along to the mayor of the city and to our tourism people to try to make certain that we are sharing the good news. there is a lot of beautiful architecture and nature all over the state. i am not convinced that we have done as expert of a job in getting the word out. i appreciate the tip, and we will act on it. host: next call. caller: is not just the crushing economy. we have one in seven americans in prison in this country which is ridiculous. most of them are therefore making a safer choice then using alcohol or tobacco. i would like to say this quickly

and get a response. last year in america, 400,000 americans died as a result of smoking tobacco. 80,000 americans died as a result of drinking alcohol. zero americans died from smoking marijuana last year. host: i think we got the point of. any thoughts? guest: first of all, as unfortunate as it is, it is clearly a factor in the declining crime rates which continue to surprise all sorts of people back there were people who believed that somehow crime and unemployment or directly linked. that has exploded in the last 20 or 30 years because they are not moving in sync with each other. one factor of keeping crime done in this country is we got more serious about repeat criminals and keeping them with a cannot

hurt other people. however, greg is on to something here. we want to try to revise our sentencing so that those whose violent, non-whi low level drug offense where no violence was involved, low level property offenses, still need to be incarcerated, but maybe there can be done closer to home in their community bank there is evidence that a repeat at lower rates when they do that. so, we are working here in indiana to reform criminal sentencing. host: any estimates on what obesity and smoking cost the state of indiana? guest: there are estimates all

over the place. i do not know if anybody has claimed precision about this, but we can all agree that they are large and is a real problem. we made a very concerted effort here. indiana has not been a very healthy state. high rates of obesity and smoking. we have been working on it very hard. there has been some real progress, but a long way to go. host: the next call comes from florida. please go ahead with your question or comment. caller: my question has changed since i called in because you guys are talking about other things. i think this entitlement program, welfare, should be wrapped together. when you go to the social security office, it is like

four tigers in 1 k to. if we had a liaison to where people could go to one place to get everything they needed, it would be a lot better and would be able to catch fraud. i wanted to get your opinion on child tax credits. people are running to the banks to cash these checks. i think we ought to put this money on cards so this money is not spend on drugs. maybe trade that money for insurance sunday on not on medicaid after they tojust got an $8,000 check. guest: david, you come see us any time. you will find we have some of the lowest property taxes here. david raises i think at least two fascinating questions and

ones that i have tried to think about a lot. he talks about this hodgepodge of welfare programs that we have created. each one of them have started with high intentions. destruction of family formation or personal i float the idea in the book. it is not original with me. it has been around a long time. i love the idea that you might merge all of these into what is called a negative income tax. get rid of not simply all the redundancy, complexity that david asks about, but get rid of all the bureaucracy and waste of administrative money that goes with operating dozens of programs that transfer income from some americans to others. it is not a perfect answer, but

if you did simply have -- what this would amount to is those who earn less than what we consider a living amount of income, they would be topped above that level with an incentive to keep most of the money they earned if they were able to get above that level. i think it is a lot to recommend in contrast with the mess that david was describing today. it runs counter to david's other point. david was talking about the misuse of some of this money. i hear about it from hoosiers all the time. things that were not really necessary or perhaps were unhealthy or that sort of thing. here is where we have to decide what kind of people we want to be. i would rather place the trust and responsibility in americans to make those decisions for themselves, live with the consequences if they made them

poorly, then to have government constantly playing nanny, constantly trying -- fuel, by the way -- trying to steer, control the behavior of americans. host: in your chapter "taking on the statist quo," you have a subchapter "saying oops," about the indian a welfare state. guest: my position from day one is we believe in -- about the indiana welfare state. guest: my position from day one -- within the sphere of government, we believe government is active and always tries to excel and improve

service. you are 98% likely to be satisfied and you will be out the door and less than eight minutes. we believe in government that is effective and does those necessary things very well. now, if you are trying new things all the time -- and we are -- inevitably, some of them are not going to work out. i make the point all the time, i have never found "oops" to be a hard word to say. if we try to improve something in indiana, we will learn from that and immediately try to do it better. you asked about welfare changes, and that is a great example. we had a heck of a mess, one of the worst in america, that had to be fixed. we took the best of the old, best of the new, and now we are

well better than the national average and vastly ahead of where we started. the larger point here is that i believe the american people -- for sure, hoosiers -- have the maturity and the common sense to accept something like that, and they will appreciate and support policies that work. as long as you deliver results, if you stumble along the way in a good-faith effort to do better, people will understand it. and overlook it. host: what do you mean by "taking on the statist quo" rather than the status quo? ak pun probably a wee on my part. the state believe sincerely that

the decision making in this country should be in the hands of wise people who will look out for the rest of us and protect us from creditors on all sides and from our own bad decisions -- from predators on all sides and from our own bad decisions. they're going to have the light bulb rule. they will ban the lightbulb we have all known. the secretary of energy when challenged says we are taking away people's freedom to waste their money. that is a mentality that is really in place in much of our government, and that is what i referred to as "the statist quo ." those who are challenging it, as far as i'm concerned, represent progress in thought in this country. and those -- represent progress

thought in this country. they are the reactionary's looking backwards to a past -- they are the reactionaries looking backwards to a past, and they will work a terrible injustice on young people if we do not change it. guest: next call for governor dean of comes from theresa, florida, a democrat. caller: my concern with all the protection of the future, the future of medicaid, i have a problem really trusting where the republicans are coming from. because almost like allowing the croaked to enter back into the cookie jar -- and allowing the crook to enter back into the cookie jar -- i think the word i would like to refer to is integrity. i like hearing "integrity" in

between the parties. being a democrat and even looking over into the republican party to said well, if i wanted 2012 for a 200 republican, where do i for help for the lower class? i am afraid we are getting ready to erase the realities of that poor population. host: governor daniels? guest: teresa, i share very much your concern. i appreciate your question. frankly, i believe my party has to do a better job of speaking the language of unity to america. we will not solve the problems we have if we stay divided 51/49 the way we have been. second, i would say to you, as i try to say to every audience -- i believe what i believe about changing these programs so that

they do last. i believe what i believe about leaving more dollars in the pockets of people who might hire somebody with those dollars. i believe what i believe about pleasing growth in jobs ahead of every other priority until americans are able to have the sort of employment that they deserve and can support families with. i believe that physically, because i believe the american project starts with those who have nothing, with those who do not have means today but have a dream and the will to work hard to achieve it. that is exactly what i believe the policies of this administration in the last few years have jeopardized the most. i think they are cruelly and least effective on the behalf of low-income people. we are talking about the best means to get to a goal that you

expressed and that i share. host: this is the cover of mitch daniels' new book. any regrets about not getting into the 2012 presidential race? guest: i am not a rearview mirror type of person. it was a decision we made as a family, and i am at peace with it. i think my family is pleased with it. that is a priority that i do not have a higher one. host: paul bedard is wondering if mitch daniels is waiting to get drafted into the presidential race of 2012. guest: no no. i will share something with you.

you read in the opening of the introduction, initially it said so many books are written because the author gets to run for president. this one is written specifically because i do not. but i love our country, i am worried, and here is my thoughts about it. the book was written back in 2010, touched up a little bit this spring. it has no intention of starting talk like that you just reported. host: this is not in bookstores yet, but it can be ordered on amazon or any of the other book- buying sources online. about five minutes left with our guest. tampa, florida, earl, a republican. you are on with governor mitch dales of indiana -- mitch

daniels of indiana. caller: it is a pleasure to talk to you. a friend of mine quit because he could not look in the mirror in the morning. he told me that eventually in the united states, the tax code was going to turn into our nation into a nation of liars and cheats. everybody knows it is a mess. i'm not so sure that governors should not understand that they have to change totally our tax system. it just will not work. it is crooked. there are 67,000 pages. nobody knows what is in it, and both parties take advantage of it to stay elected. host: governor? guest: i agree completely. frankly, it is an essential change, one of the big ones that must come that we ought to come together around. first of all, for the reasons

that the caller gives, and secondly because it is perhaps the single best step we can take to a stronger economy, more jobs, and growth. with regard to the tax code, it is a mess. i read quote -- by quote bill simon -- it looks like -- i quote bill simon -- it looks like somebody designed it on purpose. one of the things that troubles me about it, it further diminishes the citizen in this country. i freely admit i have not been able to do my own tax form for a long time. now fewer than all americans can cope with it. that all by itself is a bothersome thing in a free society. here is a little bit of hope for you. there is a lot of disagreement, of course, about what the best way forward is on all these other questions, but there is a lot of agreement across the

spectrum, among economists and others, about the kind of tax code that would strengthen this economy. it would start by wiping out many of the special preferences and exemptions and so forth, allowing their for the rates to come down. we know that lower rates on the next hour of work, the next dollar invested, means the more people get tired. this would be, i think, a terrific -- the more people get hired. this would be, i think, a terrific initiative that would get us on the right track. this is one i would hope democrats and republicans can get together on. democrats would see that most of these preferences benefit upper- income people disproportionately. republicans would see a much lower, flatter, much simpler

code that the citizen can cope with that encourages rather than discourages job-creating investment. host: mitch daniels rights, "i do not happen to favor a vat, not because it is bad economic or social policy but because of the pearly practical risk that it might be increased to easily. given the shape we are in, no solution should be dismissed out of hand," is what governor daniels rights. you also mentioned the invaluable paul ryan. guest: he has one of the most courageous, principled minds

that we have in our country. he has felt, with a young family and his own public career still being pretty young, this was not the time. but if he rethinks that, he would in rich this a lot. this is a guy with a great heart, that the average person and the average american, all the things that the average american thinks would be more -- said more eloquently about whatever it takes to restore a portability in this country, to restore the conditions for a stable, broad middle class. his is a very important voice. host: there are pictures in the book as well. here's a picture of mitch daniels in 1972. yes, this is him right there. two to the right of him, senator dick lugar, who faces a primary this year. what does that challenge look

like from the state level, governor daniels? guest: it looks like a spirited race between two credible and elected officials. i personally will vote for senator lugar. he has been one of the few people i would say in the past few decades who genuinely deserve the title of statesmen. continueg that he will to serve, but it will be a good race, i believe. host: joining us from indianapolis has been governor mitch daniels. here is the cover of the book. available in bookstores in a couple of weeks. available online for pre order. governor daniels, thank you so much. 45 minutes left on "washington journal," and our continuing series, "looking inside the fbi," with shawn henry, and we

will be right back. >> the july 20 u.n. declaration of famine in the two regions of somalia were not made lightly and reflects the dire conditions of the people in somalia. based on nutrition and mortality surveys, verified by the cbc, we estimate that -- by the cdc -- in the last 29 days, 29,000 children have died. our fear and the fear of the international community and the governments in the horn of africa is that the famine conditions in those two regions of somalia will spread to encompass the entire eight regions of southern somalia. the next rains are september- october. even if they are good, we could bear witness to another wave of

mortality due to waterborne diseases. >> watch more from this senate hearing on line at the c-span video library. >> in a city that averages 250 murders a year, a former baltimore homicide detective kelvin sewell and stephen janis take on this question this weekend on c-span2 on "booktv." plus, armstrong williams. court tv founder steven brill talks with former assistant education secretary diane and birds. watch more video of the candidates. see what political reporters are saying, and track the latest

contributions to campaigns with c-span's website for tim kaine 2012. it helps you navigate the political landscape -- website for campaign 2012. it helps you navigate the political landscape. all at c-span.org/campaign2012. it is a country fraught with corruption, natural disasters, and islamic extremists. >> what was really shocking to me and many people in pakistan was that these assassinations were welcomed, working ventilated. by many pakistanis. these are not terrorists, not al qaeda, not taliban, ordinary pakistanis who feel their religion is threatened, that the country is becoming too secular, that the islamic values are

under attack. and that blasphemy, which is anything that insults' the or islam is to be defended with your life. >> "washington journal" continues. host: a quick program note for all of you this morning. hillary clinton will be giving a talk this morning about the situation in syria. we are learning from the associated press and cnn that the white house is about to tell the ruler of syria to step down. and from cnn that similar calls from the president to step down could be coming in the coming days from other leaders.

secretary of state hillary clinton, live coverage at 10:00 a.m. on c-span2. back to our f.b.i. series we have been doing the whole week, focusing on different aspects of the agency. monday we talk about tactical operations, and on tuesday, the role in counterterrorism. wednesday, the budget and the programs. tomorrow will be forensics and profiling. we will be live from the museum in washington, d.c. today, commenting cyber attacks and cybercrime. shawn henry is the assistant executive director of the fbi. let me just began with director summers testimony this where he talked about the threat from cyber attacks. according to a fox news report,

in 2010 alone, the u.s. government was subject to over 300,000 cyber attacks on its infrastructure. according to some government officials, there have been over 100 attempts by foreign governments to access sensitive data from our government. describe for our viewers the threat that is out there. guest: i think it is important for people to understand the stage, what the internet is all about. it is arguably the most important ssingle innovation technically in our lifetime. the amount of data transmitted throughout the internet, stored on the internet, has really revolutionized the way we do business. because of that data, when i talk about data, intellectual property that businesses use every single day, financial data, personally identifiable information that we use, to access your account, do business, shop online, do your banking, our military secrets, some of the next-generation

weapons secrets -- that type of data being available is attractive to adversaries. terrorist subjects, people sympathetic to the jihad thi ca, foreign governments interested in collecting information to help their economic infrastructure in their countries, and organized crime groups who are interested in pilfering that data to bolster their organized groups. we have lost billions of dollars financially. we have lost billions of dollars through our intellectual property loss. it has caused a dramatic decrease in our economic capabilities in some respect. from a national security perspective, because of the type of information that has been lost, we are less safe as a nation. host: what about the threats to

infrastructure, hacking into the intellectual electrical grid and otherwise? guest: the ability for an adversary to try and intercept those communications or infiltrate the networks to run those infrastructures would have a cascading effect and impact on this country. if we were to be without electricity in a major city for a protracted period of time, we all saw what happened in hurricane katrina in new orleans. after just a few days, there was civil unrest in the city. people were without food, unable to pump gas. it was hard to find water. those are the critical infrastructures that supply us with our necessary day to day infrastructure. host: does that number sounds correct, 300,000 a tense, cyber attacks? guest: it actually sounds low to

me. it is hard to calculate. there are millions of packets that fly around, billions of packets of data that fly around the infrastructure on a daily basis. every single network that is connected, every single device connected to the network is susceptible and potentially vulnerable to attack. host: what would be the impact of a cyber attack, a successful one, on the electrical grid, or some other example? guest: there are a number of different consultancy's that have estimated the impact of the attack. some say it is tens of billions of dollars annually. a recent study was done by a consultant and the last month that said in reviewing a number of companies that the annual cost was about $5 million a year, and that they had lost data on an average of once per week. they had suffered an intrusion and lost data. so the cost is calculated based

on the cost to protect the network. it is based on the cost of data that is actually lost. the cost of mediating the network, the cost for lost business opportunity. when your network is down, you're not able to conduct business. host: so millions of dollars? guest: billions of dollars. host: what is the fbi doing, as we speak, to thwart any kind of attack? guest: the fbi's role is threat mitigation. how can we identify who the adversaries are and how can we use our tools to try to mitigate that threat? with organized crime groups, there are groups that operate, and many out of eastern europe, who are operating on line, collaborating. they are attacking our financial services sector, retail infrastructure, and they're stealing tens of millions of dollars. our job is to identify who they

are and to use our law enforcement capabilities to coordinate with foreign partners to actually take them off line, take them out of the game. we do that and disrupt those activities and those groups by arresting people, by sharing intelligence with our foreign partners, and they can use their authorities to take some of those groups offline. that is one of the ways. there's also national security. we talked about the foreign intelligence services. the fbi has a law enforcement authority and a national security authority. we can collect intelligence and share that with our partners. we can use their authorities to identify who the adversaries might be. host: give us a visual for people who are thinking about computers -- i think there are 1000 agents in the fbi working on cybersecurity, cyber threats? guest: there are agents as well

as analysts. we have computer scientists, people who do forensic evaluation. the number is closer to 1500 personnel. host: what are these people doing? what are the different aspects of trying to forge a cyber attack? guest: the most important part is identifying aan attack that has actually occurred. that means chordata with security, -- that means coordinating with security and the private sector. that means collaborating, sharing information with them, so we can identify the threat and go after them. host: who is the threat, and which countries are we talking about? guest: there are dozens of countries could have an information espionage -- who have an information espionage program that collects information off of the networks. there are dozens of organized crime groups operating throughout the world.

your viewers might be surprised to hear about how these organized crime groups actually operate. when we think about organized crime in the traditional sense, you think about "the sopranos," guys operating in a back room selling drugs, loan sharking. we see organized groups that get together online in a virtual environment. we have seen criminal groups that have that other co- conspirators online, never met in the physical sense, in each of those individuals have a very specific capability. one might be the person who designs the malware that reaches into a network. one might do the reconnaissance to identify the most vulnerable networks. one might turn pilfered data into an economic advantage and monetize it. these groups that have never met each other before operating in multiple different countries caused a significant threat to infrastructure.

host: back to this fox news article that i referred to earlier. it notes in here that the united states government is planning to spend upwards of $13 billion over the next five years to try to keep the government's most sensitive data away from cyber hackers, cyber attacks. if you look at the fbi's budget this year for cybersecurity, it is about $285 million, approximately, agents. -- two hundred $85 million, approximately 1000 agents. -- $285 million, approximately 1000 agents. if that is correct, what do you see as the budget for cybersecurity. is it going up? is it enough right now? guest: there is a comprehensive plan through the administration. it is a government response. i think we have seen our budget

go up, increasingly over the last five years in terms of both personnel and non personnel resource in and enhancements. that has been valuable. the threat that we see has been growing. it is not going away. it becomes more sophisticated and more advanced, requiring us to be more sophisticated and advanced. we will see increased resources deployed. host: democratic caller from easily, south carolina. caller: how are you doing today, mr. henry. i cannot hear you. host: we are listening. caller: considering the money we are spending, when you really look at the internet and cyberspace, i want to know how your agents feel about the fact that people can come in, do not

do anything or say anything, and it seems like there should be a penalty for them to do anything in the world. host: what is the crime, and what is the punishment for a potential cyber attack? guest: there is a computer fraud and abuse act that is currently in place. there is current legislation on the hill that is being discussed, more of a comprehensive plan. certainly deterrence is critical. the ability for us to arrest people to determine or demonstrate to them that some of the activities they are involved in are illegal, take them off the playing field, it provides us with a much stronger advantage to mitigate that threat. host: can you give us more details about what congress is talking about, a more comprehensive plan? guest: this is legislation on the hill. congress has been working on this plan for a while and they recognized the significance of the threat. i have been on the hill and have

spoken to different committees and members about the threat. they are raising the deterrence levels of the penalties to raise them to a more substantial level. host: lancaster, pennsylvania. john, independent, next. guest: greta, you could conduct this interview with anyone in the nation that has the information, and they would say the same thing. let's have some balance between fbi, cia, the defense department. we're hacking countries all over the place. guest: the caller is talking about other agencies. my role in the fbi is threat mitigation, the attacks we face here in our nation. looking at to those adversaries are. can we share intelligence that we collect with the department of homeland security and others to help make this country safer? host: are there other agencies

outside the fbi that do that sort of thing? guest: i do not have information about the u.s. intelligence capabilities that this gentleman described. host: from the local washington journal," back in may, "sat -- from "the wall street journal," back in may, the pentagon responded with military force. what does that mean for the fbi as a law enforcement part of that equation? guest: role is both law enforcement and national security because we cover both of those areas. in addition to arrest powers, we can share information with the intelligence committee. the piece you are talking about in terms of the department of defense response, the administration has stated that our critical infrastructure is a

key part of our national security. it is a critical asset and we rely on its function, and the u.s. government will look at all forms of response if that asset is threatened. host: we go to john, albuquerque, new mexico. a democratic column. caller: enjoy your guest. it has been so and lightning. i wish they would talk about it more because they really are in the zone. i feel like the independent out there -- the social network, a group of young people put together a social network, facebook. a group of young people can attack on online entity and institution. i have a lot of smart young people around me in new mexico that when i had a computer problem i go get my ninth grader. he pushes this, does that. i got scant five years ago by a

group working out of florence, italy. they were called wholesale brands, they were showing shoes, and you could buy a case of the shoes for $1,500. you could sell them on ebay. the trouble is, you go on ebay, with their beautiful pictures, you buy the shoes, you send them your money, and they scam you. i called scotland yard, scotland yard spoken little italian. i talked to the italian police. that did not go well because i do not speak much italian. nothing is done well -- nothing is done to these cameras. host: what is your question? caller: the fbi believes they were al qaeda terrorists working out of itsitaly scamming people out of $2,000 or $3,000.

guest: the caller is referring to internet fraud that takes place. it is prolific. traditional organized crime groups have migrated there. they have the ability to access such a greater volume of potential subjects. for us, the international opportunity for us to work with our partners is critical. some of the things we have done internationally, working with the italian, the spanish, the turks, romanians, estonians, and others has made it a much stronger situation. this is a pervasive problem in our ability to work internationally so we can identify these culprits and bring them to justice either under u.s. law or international law. that is an area we are engaged in. host: our guest has more than 20 years of experience as a special agent in the fbi and currently heads up the response services

branch of the fbi. there are four divisions under you. do all these divisions focus on cyber? guest: they do not appear in the criminal division focuses on public corruption, white-collar crime, violent crime, and the like. the cyber program focuses on computer intrusions were people are hacking into networks, what we have been talking about here today, as well as child exploitation and internet fraud. i have an international operations division that focuses on our partnerships overseas. we have a fbi agents deployed into 75 countries around the world, in indices and working with our international colleagues. our critical incident response group is involved in critical incident response teams and so forth. host: good morning, richard, from wisconsin. caller: thank you for c-span3

what i am going to talk about is basically -- thank you for c- span. what i'm going to talk about is basically drop everything, this is a red alert. we're talking about the magnetic pulse threat. there is an author named drew miller. his book is called "rohen nation. viruses.ing about the i will explain to the american people what i'm trying to explain. i'm talking about the solar flares of the sun, that in 90 minutes could take out our grid system in our country. host: that was richard. here is a tweet -- "sir, part most breaches -- aren't most bridges and security perform from inside the firewall?" guest: i think the viewer is referring to the insider threat.

i am talking about primarily remote access attack. there are multiple ways and asked for seri -- an adversary can attack. they can get remote access from their living room come from mara -- from anywhere in the world. people administered in the work, employees, somebody who may have gotten access to the network by being part of a corporation. they provide a significant threat because they have already breached the perimeter. those administering that data certainly pose a threat, which requires a government agency, the private sector to become vigilant in the people they are hiring, making sure they do their due diligence. host: kerry from -- a

republican, you're next. good morning. caller: i was wondering how they were going to protect our systems from things like wikileaks . guest: when you look at something like wikileaks -- and that is an ongoing investigation, so i cannot comment specifically on that -- it really is incumbent on the odors -- on the owners of data to ensure that those could have access to it have been fully vented -- vetted, and our policies in place to make sure that the integrity is maintained and that the data is shared according to a corporate protocols. host: you cannot comment on ongoing investigations. i want to show our viewers this reference to lawmakers wanting a briefing on shady cyber attack.

lawmakers are looking for more information about operation shady rat, the cyber attack that targeted more than 20 government organizations and companies in 14 countries. wanting to know whether having a conversation about it would hurt or harm cybercrime, combating it. why does it hurt having a public discussion about it? guest: i think that the public discussion is necessary. that is why i am sitting here talking to millions of viewers. it is critical for people to understand the threat. the particular issue you are describing, shady brat, standing for remote -- shady rat, steny for remote access tool -- i think the dialogue is critical. i do not think the public

understands how vulnerable they are, how vulnerable their data is, at how critical it is for that to be protected. the loss of that data, not only to the entire country, but the impact it has on them individually. host: i went to the homeland security website for their 2012 budget request. they are asking for $233 million for federal network protection, another $41 million for i the security assessment. another $24 million for education and training, etc. and another $80 million for cybersecurity, and research. when you combine that with the budget for the fbi, is their redundancy going on? why are there two different agencies looking at this issue? guest: the department of homeland security is really in protect mode and consequence

management. their role is really looking at protecting government networks. the fbi possible is different. it is in threat mitigation. there is absolutely opportunity to share information and intelligence so those two organizations make each other stronger. there is information in the course of our daily investigation about developing vulnerability, about areas that may be exploited. the department of homeland security might not have visibility on. because we have an exchange of personnel in each of our agencies, we are able to share that information so they can distribute to others in critical infrastructure and raise their defenses. it is not one or the other or redundant, if it is the sharing of intelligence across programs. host: is there a cyber command center? guest: are multiple centers currently in different agencies. there are personnel in the different organizations that are stationed in each of the centers, so there is a sharing of information. there is a program in place to

connect those centers so there is a faster sharing of that type of intelligence. host: back to cyber crimes. there is a tweet from one of our viewers. "social networks play a role in tracking organized criminals. how many crimes are detected through social networks?" host: social networking is an interesting phenomenon we have seen explode in the last couple of years. one of the ways we track criminals is not very much different from the way we have tracked criminals for over 100 years. the technology has changed the game a little bit, but there are a lot more similarities than differences. what we have done historically is infiltrated groups. we have collected information from coal operators, people who have information from -- from cooperators, people who have information about different

groups. social networking is a place where we can identify bad guys involved in attacking u.s. infrastructure, and by identifying them it provides us an opportunity to under -- to attribute an attack to them and use law enforcement authorities to take them out of the game. host: an independent, akron, ohio. caller: mr. henry, is there an organization or a name you can give me that can assist me? i had my computer tacked to the point of not being able to travel to a u.s. -- at -- i had my computer hacked to the point of not being able to travel because of -- it was done with the assistance and permission of the command leadership and diplomatic corps. as an officer and commander, i witnessed crimes against children happening. there were five immunity laws giving rapists and murderers

inside the military to continue their activities, and there are large networks allowing this and torturing and abusing victim witnesses. guest: you're talking about an issue with your personal computer, certainly people have a responsibility to maintain security on their individual home computers and their networks, similar to the way you protect your house, ensuring you have adequate locks, and alarm system, you keep the outside exterior lights on. to the extent that you have had a breach on your personal computer, there are many various security firms that will provide an assessment and a remediation for that problem. host: here is another tweet question. "should i have an expectation of full privacy rights when i am on-line?" guest: i guess it depends on when you are -- where you're going for privacy. when i talk about the information being lost every day, that data is not private. once it leaves your network and

is available, someone has stolen it and posted it. you do not necessarily have privacy. within the fbi, from a government perspective, civil liberties and privacy are critical components of very thing that we do. but i think it is important for people to understand, when they put information on to the network, there are other people who can see it and view it. much like when you go to the supermarket and use a car for a discount, you are putting into circulation data about what you're buying. host: how easily do companies work with your agencies and other agencies to help you resolve the situation? if there is a vulnerability, and attack, and you need a company to respond, how does that work? are they doing it efficiently

and quickly? guest: companies more often than not recognize that their ability to mediate this, our ability to mitigate the threat relies on the quick sharing of information. historically, companies were somewhat reluctant to report because they felt it would impact their customers, it would impact their brand, and that people's confidence in their ability to do their job and protect that data. as this becomes more prevalent of a problem, as it is communicated and people become more aware, companies realize they are not the only ones being victimized, it is happening really to everybody. for them to come forward and share that information puts us in the greatest position to respond quickly and effectively. host: give us a percentage on how adequately the company's that run or own the comfrey knee -- the country's infrastructure are prepared for a cyber attack.

guest: it is difficult to say what that number would be. sharing on a program such as yours here, to let people understand and identify what the concerns should be for them. when senior leadership and organizations realize the potential liability, they realized the vulnerability is inherent in their networks, and they realize these types of threats threaten their very existence. when the senior leaders recognize, and i believe they are getting to recognize that, they are strengthening their defenses and becoming more tailored. alert.ming more host: we go to barney on the democratic line. caller: they do not pay a lot of money. i know they probably just do it to try to make a call.

why couldn't the government and together -- band together for the cause of just say we are going to come together? why does it cost so much money? host: are you following that question? guest: if you are talking about people coming together, in come and cost goes back to what we were discussing earlier. were budgets can be leveraged, capabilities can be leveraged across other agencies and we are much stronger. if we are sharing intelligence, sharing capabilities, sharing technology, sharing advances, we are much stronger that way. host: james parker wants to know, "what about cookies that are placed on your system to spy on your online behavior? any move toward more regulation?" guest: cookies are small pieces of software that provide

information back to companies. when you log in, a company is looking at your browsing habits. we give up privacy oftentimes because we get an advantage for it. when people use online media, when they use online applications, some of that data is susceptible. host: we go to larry next in florida. caller: when a threat has been identified in a foreign country, what is the option for enforcement? does it have to go through the fbi as the law enforcement officer? do the cia take action directly? how is it handled when you know who it is? guest: when a prime is committed -- when a crime is committed internationally, when we're talking about the internet, it is a worldwide network. many of the cases that we see

begin or end overseas. our ability to coordinate with for law enforcement agencies is critical. one of the things we have done in the last few years, i talked about our program where we have agents deployed in 75 countries around the world. we have also started to embed fbi cyber specialists into the law enforcement agencies of another -- of other countries where we have seen threats thrive in the last couple of years. we are in a much more advantageous position by doing that to share more expeditiously, to respond to an emerging threat, and better protect the country. it comes down to partnerships, collaboration, cooperation, and intelligence sharing with law enforcement policies -- partners. host: another tweet online, "which is a bigger security leak, cell phone technology or wired internet?" guest: i do not understand the

question. host: with new technology coming on constantly, what gives you pause? what did you see that could make the united states or it infrastructure people vulnerable? guest: that is a good question that might go to the last week. 10 years ago the threat was our computer networks. people had a central processing unit, a cpu, on their desktop, and it was wired and it was connected. that was the threat, how could somebody breach that network. in the last few years we have seen an expansion of the perimeter. through the advance of technology where everybody is carrying a blackberry or mobile device, they are all internet corrected -- internet connected. the areas for vulnerability have increased exponentially because there are so many more devices. imagine if you're trying to protect the building, and there are a couple of doors on it.

relatively easy to protect. you have a defined area that you can protect. if you had 100 doors or 1000 doors on that same building, the ability to protect it increases substantially. that is what i see with the -- people's cars are connected with the internet where they are communicating with their service department, communicating about driving patterns. anything that is connected to that network is potentially vulnerable. host: frank, an independent from paris, arkansas, good morning. caller: good morning and thank you so much for taking my call. the opportunity to speak with mr. hendry is very much appreciated. our industry, our national health care industry, has been subjected to, and our customers, for that matter, a horrible crime of cyber fraud that has been going on for 10 years now. we have been able to bring a

class-action lawsuit against these frauds in the superior court of arizona, but they continue to perpetrate their fraud, it seems, with impunity. we are deeply concerned about the tremendous harm it is doing, causing fills a poll this -- causing physical illness wikipedia has a note under will spare a -- or simply go to goj itrees.com to get the archives about this. it is an ongoing class-action suit going on for more than 10 years. what can we do to stop this? we need federal interdiction. host: we will get a response. guest: if you are talking about health care fraud, if you have not contacted your local fbi

office, it is an area we are responsive to and i encourage you to do that. when we talk about the type of information that is vulnerable, people's information -- this resonates when we talk about their health treatment. the type of information we are very clear to protect, there are regulations in place that protect that data. health-care information being susceptible to pull three or exploitation is something to be concerned about. host: here is jessie ramirez with this week. "why are so many hackers that target citizens computers from overseas?" guest: there are certain countries that have gotten into the technology game early on. it is certainly not related to a particular country or geographic area of the world because there are a lot of hackers within the

united states doing the same types of things. we have seen this increase in these eastern european gangs, and it is certainly not relegated to those areas. host: so cyber attacking is an industry, a profitable business? guest: computer exploitation is absolutely a profitable business that organized crime groups are utilizing to enhance their bottom line. there is no doubt. host: how have you seen that grow over the years? guest: it has grown substantially over the years. more vulnerability, more business moving to the networks. more adversaries realize there are opportunities there. there is a saying that goes back to a few decades when a favorite bank robber asked -- when a famous bank robber was asked why did he robbed banks, he said because that is where the money is. i have seen financial

institutions that have lost tens of millions of dollars from these attacks. host: in one day? guest: yes, in one day. host: robert, a republican from athens, georgia. caller: will this help keep the unconvicted sex offenders from spreading their propaganda? guest: it is an area that we're focused on with our partners around the world, and it is a crime that is a of a significant concern to us. the types of defenses we're talking about, literally to those trying to reach networks, to infiltrate networks, and to take data out, to sometimes even destroy data or deny us access to that data. it's a different type of crime. host: grand