obamacare. "the cycle" starts now. but we begin with this air travel alert. nbc's tom costello is tracking the breaking details from our washington news room. tom, what do you have? >> hey, good day to you, krystal. here's what's going on at 12:15 eastern time. the faa announced it is prohibiting u.s. flights from flying into or out of tel aviv's airport because earlier this morning a rocket presumably fired by hamas fell within about a mile or so of the airport. no airport property was damaged, but that was clearly too close for comfort as a delta flight, delta flight 468 from jfk, diverted to paris. subsequently within very short order, other airlines were announcing they were suspending flights. at 12:15, the faa notice to

airmen prohibiting u.s. flights from going into or out of the airport. krystal, just now i've received word that air canada also is suspending flights. this is coming, of course, on the heels of mh-17 when the plane was shot down over ukraine after it kind of -- the argument is that it was continuing to fly over a hostile war zone, even when other airlines were deciding they were going to steer clear of eastern ukraine. so at this hour, no u.s. flights, and it would appear no canadian flights, into or out of tel aviv airport. >> all right. stick with us, tom. we're also right now following the latest developments in the downing of malaysia air flight 17 that you just mentioned. the white house is about to declassify intelligence proving the ukrainian government did not shoot down the plane, but that the missile was fired from inside the separatist-controlled area. the russian ambassador to malaysia and the russian defense ministry still insist a ukrainian fighter jet was in the area and fired the missile.

the u.s. hopes to settle that once and for all. today president obama paid his respects at the netherlands embassy in washington. the dutch, of course, are now leading the investigation after losing 192 citizens, the most of any nation. >> this is an opportunity for me to extend on behalf of all the american people our deepest condolences over the loss of family and friends and to assure the dutch people that we will work with them to make sure that loved ones are recovered, that a proper investigation is conducted, and that ultimately justice is done. >> the rebels have handed over flight 17's data recorders to international analysts, and some crash experts are on the ground sifting through the ten-mile debris field. but a european team says the debris has been moved since they were there on friday and the osce says large pieces of the plane, including the back end

and the cockpit, have been cut with power saws, possibly to look for human remains or the data recorders, but regardless, it is being viewed on the international stage as the rebels tampering with that evidence. remember, this is an active war zone. investigators are working despite rocket fire occurring in the distance. and as for the flight victims, their remains are now out of rebel control and will be flown to the netherlands tomorrow. the dutch prime minister says it could take months to conclusively i.d. the remains. one victim's father is blaming putin for his daughter's death, posting this heartbreaking letter online. >> thank you very much, mr. putin, leaders of the separatists, or the ukraine government, for murdering my loved and only child. she has been shot out of the sky. regards, whose life is ruined now. >> heartbreaking. getting back to you, tom, what should we expect from the white house in terms of declassifying this intelligence today?

>> we're led to believe this may include some satellite imagery, but beyond that, i don't have any specifics. i would say that the fact that the dutch are leading this investigation is viewed as a good sign. the dutch, of course, are among the most educated and proficient in the world at dealing with technology. they're viewed as generally an objective arbitrator in international affairs. they're keenly viewed also as being unbiased and having run a clean government. i think this is probably a good step in terms of gaining international recognition and acceptance for whatever the dutch investigation leads to. but you're right. this is heartbreaking for that country, having lost two-thirds of the individuals on board that plane. we also understand that the black boxes are likely going to go to the u.k. for analysis, which would be in keeping with kind of standard protocol.

there are just a few select cities around the world, countries that, can read off of these black boxes. the british, of course, have a pretty advanced facility that they will be reading these black boxes off of. i can also report to you that the ntsb plans to send a second investigator to assist, potentially assist in that process, but that would be it. so far the u.s. has two ntsb investigators who are to assist in this crash investigation. but this is going to be a dutch/malaysian investigation. the americans, at least from the view of the russians, the americans are viewed at not being objective. >> all right. tom costello, we always appreciate it. thank you so much. and nbc's keir simmons is near the 10-mile debris field and joins us on the phone. the evidence is still not fully secured. what are you seeing there on the ground? >> well, it isn't secured at all, krystal. in fact, we were walk up to pieces of debris and look

closely at them. i have to say, as you'd expect, we haven't touched anything in the entire time we've been here, but we can get close to them. we could see long pieces of metal where the damage is such that it looks as if something moving at a high velocity has hit this metal from the outside in. you must speculate that would be shrapnel. the talk is that the kind of missile that was potentially fired at this plane is a type that would explode outside the plane and then throw, if you like, large amounts of metal at its body, puncturing it and therefore bringing it down. from what we saw, and i'm not a crash scene investigator, but from what i can see with my own eyes, it does look in places as if parts of the body of the plane have these dots across them of punctures that might be evidence. so there is evidence for these investigators to go and look at.

they got here. they are doing that -- they're beginning that process. it will take time. we saw them taking photographs and going to each of the sites, and there are many of them. and also people's possessions to look, to document what they are seeing. clearly, it's five full days since the accident happened. so they are here in most people's terms in parts of the world, it could be considered they are here late and not by any fault of their own. but they do have evidence to look at. >> all right. keir simmons in eastern ukraine. please stay safe. and let's bring in george friedman, founder and chair of the geopolitical intelligence firm stratfor. they say putin is far from finished. george, thanks for being with us. >> thank you for having me. >> so one thing i will say is the russian economy has been hit very hard since putin has taken an aggressive stance in ukraine since the invasion of crimea. russian stocks have lost $28

billion in value. is that sort of economic pressure ultimately going to be influential with putin? >> certainly, but we also have to remember that putin has suffered a massive disaster in ukraine. ukraine used to be a country run by a pro-russian president to generally tact along the russian line president the government is now pro-western. he still retains little bits of the ukraine, the crimea and a thin strip in the east. but from the point of view of russia, for whom ukraine is an absolutely essential buffer against the west, putin has massively mishandled the situation. and as such, that plus the economic situation puts him in a very difficult position. >> george, a lot of people are saying it's going to be really hard to make sanctions work because a lot of the russian leaders are so rich and they're so disconnected from what the average economic transaction is that they really don't care. part of this is underlined in a

fairly amazing tweet that happened right after the sanctions over crimea were announced that russia's deputy prime minister tweeted, send me your teeth ground in impotent rage. i mean, that's just amazing. i'm sure it sounded even better in the original russian. but ultimately, they really don't care. >> well, the sanctions we've put on are pretty trivial. particular individuals, they say you can only finance for 90 days. basically, the weakness of our situation is that the europeans have to agree to anything or else it's pretty meaningless. so, you know, when they talk about impotent rage, they mean it. because they see this as an act of weakness. they're also taunting the united states because the united states by itself can't impose sanctions. it's got to have european cooperation, and to a very great extent it doesn't except in

fairly meaningless ways. >> yeah, they're taunting the u.s. on sort of a dual-track strategy here, there are some notes of conciliation while they're also still going about some of their own messaging or what we might call propaganda. we saw a late-night video from putin trying to say something that might be appealing to the united states and then simultaneously this minister's meeting presentation that still went after the voracity of evidence that suggests separatist involvement. how does that two-track strategy work in the coming days if the intelligence seems to corroborate that they were, in fact, ultimately to blame? >> let's assume they're ultimately to blame. what happens? the europeans made it clear even in the context of this tragedy that they are prepared for only very limited sanctions. the u.s. has also had very limited sanctions. one of the things, as tragic as this is, it's not really the turning point for the russians because they can withstand the

shock and horror. and the russians are charging fairly or unfairly that the plane was being shadowed by ukrainian fighter planes and that was the original cause. i suspect they're lying, but it really in the end doesn't matter. what really does matter is the objective facts. the loss of the ukraine, an economy that's growing at 0%, even with $100-plus oil. >> from a political standpoint, if russia is, in fact, ultimately to blame here, where does that leave vladimir putin in term of his credibility on the world stage? will he have any left? >> he has lots of credibility. he is the head of the world's eighth largest economy. he heads an anti-american bloc. and he is an important player. you know, the tragedy of international politics is that credibility rests in power, not

in the last atrocity you've committed. so don't write him off. the more interesting question about putin is given the reverses he's suffered, not just in the economy, but in ukraine, can he politically survive? we take it for granted he's a dictator, that his rule can't be challenged. he may well be a dictator, but there are other people inside the kremlin, i suspect, who are really asking serious questions about his leadership. not because of the shootdown of the plane, nearly as much as the economic and geopolitical failures. >> absolutely. george friedman, thank you so much for your insights. and up next, a major blow to obamacare is rocking the political world this afternoon. the legal and political implications as "the cycle" rolls on for tuesday, july 22nd. setting up the perfect wedding day begins with arthritis pain and two pills. afternoon arrives and feeling good, but her knee pain returns... that's two more pills. the evening's event brings laughter, joy, and more pain... when jamie says... what's that like six pills today? yeah...

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the x-1 entertainment operating system. only from xfinity. we have breaking news as obamacare suffers perhaps its biggest setback yet. a federal appeals court in d.c. ruled today americans who got insured through the federally run health care exchanges are now eligible for tax subsidies. they are not eligible for tax subsidies. to break it down, simply, according to this ruling, obamacare's main financial incentive is gone. but wait, it actually gets more complicated. a second appeals court, this one in virginia, quickly made today more of a split decision, unanimously upholding the subsidy. bottom line, nothing about the health care law is changing today. but does this mean the supreme court is more likely to take the case ultimately? well, the white house is down playing at least one of these rulings. >> there's a lot of high-minded case law that's applied here. there's also an element of common sense that should be

applied as well, which is you don't need a fancy legal degree to understand that congress intended for every eligible american to have access to tax credits that would lower their health care costs regardless of whether it was state officials or federal officials who were running the marketplace. >> let's bring in now nbc news justice correspondent pete williams for what happens next. pete, what is the next step here? >> well, the next step is to go to the -- let the appeals process play out. the obama administration has already said it will ask the full d.c. court of appeals. today's ruling came from a three-judge panel. it will ask the full court to take another look at this. we might get the same line in the fourth circuit court of appeals. both the appeals courts did agree on this. the law is very hard to read. it's ambiguous. it's clear that the state exchanges can offer these critical subsidies without which many of the people who get their care from obamacare could not afford it. but the law is ambiguous about whether the federal government also has the power to give those

subsidies for the federal exchanges, better known as healthcare.gov. what the d.c. circuit said here is, you know, we've read the law, it doesn't give the federal government the authority, it ain't in there, and so it doesn't have the authority. what the fourth circuit said down in virginia is it's ambiguous, and in cases like this where we really can't tell, we defer to the federal agency in charge. that's the irs. and the irs says, yes, they do have it. so if this continues to be a split in the next several months, then supposedly it could go back to the u.s. supreme court, which of course two years ago rescued obamacare from another big challenge. >> all right. nbc's pete williams, thanks so much. let's turn now to jonathan allen, bloomberg's washington bureau choief for the white house. they've made it clear, they do not want to live in hypotheticals. we don't know exactly where this is going from here, but how are they responding to what we know

today? >> the first thing is what josh earnest came out and said today, that nothing is going to change for anybody today. the subsidies are going to continue to be paid by the federal government until the courts sort this out. i think what pete was saying earlier is interesting about the d.c. circuit court perhaps taking this on. these were two republican judges that voted 2-1 on the three-judge panel to invalidate this part of the law. that circuit is actually full of democratic judges. so if they all hear it, you may get a different outcome next time. i think what the white house is going to do is try to tell people to just chill out and wait and see what happens in the courts, which they think they'll have a good chance with now. there's a whole other issue, which is the politics of this. >> exactly. it's what i want to get to with you, jonathan. if this ruling goes through, taking away tax subsidies, the news today is obviously not good for democrats and obamacare. i actually see a scenario where republicans could be in a bind here.

ultimately, congress would have to put forward and amendment that democrats and republicans would have to vote on. if republicans are the ones pushing back saying we don't want to vote for this, the narrative can quickly shift to, well, republicans just don't support poor people. how are they going to manage that? >> i think there are a couple of issues there. first of all, i think what you're hearing from republicans right now, if you listen to the way they're attacking this, they're not -- at least the leadership, speaker john boehner and others, are not attacking this as a reason to attack obamacare, the law, so much as an overreach of the president's power. that's been an argument they've been trying to make, that president obama has too much power, that he's been taking too much power and the democratic congress is too pliant in allowing him to take that power, which is an argument for the midterms. if they start getting into the question of repealing obamacare, turns out a lot of americans don't agree with them on repealing obamacare. frankly, outside of the politics, what you see if this ruling goes through, is a lot of people who currently have health insurance and have it subsidized

are going to feel a huge pinch, either deciding to pay a tax penalty or perhaps by not getting insurance or having to pay more for their insurance than they are right now. so there are a lot of people affected by this. just directly you're talking about probably 4.5 million. >> yeah, jonathan allen, thank you as always. i want to bring it to the table. as jonathan was saying, no one is affected today, but this ultimately could have real implications here. i have heard that we do have a legal expert on our panel today. ari, i want to pass it over to you. what do you make of the two different decisions that came down today, and ultimately where do you see it leading? >> it's a great point here because it goes beyond what the politics are. but how do we understand this fight over obamacare? we feel like there's so many different cases here. this one is about critics seizing on basically an error in the drafting and the way they wrote this thing where in one position, they basically refer to subsidies for exchanges by a state. they forgot to add or subsidies offered through a federal exchange, right? so what you have in the fourth

circuit ruling here is, i'm just going to read from it, they say in defending obamacare, it's not surprising that in a bill of this size, 900 pages, there would be one or more conflicting provisions. this has happened before and typically courts defer to the agency interpretation. so we heard john allen saying, oh, republicans complain that the agencies here, that they make an interpretation. typically, you're supposed to defer to that. the fourth circuit does. the d.c. circuit doesn't. they say, we do not disregard statutory text lightly. and that is the d.c. circuit republicans there basically saying, hey, we kind of know this is totally ridiculous because we're implying that the democratic congress slid in a technical i city to undermine t

purpose of this law, but we're going to stick to these words even if they seem absurd. that's the part here i think a lot of people will find the d.c. circuit ruling absurd and more importantly for folks concerned about activism, a real departure from the usual deference courts are supposed to give. >> that certainly seems to be the case. on the substance of the criticism here of obamacare, i thought there was something really noteworthy in the injury that the plaintiff in the d.c. circuit court case was said to have suffered. he's a west virginia guy. he makes about $20,000 a year. he said basically he didn't want to have to pay $21 a year to have health insurance. he wanted to be able to have the freedom to remain without health insurance. now, they found, okay, yes, this is a real injury that you are being forced to pay $21 to have health insurance, but when you put that up against the millions of people who would like to have health insurance and who are

being denied the freedom to have access to health care, i think it lays bare the absurdity and lack of really morality in the arguments being made against obamacare. i mean, i just can't understand an argue where no matter where you are on the ideological spectrum you are cheering for millions of people to lose access to health care. >> no, absolutely. millions of people have gone bankrupt from medical expenses. so being forced to have health care is not an injury. going bankrupt is an actual injury. you guys both talk about the ridiculousness of what happened in d.c. and in virginia they actually said it right talking about a tortured, nonsensical construction of a federal statute. just to understand how small and petty it is, this incredible sentence from senior judge andre davis. if i ask for pizza from pizza hut for lunch but clarify i will be fined with a pizza from

domino's and then specify i want ham and pepperoni, my friends who returns from domino's with a ham and pepperoni pizza has still complied with a literal construction of my lunch order. that's this case, the plaintiff's case is very small and petty. it comes down to a technicality and not the obvious manifest destiny of the aca. >> well, this is the beginning of a very long road. what often seems great in theory isn't always perfect in reality. >> also, pizza. >> also pizza apparently. up next, the very latest from the mideast. all u.s. flights to israel now canceled amid rock fire and bloodshed. we'll bring you a report from israel. that's next. new. [ woman ] that uncertainty of what's to come. ♪ ♪ a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms.

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this morning. now several other foreign carriers have canceled flights as well. we just learned moments ago air canada is one of them. while passengers are stranded, secretary of state john kerry is in cairo pushing for a cease-fire. kerry is urging hamas to accept a proposal put forth by egypt attempting to stop the bloodshed in gaza. 606 palestinians have now been kill along with 29 israelis. nbc's martin fletcher is in tel aviv with the latest. martin? >> reporter: hi, krystal. well, not only the american airlines and the canadians but also the german airlines, the dutch, the french, swiss air, austrian air. they've all canceled their flights. it's not clear for how long. of course, tensions high because of the downing of the malaysian plane in the ukraine. but what happened here was with the rockets from hamas flying into israel, one of them fell about a mile from the airport here. it did damage to three houses

only a mile away. for that reason, the airlines got nervous. it's the first time, by the way -- this has happened before, i should point out, in 1991. the foreign airlines also stopped flying into here when the iraqis were firing scuds at tel aviv. it's happened before, but the israelis issued a strong reaction to the move by the american airlines, which then was followed by many of the other airlines. the israelis said that this is simply a reward for terror, and they called on the international airlines to resume their flights as quickly as possible. now, this is all happening to a background of peace negotiations. the secretary general of the united nations, ban ki moon, is in israel. secretary of state john kerry in egypt trying to bring the two sides closer together, hamas and israel. but there's not much sign of any success at the moment. instead, the fighting is intensifying.

hamas rockets flying into israel. israel moving forward slowly, steadily, now not only in the northern parts of the gaza strip but also in the south. heavy fighting between israeli ground troops and hamas fighters in both of those areas. at the same time, all eyes reason the diplomatic negotiations, hoping for a truce, krystal. >> all right. thank you so much, martin. joining us now with more on the crisis, stephen cook, senior fellow from middle eastern studies at the counsel on foreign relations. stephen, let's start with those flight cancellations. what sort of an impact does that have on the israeli psyche and the way they're viewing this conflict? >> well, as martin fletcher pointed out, the israelis immediated responded to say this is a reward for terror. of course, if i was holding a ticket on one of those airlines, i'd be happy they were taking precautions to keep me safe. this is the height of the israeli tourist season, so it's likely to have an impact on them. but it is also likely to have an impact on the battlefield.

this is a reason for the israelis to widen and broaden and increase the tempo of their operations. from their perspective, you cannot drop rockets within a mile of their only major international airport and not pay a dear price. so expect the fighting to go on, no matter what diplomatic talks are happening in egypt. the israelis and hamas continue to have an interest in fighting this one out. >> yeah, and steven, you know, we've always relied on allies in the region to broker peace. jordan, egypt. not necessarily the case this time around. as you have been writing, you say, the egyptians seem to believe that a continuation of fighting, at least for now, best serves their own interests. not really helping anyone but themselves. so the question now is, who is left in the region to really help broker this peace? >> well, there really isn't anybody left in the region. what's left is secretary kerry on his own trying to get people together and convince everybody that their interests are actually in a cease-fire.

if you look at the way the region shakes itself out, of course egypt is aligned with the israelis on this. the jordanians aligned with the israelis. on the other side, you have qatar and turkey aligned with hamas. everyone says they want a cease-fire, but in fact, all of their interests are in the continuation of this conflict for at least a little while longer. >> toure, go ahead. >> steven, the u.n. is saying that of the 600 palestinians who are dead, three-quarters of those are civilians. of course, part of that is because hamas puts its military assets near its people and also part of that is because palestine is one of the most densely populated areas in the world. putting that aside, when you have this sort of a high civilian death toll, aren't they just inviting the next generation to be more enraged and want to come back when they can? >> this is absolutely one of the most gut-wrenching aspects of

this round of violence between hamas and israel. the number of civilians, particularly children killed in this conflict, is unconscionable. what is surprising to me is that both israelis and palestinians don't really understand the roots of their rage at each other. the israelis and hamas are seeding ground for further conflict down the road. you're absolutely right. it's hard to imagine how when we eventually get to a cease-fire that anybody's going to really be interested in that elusive goal of finally settling the conflict. it will be just waiting for the next round. and generations of israelis and palestinians will continue to hate each other and seek military solutions to their conflict where there is no solution. >> pessimistic outlook there. steven cook, thank you so much. and up next, iran, israel, and gaza, russia and the ukraine. of all the crises unfolding

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click or call. already been a busy year. we're just halfway through. so how will history look back on 2014? a year of fighting between israel and hamas and fighting between russia and ukraine and isis taking over half of iraq and iran's nuclear ambitions appearing to maybe be thwarted for now. which one of these events will still be resonant in 20 years? ceo and editor at "foreign policy" magazine. the latest piece examines this moment of potentially unprecedented instability. in the moment, there's always a bias for humans to think, this thing that's happening right now is historically resonant. of course, almost always that's not true. all these events seem to me just moments in time that are part of larger ongoing dramas. that will continue going on perhaps for years. so what, if anything, has been

so disruptive that it will be historically resonant decades from now? >> well, i think you've got to look at what is allowing all these things to happen. you're right. all of the conflicts that you just talked about are decades old, some of them are hundreds of years old. one of them at least is 1,000 years old. but we've got them all erupting now for a reason. the reason is that the kind of head table of the global community is empty. the united states doesn't want to lead. china is not ready to lead. russia's disqualified itself from leadership. the eu is so fragmented. it's dysfunctional. it can't take a unified position on anything. so the stabilizing forces in the world right now have retreated. that's allowed this to bubble up. it could get worse and we could be talking about that 20 years from now. >> yeah, the head of the table in your analogy is open. and there's a lot of folks trying to pull up chairs well

beyond the traditional nation state system. you recently were writing a lengthy article about your discussions with -- i'm sorry. i'm blanking. the adviser to jimmy carter. he basically talks to you about how this is reminiscent more of the 30 years' war and that era. and you talk about the idea that there's rising religious identification as the principle motive for political action. tell us about that part of your conversation and how that relates, that 30 years' war sort of precedent in a lot of the issues we're seeing in the middle east. >> well, i think he was getting at the fact this is a moment of great instability, and during the 30 years' war, you had the reformation bubbling up. you had the tension between the church and state. and we were looking for a new order. it ended up being the nation state system which we lived with since then. now he's suggesting that we're seeing similar kind of struggle

on the church side, particularly in the islamic world, and a lot of our international institutions, whether it's the u.n. or the institutions that deal with things like nuclear proliferation are old, they're weak, they don't have enforcement mechanisms. they're pieces missing in the international system. so we are now living with the consequences of that, and it's not made any easier by the fact that the traditional stabilizers, whether it was the tension of the cold war or the u.s. and the period after the cold war, they've retreated. and so smaller actors and regional stages like isis can cause an enormous amount of upset, and there's nobody to push back at it. >> yeah, david, let's bring it back here to home. if we think about how we will talk about our handling of foreign policy 20, 30 years from now, politico has a poll out this week, and it shows that republicans -- voters actually trust republicans more than democrats a the this moment in time. republicans historically have

done better on foreign policy, but this actually struck me as a bit surprising when you think about 2008 at the end of the bush years, the republicans were that the air lowest point. obama couldn't have been any higher, talking about getting us out of conflict abroad. take a look at this chart. it's interesting because it shows from 2008 how quickly the democrats have dropped in trust on foreign policy. it sends a signal to me that americans have lost confidence in president obama when it comes to foreign policy. is it your sense that this is a moment in time as toure was talking about, this is just the heat of the moment, or will we be talking about this period in our history 20, 30 years from now as somewhat of a disaster for the president and the administration on foreign policy? >> well, first of all, it's hard to do foreign policy right. you don't control everything. there are global events. there's luck. there are things that affect how the world works that the united states can't change. but you have to look at the past year and say it has not been a

successful one for the u.s. in terms of foreign policy. we didn't have a clear reaction to the crisis in egypt. we stepped up and then stepped back on syria and may have made it worse. we watched as iraq descended into chaos. libya is descending into chaos. there's a war now between israel and hamas going on in gaza. you've got this worsening situation in ukraine. the united states doesn't look like we're able to pull our allies together. and of course, some of the responsibility lies within the allies and some of it lies with the bad actors that are causing these problems. but the president seems disengaged. he doesn't seem like he's coming up with solutions. and he's paying the price for that, and i think unless he's got a major change, he's going to be seen in the context of the failures of this past year for a long time to come. >> david, thank you very much. >> thank you. up next, ten years after the 9/11 commission's report, the authors are out warning of the new threats that we face.

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there is a new threat assessment there calling for improvements in three key areas. congressional oversight of the dhs, transparency for those threats we face, and an improved cyber security strategy focused not only on data collection and analysis but also on protecting our civil ib ler tis. over the past decades, hundreds of billions has been poured into the intelligence community to improve interagency communication. one corporation that's playing a significant role nowadays is the online retail giant amazon. a new article "daring deal" is the cover story in this month's "government executive" magazine. it's part one of a three-part series we're doing this week. you reported here that the cloud in this article, you say the cloud may actually achieve what thousands of bureaucrats have failed to do, to achieve some kind of faster, real-time interagency collaboration.

what do you mean there? >> well, i think -- so it does go back ten years. this is a big shift for the intelligence community. they want better information sharing, and this is a big part of it. so how this cloud will work is that it's connected to -- it's sort of like hanging off their network behind the intelligence community firewall. each one of the 17 intelligence agencies can use it for a variety of needs. things like data storage, information analytics, which is a very important thing now, given the amount of data we know the intelligence community collects, and for collaboration between agencies. so in instances where national security is important, where there could be an incident, there's a real-time collaboration tool there. that's going to be one of the chief uses here. >> and yet, frank, there was a big division over whether or not this going forward with amazon and with cloud computing in general was the right direction. tell us what the opposition was saying here. >> well, the ic has a history of

doing things their own way. they do use a lot of commercial off-the-shelf technology. on this scope, not so much. and so reaching out to a commercial vendor for a technology cloudis, you know, i reputation of not being as secure, it's still quite new. but that was the big challenge here, and so there was a big debate that went on for a couple of years before they decided this is what we want. the main reasoning being cost plays a role, a data center on average consumers about 100 times more energy than an office building of the same size. >> wow. >> and then innovation, amazon killed it here with innovation, they i think last year upgraded that system i think 200 times. the rest of the ic can make use of any of those upgrades any time they have their choice there. so they have the continued drive to innovate and it's made easy for them, instead of having to do it internally, they have a

company here that can basically do it for them and they have the option to use that. >> on the flip side of this, doesn't this then potentially lead to some real security concerns? >> yeah, that depends on who you ask. >> we're asking you. >> i honestly think the cia was very adamant in talking to a lot of people what previously worked there, they see this at least as secure or more secure than their own internal data centers. a lot of cloud companies nowadays will make the argument that a cloud can be more secure because there's fewer end points for intruders to access. this is basically like what amazon does for its private skek sector clients, but only behind their -- there's a lot of security built in and because this is amazon, because this is the cloud, an lit ticks are --

all of their activity is monitored and monitored in real time. so everything is logged. >> frank the government could have built their own cloud, but they turned to the silicone community, is this something the private sector can do better than government? >> i actually think you're spot on. i think cloud has been slow to adopt in government because of the security concerns that you hear all over the belt way. but i think this is a great example and it really became a big deal last year when folks saw that, hey, the cia was one of the most security stringent agencies in the world. they said, hey, come build this. >> and that frank leads to the final question which is can amazon build a healthcare.gov website.

>> you're so excited to say that. >> i should also mention tomorrow we do have more from government executive magazine's in-depth look at how tech is improving our national security including the snowden act. but tune back in right after this commercial break, up next, enter through the corridor. artb. ♪ and that's why i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. >>you can't beat zero heartburn. prilosec otc. one pill each morning. 24 hours. zero heartburn. definitely not routine. and that can take a lot of energy. introducing nature valley breakfast biscuits. four biscuits, 26 grams of whole grains

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in order. in order to get a nice tax break, but heavens, can you imagine the lords of the universe mixing with those takers from the 99 percent, or 44% or whatever percent they may have contempt for, children with lunch boxes headed to public school, or worse yet, no lunch at all because they're on reduced price lunch the tennant they will have no access to the amenities, sharing a pool with them, not enough color lean i guess, one defender of this plan put it like this, i think it's unfair to expect very high income homeowners who paid a fortune to live in their building to have to be in the

same boat as low income renters who are very fortunate to live in a new building in a great neighborhood. we reach down to x-tell, they declined to comment. the more i think of this luxury building with it's core door, it seems to me an apt metaphor for the country. for some there's a gimded front door for others there is a back alley entrance and a condesce condescending you're lucky to have that attitude. they need your space for their media viewing room. and push you on out to the street. and as our experiences become increasingly distinct, that we're living in the same country, the community or the same building.

we occupy the same space but utterly different realities and as we live these segregated lives, we become less human to each other. you see this attitude in the entrenched folks -- see it in the greedy desire forever lower taxes when you don't view year fellow citizens as fellow citizens, but rather as the other, why would you be interested in pooling your resources together as a nation. so enjoy your amenities and your separate entrance, i'm sure the

99% will let you have your goodies for a little while. they don't have to accept the status quo and they don't have to stay behind the walls that you have built. alex wagner from los angeles starts right now. >> the fate of the nation's health care may once again be in the hands of nine unelected judges. it's tuesday july 22, and this is now live from los angeles. >> different federal courts with different outcomes. >> breaking news on what could be a huge set back for the affordable care act. >> the subsidies that make health insurance more affordable on the federal exchanges. that's what's at stake here, it is what devastates the affordable care act, but another just up