both. of the the of. can be a lot of show real get the real headlines with none of the mercy if you live in washington d.c. now it looks like more tough times are ahead for americans and president obama as unrest in the middle east is encouraging drilling here at home obama will have to deal with a lot of very anxious republicans so are the hurdles coming up in the near future when it comes to gas prices in the u.s. i'll speak with will potter then at a time when the u.s. is practically pinching pennies to fight a budget deficit and americans are being asked to sacrifice

a recent report unveils billions of dollars worth of wasteful spending in iraq and afghanistan all thanks to our reliance on contractors and they were also there by this to be a major problem jordan's hannah will join us with his thoughts next we'll speak with author kevin pools and about his latest book kingpin last night about max butler a hacker who once worked for the f.b.i. until he went over to the dark side and then there's an attack on prostitution going on in the u.s. harry reid has unexpectedly decided to take on the oldest profession which is only legal in his own state and which he's never had a problem with before so is harry finally lost it brothel owner janice hahn and it's friday which means we'll be celebrating with happy hour but discuss the hottest topics around the watercooler like charlie sheen the latest outrage the not only hurt him but also his wildly popular show now we're saving all that fun for the end of the program but now let's move on to our top story. it's no secret that

many americans are still suffering in this rough economy and the threat of rising oil prices is one more cost of the people just can't afford experts warn the unrest in the middle east could result in food prices skyrocketing as well and where there is a crisis there's always. room for exploitation of the subsidy has more. oil three little letters. could have dire consequences on any economy and here in the united states or oil is sometimes also accompanied by three big we're going to. go and with those three words you've got yourself a politically entrenched powerhouse we'll drill new wells sure we'll drill them drill baby drill entrainment. and the crisis in the middle east has only inflamed so what we have now are soaring gas prices and fears of a relapse in the already weak economic recovery we have

a world oil market so when one place goes down in one place is in trouble which it seems like libya is today and it affects the oil price around the world and on the heels of the unrest crude is heading for the biggest weekly increase in two years and when oil prices soar the price of food also sky rockets and so a vicious cycle begins for many americans a reality that is once again rally the base and its spokespeople but perhaps for the wrong reasons and whenever there's a crisis either here at home or abroad it's usually exploited politically by the government or the media it loves to hate khadafi is now threatening to burn up the oil fields experts are predicting a worst case scenario of two hundred twenty dollars a barrel if that happens but i don't believe that this this particular interruption of oil supplies will last very long so if you're trying to tie drilling off shore

with what's happening in libya i think it's a bit of a stretch a stretch that some are all too willing to make the oil fields are on fire and we have no backup plan. well he has lifted the moratorium in the gulf for drilling oil thanks to cass sunstein no new permits have been issued permits and backup plans aside what's really going to happen in an already ravaged economy where we see this in the middle east. and this in our very own midwest. so the last thing you need is the people who are. in the worst economic shape are the first ones to get hit by gas prices and this will cause a lot of discomfort to a lot of people who don't need this bad news bad news recently echoed by vladimir putin russia's prime minister said that the unrest in libya has driven crude prices beyond fair market levels in danger in the global economy but here concerns of

violence spreading to other well producing nations in the region have been overshadowed and instead of asking how americans will cope with this are asking the question that never gets answered but at the same time seems to never get old who are our friends and who are our enemies for our t. . well the rest of the middle east bring out the drill baby drill cries here in the u.s. it's pretty easy to see which direction this is all headed republicans are in control of the house so despite announcing plans to cut oil tax breaks and subsidies obama is going to be in for a very tough fight and so far his track record looks more like one of someone who gives it off to answer that at the announcement by the american petroleum institute the largest oil and gas industry trade group of they're going to start donating to candidates this year as a result of obama's plans but then again could one documentary about the dangers of fracking when it can reward change everything here to the skies with me as well

potter founder of green is the new right well thanks so much for being here. so this seems kind of random but i think. this is very interesting to look at the way that the oil and gas industry is responding to this documentary gasland you know we've spoken about it before because we found out the pennsylvania department was monitoring people that just went to a screening and now it's nominated for an academy award and we have these trade groups a lobbying at the academy to get it taken out there saying it's factually incorrect but it sounds to me like they're kind of scared of it but if you get all speaks to how much of a threat a movie is an educational efforts like this can be i mean the fact that a film can get people to rethink their positions and actually inform them about the issues god forbid is really through to these corporate interests because once people know about it they move an act accordingly why hope it works i just wonder you know i've never heard of this happening before i wonder if you know wall street was a lobbying against michael moore something like that if we've seen this before we're

talking mentoring is you know of any other example not to my knowledge but it would surprise me at all i mean through all of this and through the hall and security efforts in pennsylvania you see these repeated attempts to buy these industries to silence the critics so when the shockingly it's good to find out there tonight in hollywood and hollywood itself is very political and we know that there's an entire lobbying process because i just to get you know the big actors out in the big movies that were very catty words but the thing that i find very interesting is i think it's almost backfiring for these trade groups because look how many people are now talking about it because i put in the same thing with the spine in pennsylvania you know they try to silence the critics and by doing so assuming this is actually gets exposed before average and we've talked about this before i really do think the more people learn about these how these corporations are trying to push their extremist agenda you can all be done and the thing is that they're not just you know going over to the academy they're also writing scathing critiques

really and attacking and josh fox the director of gas land and also mark ruffle oh who just is an actor who happens to feel like this issue is very near and dear to. hart but at the same time they get angry about two actors going it talk all you know are saying this is absolutely controllable how could this be happening this is a hollywood producer that scripted it but how big of a lobbyist is the oil and the natural gas industry in the u.s. clearly the oil and gas industry have been oppressed and silenced in washington for far too long right i mean very much an outrage that they're not having their voice heard even though they spent one hundred fifty million dollars last year and lobby and now we're talking about with the american petroleum institute starting a pac just to funnel more money into candidates before they even get into office and when they are it's office to funnel more money into it so to be outraged is just being a preposterous the american china's. last year i believe spent about seven billion

dollars lobbying congress and the white house now that obama has actually laid out these plans you know how much more money do you think if they're going to throw at this because it sounds to me like they're really making an outward thread by announcing it and saying that they're doing is because of our absolutely or one of the many i think that's really important remember too that six point seven million that's in addition to wall in chevron and b.p. and all these other companies and in addition to people like the koch brothers we've seen the price of one sort of the number one campaign here when it comes to republicans and we've already seen the consequences of pushing using their money to push their agenda in wisconsin funneling money into governor walker in the union busting efforts that were going on out here and there's more of that if we lock people in these corporations to keep giving the money to politicians so recklessly like this you know how many pacs are out there for the oil and gas industry for the oil and gas and well over a hundred my guess is so here comes another one of it is that it needs to be

creative right now what else do we know about this group we sure they have the powers of persuasion because they have a lot of money behind them but i've also heard that the americans. has tried to plan fake grassroots campaigns to attack environmentalist in the past absolute greenpeace found out about this memo from a.p.i. . in advance of the climate summit you know this past summer planning out how they would engage these like full groups group it's called an astro turf to create this appearance of a grassroots movement across the country that was all bankrolled by the oil and gas industries to make it look like people cared out corporate interests as opposed to environmental interests and what you know what they really care about now how do you think of this is all going to and let's say you know i mean if republicans are in control of the house if we already have these and trade groups announcing that they're going to start finally when he now for an election that's in two thousand and twelve is a look like alternative energy is going to lose out to big oil again unfortunately

it looks like that's what's been happening for quite some time i mean we're willing to ask industry influence in washington there's nothing new and it's been shaping u.s. domestic and foreign policy for quite some time and i don't think there's really an indication that's going to change but no silver lining in this is the more they overreach with things like the screws the spying and so some people like mark ruffle of the more absurd biscuits i think for as everyone is hurting and with the segment you showed people are hurting with gas prices with the economy and it's people who filthy rich. and they're getting away with it thanks to the government well thanks so much for joining us right. now coming up next who is the best group to blame for your revolution all coming in a close second after his tour of americans is you guessed it. i'll tell you the latest leader who claims that the terrorist group is behind the rest of their country and we'll bring you the story of a master hacker max butler aka next vision behind went from working with the f.b.i.

turning to the dark side. what drives the world the fear monger. in use by politicians who makes decisions to break through. who can you trust no one who is interview with the global machinery to see where are we heading state controlled capitalism and school sessions when nobody dares to ask what we do our t. question more. leg. lifts. the. lifts.

the length the leg the cuts. hey guys welcome to show and tell me you're going to show we've heard our guests have to say on the topic now we want to hear are you just going to you tube the video response or the twitter profile of the questions that we've posted on you tube every monday and on thursday to show your responses we played your voice.

the death toll continues to climb in libya as people continue to fight against their leader gadhafi but today iraq iraqis also took to the streets in what's being called the day of rage and reports of said there are eighty five casualties from civilian efforts to storm their government and now it seems as if there's one group out there that's been unfairly picked on because of the scapegoats of all these sudden changes in the region and the cry for democracy seems to be contagious the leaders of both countries have blamed militants for the uprising specifically al-qaeda that's right both gadhafi and iraqi leader nuri al maliki will lead you are blaming al qaida for the unrest now copies even accuse the militants of supplying libyans with hallucination pills that will trick that into revolting and don't get me wrong here it's not like i'm defending al qaida i don't think they're the good guys and i feel sorry for them but come on right at least because that has

some ties even very loose ones to what's going on don't just make it up out of thin air al qaeda hasn't been involved in these uprisings perhaps there should grant it's a little funny watching the young people of the middle east north africa unite on the way that they're responding clearly shows that they really have absolutely no idea what to do these jihadi story caught off guard they're sort of sending out mixed messages they'll say things like wells going to take down because he is an enemy of god then they turn around and they remind people not to ignore the koran because they may not like adopting but that does not mean that they like the idea of democracy the secular evil of the world and i sent. weird commentary like this just proves that al qaeda is way out of the loop when it comes to revolution so there is no call for major revolt from players in al qaeda or any other militant organization not this time around we have to admit maybe for americans for zionists the two groups that are usually blamed for everything the thing that goes wrong anywhere in the world they're probably enjoying this although copy has made

statements about how evil america is to all kinds seems to have come out as this topic so blame the terrorists they don't actually have to address the issues of your people so nice try could be but al qaeda and democracy just don't go hand in hand. now any time that we hear about the issue of money budget cuts cannot the pentagon fights tooth and nail for every last dollar reminding us that is a matter of national security something we cannot afford to sacrifice but according to a new report from the commission on wartime contracting they do think they can afford to waste if the report found that corruption and waste has cost the u.s. government billions of reconstruction dollars and both iraq and afghanistan losses to fraud alone were estimated at twelve billion dollars and the rest one fortunately they kind of have to guess because you see the reliance on contractors has grown so large that there is no central federal database for definitive

accounting and the commission also found that the use of hired hands has become a default option looked at by many federal officials as a free source of labor billions of dollars that doesn't sound free to me so why can't congress going to handle on it why do the same companies who are guilty of corruption and fraud keep getting pushy contracts without any accountability or discuss with me and starting to my sister professor at american university and author of terrorism and national security reform how commissions can drive change during crises thanks so much for being here they saw it for having me let's start with the money and give this because there's one statement that the commission made in their report where they just say the war in itself entails waste and you know sure you can listen to them but then you know considering that we fight the we see the pentagon and the department of friends and the state department fight tooth and nail for every single dollar and like i was saying make this a matter of national security and tell us that our lives are at stake shouldn't we

be a little bit angry when we hear that billions of dollars are being wasted we certainly should be on the commission really makes the case very strongly about this which is not necessary that the reason why there is this waste is because the government has a socially fall down on the job in terms of how it deals with contractors and particularly long on contractors too much. i rely on contractors for jobs that could be done better by government employees and. to break that down a couple respects. keeping things are really that one we don't need to use contractors for as many functions as they're being used for now and so some functions such as real core security functions should not be outsourced to contractors at all so for instance we've been using contractors to protect military convoys and protect military personnel in transit that's a military function that shouldn't be given the democratic area the ones that are supposed to be protecting people by debating protection right right and we should have uniformed people doing those jobs and the commission also found that using

contractors is not cost effective in many situations in some cases it is but there's been a prevailing to lock defeat in washington for the last couple decades that it's cheaper to use contractors than to use government employee and in some cases that's true but in many cases it's not and in the long run our government would actually save money by restricting the use of contractors and managing it overseeing contractors more effective ways of whole lives spread because this report also says these federal law you know officials seem to think that these contractors are free have their free labor because they just know that congress you know will absolutely keep find on to get no matter what has got about well i got that point in part because it's easy to use contractors easier than hiring government officials sometimes because the process of hiring a full time program play can be burdensome there's bureaucracy and hiring contractor can be quicker easier and there's more flexibility but the government shouldn't do things that way we should be hiring more full time employees to do

some of these jobs and in particular we should be hiring more carbon in place to oversee the contractors we now have many cases where contractors are overseeing contractors or government contracting out the function of overseeing contractors and. that's that's a bad idea because contractors. i don't always have the best interests of the country at heart when they're doing their work although contractors for the most part are patriotic honest people they. need to be overseeing effectively by the government and i mean contractors these this is a private business right so they're looking out for their bottom line i'm not saying they're bad people but they're not as rarely being patriotic cares they're just trying to get paid and you have to look at the fact that you know you have some of these contractors that are really just dominating the scene look at companies like a p.r. like dying corp and we're so dependent on them for every single function because they provide so much that how do we get away from these companies you know who are you know the corruption well it's a long term process to reverse this. to

a large extent but there are some things that. are important that can be done soon and the commission makes recommendations along these lines one is to. hire more government personnel to carry out some of the functions that should be carried out by the government to is to hire more people in various government agencies to oversee these contractors to ensure they're doing their work correctly that they're not engaging in waste fraud and abuse they actually recommend one agency to look over all of the contractors and one agency for each the state department and the pentagon and you have both actually they recommend creating new offices in various agencies and also creating a permanent inspector general that would oversee contracting for military operations in general and this is really important because what happened with the iraq and afghanistan wars are after those were started and there were reports of waste fraud abuse congress created inspector generals to investigate what was happening there but this was already once the wars were well underway so if we

create a permanent inspector general that person will from the beginning of any military deployment be monitoring what's happening in overseeing it and back and help eliminate some of these abuses by contractors and i'm just curious you know you say that's very important that we have these agencies in this inspector general but do you really think that out of work i mean right that's just creating an. another bureaucratic mess on top of the bureaucratic mess that we already have but by itself it won't solve the problem i think. more government employees to carry out these functions is. also essential because we can only use contractors last when we have people in the government who are doing those jobs and the. myth that using contractors will always save the government money needs to really be a distant users but i know that this report helps do that and i think one other point i want to make about this commission and broader point about commissions is that a commission like this can actually be really important and people tend to be cynical about commissions when politicians appoint

a commission they say they're just trying to pass the buck avoid blame and in this case the commission can provide really the definitive account of something that happened that's something that i've found in the research that i've done in my new book that are coming out and commissions can really be actually listens to this whole reports coming out this summer and see what the responses are that thanks so much for being here thank you for having me. and there are different kinds of hackers white hats who do good who find security loopholes and vulnerabilities in order to fix that and there are the black hats those who find those vulnerabilities and exploit that share them with others make a profit maybe end up in jail and a new book kevin pulls and details the story of max butler aka max vision a hacker who once worked as a consultant for the f.b.i. but then turn to the dark side and amongst other things fall credit card data from millions of consumers which insult and you might be thinking so what it's just some hacker that's now doing time but i think this story shows us how one man can affect

millions and how it's all a choice whether hackers use their power for good or for evil now joining me to discuss it is kevin polls and senior editor at wired dot com and author of kingpin how one half or took over the billion dollar cybercrime underground kevin thanks so much for joining us i'm curious first of all because i know that you have a hacking background it yourself or you serve some time for it is that why this story and you you know you decided to write about it did you somehow connect with max vision. you know i've been covering hackers for a long time about twelve years now and i've seen a lot of interesting stories what i liked about max's story is that he kind of personified this whole shift that we've seen over the last ten years of hackers going from recreational intrusions and exploratory intrusions into becoming to for profit criminals and and sometimes making a lot of money out of how do you i mean i'm surely you must have gone through this

thought process too how do you decide whether you want to be a hacker that actually does good things or whether you want to do bad and rake in the dough. well max always had a mischievous streak but he was he always wanted to be one of the good guys and for a long time he had a reputation in the computer security community of being a really solid white had to be very good research and you could pay him to hack your network can tell you what the vulnerabilities were he'd make like a hundred dollars an hour doing that. where he got into trouble was one point he decided to hack the pentagon and closed their security holes for them without permission he got caught doing that and it was while he was in jail that he wound up hokkien up with more serious white collar criminals like career criminals and it was a small tight disciplinary thing that led to him becoming a criminal himself after he got out but so then is it just the chase is it you know i hang out with these other guys that are also criminals and boasting about who

have to widen who hacked to or are there just really not enough inferences out there i mean you mentioned he was making a hundred dollars an hour for the pentagon but is that enough are there enough options out there for other hackers who want to work you know with the government or help companies. in the us there are a lot of options in eastern europe and some other parts of the world there are a few and that's why we're seeing them as real kind of centers so organized cybercrime. that's that's what made russia and ukraine kind of the center of the cyber crime universe for a long time and in many ways it still is in max's case when he got out of jail for this pentagon hack he he found that he was no longer employable so he couldn't make better hundred dollars an hour and more and couldn't get a legitimate legitimate job but he did have these prison contacts and he went off from there how do you think of as anything that we can learn from max's story right i mean if we look back at it now as a normal person is my credit card any safer now that max is in jail and someone's

found these loopholes that he decided to exploit or quite the opposite and i'm more danger. well it's probably marginally safer every time a major cyber crime figure goes to jail and max was definite one of the big ones but overall the flaws that made his hacking possible are still out there so we're still seeing a lot of a lot of vulnerabilities a lot of a lot of bad guys making money off of it in next case for example he was very into hacking restaurants he would break into your restaurant point of sale systems and he would steal credit card data at the moment practically a user made a purchase so you you could you go pick up your pizza you swipe your card at the cash register that's where max gets your card number and he passes it on. to a colleague or he sells and you under ground. even now years after his arrest will see that this type of attack is are going to still effect it's probably bigger than it was when max was doing it in two thousand and seven. oh about that makes me feel

good about eating out at restaurants but i'm curious as to what your take is on anonymous right we've seen this very loosely organized network of hackers lately be in the news and you know they're really making political statements they're defending wiki leaks and going after companies that attack breaking leaks they've also decided to leak a lot of documents on the web themselves you know what's your take on that. my view is that we're going to see more attacks of this nature in the future and i think we keep lisa's kind of set up a model may i know that that is inspiring to me to the hacker community what we saw with this recent hack of the computer security company h.b. gary is an honest and honest didn't just launch a denial of service attack on their website or pull a prank like they might have done in the past they went in they stole all the company's e-mail and then they set up kind of an instant we keep leaks type website

where you go on and you could conduct searches and go through and read company e-mail based on the search results so that that i think was definitely a wiki leaks influenced type of attack in fact that i expect going to see a lot more of a lot of wiki leaks imitators who. aren't just posted leaks material is working weeks but actually going out to themselves oh definitely will be interesting to watch kevin thank you so much for joining us and everyone go out and get his book about this thanks so much thanks. coming up next it's told time and it goes to the congressman who laughed at the thought of obama will. let you know that it's not the right and harry reid has finally come out and said that he wants to outlaw the out of brothels allowed to do that now when his state is facing a budget shortfall while on the brink.