well can be alone a show where you get the real headlines with none of the mersey are going to live out of washington d.c. now today we'll be speaking of the young turks about his departure and that's n.b.c. also get a look at who gets hit first if the debt ceiling isn't raised and who's already suffering and the new study says that those who pirate music and films actually end up spending more money on them so why do the entertainment industry try to cover all this up sectors mike masnick will give us those details we're going to have all

of that and more for you to night including a dose of happy hour but first let's take a look at what the mainstream media decided tonight. so there's only a little bit more than a week left until the u.s. might to fall out of debt if the ceiling isn't raised up on the chopping block for the budget the republicans lauder medicare and medicaid and the meantime the economy isn't getting any better unemployment isn't getting any lower life is only getting more expensive but the oh so misguided supposedly most trusted name in news called c.n.n. they decided to give you a story about something else one group calculated how much it would cost to go to hogwarts school of witchcraft and wizardry more than forty three thousand dollars and that's for a holy one year two which is actually the biggest chunk but remember harry he needs a unique list of school supplies need to wind up protective gloves appointed had all sorts of things a cloak. of. yes that is an actual reports about an actual study that was

done to determine how much it would cost to send your child to hogwarts a fictional academy in the fictional movie harry potter who did it maybe they'll use this opportunity to talk about the ridiculous costs of really universities right. yes you compare forty two thousand dollars is what it cost to go to columbia university right here in new york and it's more than a year and harvard's just to send your kid out to become a wizard it's the price right out of the ballpark i see it cost serious because it doesn't exist. there you go yeah you see even don lemon the anchor realize how freaking ridiculous and stupid this story was because it's not real there's nothing going on in the world no wars bannon's droughts debt disasters maybe you'd have to start talking about made up fantasy land schools but no actually that would never happen because we don't live in a fantasy world there is more content to report on than anybody out there can

handle but your most trusted name in news they like to call themselves went with that you know if you're going to talk about money being spent. you know how are almost fifty thousand troops that are still in iraq are supposed to leave soon or at least they're supposed to unless of course the iraqis ask them to stay but the point here is that it was agreed upon long ago that they would withdraw that doesn't mean that our massive embassy that we built in baghdad is going to be abandoned no no no no you see there's going to be another type of army in iraq where there are troops leave or not there's going to be a private mercenary army run by the state department and we've heard for a long time now but it's probably going to be over five thousand strong but it's basically all we heard and now we know why this one comes from wired's danger room today spencer ackerman got to interview a man named stuart bowen he's a special inspector general for iraq reconstruction he's the man who needs to audit the program who's supposed to be a government watchdog see what the hell the money is going to be spent time. but

bowen told average the state department has been shutting him out keeping him in the dark not answering the most basic of questions like how much is this going to cost overall and how many hired guns are you going to have her state department official what we do know is that so far the state department awarded three security contracts there worth nearly two point nine billion dollars over five years but we don't even know if that's going to be all because the state department won't show anyone the details this is absolutely ludicrous not only does the idea of the state department having its own army scare a lot of people i mean let's admit they're not really the most experienced bunch in that regard it also raises a lot of questions about how long we intend to stay in iraq what we're going to do there i'm just dying to know how many diplomats an army of over five thousand is going to be protecting all they drive from one spot to the next but also makes you sick to your stomach to watch social programs be putting on the chopping block to watch gridlock in congress all the pentagon and apparently the state department do

they get to build private armies with no oversight that's something that's worth looking into that something of the mainstream media chooses to this is just so much easier to charge late the costs of a fake school and completely fake world. kids go we found out the james there would be leaving m s n b c or is began swirling after al sharpton was filling in where of the story would as it was due to james poor ratings at the six o'clock hour prove the other night that was nowhere near true his ratings were good they were more than good turns out the m.s.m. dc's president phil griffin told rank the people in washington didn't like his telling that he needed to have more republicans on the program and perhaps most damning the wall being an outsider is good and i said d.c. in griffin's words is the establishment now something of those of us who observe the mainstream media could have told you from their coverage because they could.

when they actually admit to it and act on it themselves and as we asked yesterday how long for that establishment mentality really last before viewers wise up and start turning to other alternatives joining me from our studio in lassen los angeles is frank you're i think young parents again thank you so much for joining us we're happy that you've chosen us to be one of the places where you can come and talk about this story so you know you've already you put an entire statement out there on the young turks you held a phone conference yesterday and you describe the story of them sitting you down saying that they didn't like your tone or not pay somebody in washington like your tone and that they are the establishment i'm just curious what were the first emotions the first thoughts that came to mind what was her reaction when they said we are the establishment my first reaction was wow this is the speech there's a speech that people tell you about what you thought you never really going to get because usually it's a lot more subtle than that you know you get things like oh you really want to do

that story or are you sure about that but this was not subtle this was the kind of the you'd see in a movie and my immediate reaction other than surprise was well i'm definitely not going to do that so we'll see if they really mean it or not because i am going to be just as tough on all the guests and challenge them and be just as help on the obama administration as i always am otherwise there's no point in doing the show i don't need the money to to do a show that i don't believe in the whole reason i got in this business is so that we can deliver real information to truth to go audience as best as we possibly are going to have to ask a question this is something that we had tested during your phone conference q. but so that our audience can hear it where you really that surprised if you ever consider a mess n.b.c. or any of the big three cable channels to not be part of the establishment. well you know it's a great question because looking at it from the outside in new the young turks for

nine years know these is all the stuff that i was saying that they do trade access for unfortunately not covering the stories in a real way so their excess with getting the politicians on getting the white house to cooperate if you're on the democratic side you know your own products news getting the republican administration to play ball new think it's incredibly important if you're going to an election i've said this a hundred times but honestly it's saying it in theory and actually experiencing it is two different things so i was definitely surprised when he said it. just on the fact alone that did you would actually sit it out loud the best howard basically works so this point now you've spent time on the outside and you spent time on the inside now you know how the mainstream media works which is that they will do whatever it takes a few key places in washington happy to consider continue being part of that establishment would you ever go back to work for one of those networks if i asked

you if they offered you another deal. well now it's abundantly clear where i stand so i don't think one of those stations is going to ask me to come and do a show where we're soft on the government that's why they're going to hire me whether it's a republican or democrat that's in the white house or those in charge in washington i'm going to be tough on them and i'm going to challenge them and i'm going to hold them accountable as us with the press the media are going to do are supposed to do so they know what again with me they want that and they're interested and they're going to give me editorial independence and sure absolutely if not obviously i won't do it i want to talk about one of the reasons why it is that the media is soft on the government and perhaps doesn't hold them accountable it's an issue of access that you brought up many times that what is it that creates this environment where they feel like they need this access so badly that they'll do anything and they'll suck up to anybody in any administration just to get it. well i think you

forgot the whole point of this axis was supposed to be a means to an end and you needed access to the politicians so you can find out what was actually happening and report it to the people that was the job of the press but at some point along the lines that got lost and then they considered axis the end in and of itself oh my god we've got to get these politicians on we've got to get somebody out of the white house we have to you know cooperate with them otherwise they won't give us a scoop but if they give you a scoop that is just their point of view or their perspective but you haven't even checked out to see if it's right or wrong there was support of the scoop but i feel like your program the whole point of this thing it's become some sort of political soap opera and entertainment machine rather than something we are supposed to arrive in real information and i think you know if i may add a little commentary myself here too is that i think that there is this tiny little bubble that is washington d.c. and new york and the media just pets itself and they're the only ones that actually care who it is that might be first to actually get the lead and to break

a story nobody else in america cares as long as they're giving them the story in or giving them the truth but it's this self obsessed little bubble that really can't see outside of itself anymore but i'm just curious then so let's say we say that our alternative media is where you have to go if you want any real information but alternative media they don't have the access as much as they might like you report on it so who is it up to after that we have to start depending on organizations like wiki leaks. well that's why i've always been in favor where he leaks because they don't have to suck up to power to get access to like we actually found the information and just delivered it right to the american people and to the whole world and we know it's verifiable information so i think that's fantastic any journalist that doesn't think that's fantastic i have to question whether they're really journalists and you know what it's not just with the leaks look there is good reporting out there and you know during the iraq war and during the bush administration i used to say the best reporting that in the newspapers is done on page a seventeen the editors you know they go wrong with the headlines of all

saddam hussein really dangerous what is he doing with those yellowcake or the uranium or the tubes etc but he said he they actually have a great story about how he actually doesn't have any weapons of mass destruction and has nothing to do with saddam hussein so those stories are out there they're just not emphasized and they're certainly not put on television i mean how many investigative reporters are there on the cable news stations not very many lie because if they investigate the government they might point out something that's damaging and then they'll lose their access to government and probably they'll lose a few profits if they actually have to spend money i'm saying have an investigative team to you so how long do you think it is until audiences actually turn away from cable networks and say i've had enough i want to go elsewhere i want to go to something like the young turks. well i think that moment is already here everybody always talks about how online media is the future. of the present to give you a sense of it we have a million views

a day on just our you tube channel for the young turks and that is just as much as the highest rated show on m.s.n. b.c. so the audience is already there and they look that's what we try to do on the young turks and we try to tell the truth we try to give them a perspective that's real and that is not wed to any power whether it's the banks whether it's washington wall street your or otherwise that's why right now we're up to a billion views on you tube because people are thirsty for they can't get it anywhere else so they come and find us all they can to find you but the thing is it's not like you only have you were a guest on you still get big names on your show you still get politicians why are they willing to put up with tough questions for you but they wouldn't be willing to put out from them which they came from somebody on and i said the senior c.n.n. or on fox well that's the funny part of it right because the people give the best guess or the people who are the toughest on the yes the daily show has

a fantastic guess and they record everybody we get pentasa guess you know whether it's senator harry reid the majority leader you know congresswoman nancy pelosi john kerry senator sanders was on yesterday i mean you name it we've got it right for our part and i think probably for the daily show as well they appreciate a real conversation a lot of them do and plus some point you get so large that they go well i would like to reach that audience and you've got that large because you your or your audience trust you if you tell the truth. but i want to thank you very much for joining us and telling us more about your story and i'm with you there i think audiences are sick of being spoken to like they're idiots and having every little bit of news done down they want some truth and they want an honest smart conversation that's definitely something young turks provides to thanks so much. thank you really appreciate it. well still to come tonight we have an update on the

aaron swartz case he's a frequent guest on this program who is now accused of hacking as i my things network and downloading documents offers a story that president obama just announced that speaker boehner has it walked away from that to go she says there will be no deal for a mask must. ensure that only military mechanisms can do the work to bring justice or accountability. i have every right to know what my government should do if you want to know why i think taxes. i would characterize obama as a charismatic version of american exceptionalism. you know sometimes you see a story and it seems so silly you think you understand it and then he lives something else here sees some other part of it and realize that everything is all.

i'm trying hard look at the big picture. let's not forget that we have an apartheid regime right now. i think. either one well. we have the government says they're for keep you safe get ready because you give them their freedom.

frequent guest on our program is found himself in the headlines after is reporting that he used and i to use network to download millions of academic documents on j. stuart and schwartz of demand progress was charged with violating federal hacking laws and he could be facing decades behind bars if he's convicted but just days later now several thousand documents coming from j. sort of but have popped up on the file sharing website the pirate bay so according to sources over eighteen thousand scientific articles from the philosophical

transactions of the royal society appeared in the manifesto for a person named greg maxwell and then it specifically stated that maxwell obtained these files a long time ago and he was nervous to share that information until he heard about schwarz efforts to make i couldn't make information available to everyone so he went on to say that he actually obtained those documents through boring means but that he still sides were sure as the argument of open access is currently working to verify those uploaded documents did in fact come from their service they have already come out and said that maxwells comments on how we have taken that information don't really match up with how g.s. or operates but this all just plays into the bigger issue should academic or educational information really come out of we're not talking about sharing or allowing access to music or media we're talking about written educational information doesn't really make sense for somebody go to jail for decades for downloading those academic articles i have very serious doubt of the potential punishment that schwartz faces it's the crime i was sure seems to me to be another

example of the government making an example out of another person by serving them with a harsh punishment in order to deter anybody else from sharing those similar files and not surprisingly of course the f.b.i. is heavy handed tactics have backfired yet again and stead of deterring it people like maxwell they simply encourage them to leak more documents and solitary wish words and the open information movement towards this high profile arrest may have just opened the floodgates for activism to provide open access to information to academic information or also could be the beginning of yet another large federal crackdown we're just going to have to wait and see. well here we are it's just a little over a week before august second before a looming debt default of so-called catastrophic proportions may hit and it's still hard to figure out exactly the way this is all going to end up the political back and forth here in d.c. has become nearly unbearable one day there's a grand bargain the president says that he thinks he has

a republican signing onto in the next day there is not and today was one of those not days the president just announced this hour that speaker boehner has walked out of that negotiations that there will be no deal let's look at this from a bigger perspective to let's go big as the president said today an op ed for usa today where he continued his calls for a big deal including tax cuts and clude ing eliminating waste as well as targeting worthwhile programs let's go big and ask who would be affected first if we did default let's go look at who is already being in fact affected which includes a number of states and it's also fair when the release of a federal audit that audit excuse me from the government accountability agency that shows not only are there serious conflicts of interest and need to be addressed but also that the fed lent out sixteen it's really in dollars in emergency loans sixteen trillion that's more than our debt now here to discuss this is like nomic policy and therefore think progress to orate and a progress report thanks so much for being here so apparently just now breaking

news while i was doing this show the president did a press conference announce that speaker boehner excuse me he's still speaking has walked out a negotiation all leaders are being called to the white house tomorrow at eleven am and it seems like the president is really starting to clamp down with what is what was he been saying is he actually taking a stance here being hard on them well he didn't in the sense that he said that the no revenue plan that has been kicked around a little bit is kind of off the table but it's really hard to tell these negotiations have been so fluid it's been so back and forth nancy pelosi today actually outlined a new. a revenue plan that she said would be acceptable to house democrats so they're kind of shooting past each other at some point so what kind of bill bratton you plan is going to be acceptable to house democrats i thought that was all part of the great bargain that we're making here is that there's supposed to be some kind of shared sacrifice that it's not just going to be only people you know only the elderly and those that are on medicare or medicaid those who actually need help

they're going to suffer here the plan that she outlined was was some. discretionary spending cuts some health savings no cuts though and some berries tax provisions that she figured she could sell as not tax increases and that would be a big deal she said she didn't like it that she doesn't want that to be where they ultimately end up but if you step back you realize what we're talking about here this is the credit worthiness of the country and the fact that we're having to negotiate a deal the spending cuts taxes whatever when raising the debt ceiling has been done time and time again totally uncontroversially. it was just done and now we're sitting here having to negotiate with democrats integration with themselves with republicans trying to figure out a way to do something that you just do under normal circumstances that's why you know i'm interested because now we are in this crisis mode the president is speaking it's a breaking news conference because speaker boehner just walked out we only have a little bit more than a week left why don't we get to this point and is this something that this president did wrong should he have gone with with the constitutional amendment the

way the bill clinton said he would have handled this why now are so many republicans that voted i think six times during the bush administration to raise the debt ceiling why suddenly is this the end all and be all that everyone needs to take a stand because republicans realized they had leverage because this had been done and they used it and obama at the beginning didn't say what everyone agrees on is that the debt ceiling has to go up i agree speaker boehner agrees that's the deal and walk away instead he started negotiating and so now we've got this snowball you it basically he was a softy he's fine he said we'll start negotiating and it's his call i think actually the missed opportunity was when they extended the bush tax cuts back in december twenty eighth and i'm not clear why obama didn't say in that deal if you want your tax cuts for the wealthy the debt ceiling goes up until after the twenty twelve election we're getting this off the table now instead he let it fester until this point and now we're at the point where the republicans realize they had all this leverage and had someone who is willing to negotiate as we find ourselves with just a simple i think that he's going to negotiate that why is it that the president i

mean even before any of this happened right a day as i mentioned there was an op ed in usa today from the president that was still talking about needing to make this big deal to have to cut programs that are wasteful as well as cutting some of the programs that we don't necessarily need i mean think about the way of the economy looks right now right thinking about unemployment sure it's one thing to want to get the financial house of this country hard but why would you do it right now in the middle of a recession when unemployment is high and like we again like we said when perhaps the country's about to default i think there are a cup. thing is first i think that obama really does want to be the guy who creates this grand deal and who sets deficits and have always sustainable path but i think the second thing is they're afraid of what will happen later they think if they get a deal now it takes deficits and debt off the table both substantively and politically so they don't have to spend the next however many months talking about that but he's howling out as he sold out his entire base all the progressives that perhaps got him elected all those people who are supporting him as he turned their

back on it there are certainly not happy really depends on what is in the final deal but if you're talking about social security medicare medicaid those are things that progressives hold near and dear and so if those actually do get cut we're going to have a lot of progressives who are very very upset because well i would hope so i think that we need some progress as they would actually be upset about it so let's talk about if if we do indeed default as it looks like it might happen now the president is still speaking the baker or john boehner walked out who would be hit first i mean the president already said a couple weeks ago that he can't even say that social security is secure it really depends what happens when we actually blow through the debt ceiling is that treasury just has to start picking and choosing who gets paid and who doesn't depending on the tax revenue that's coming in because of a quirk in the calendar were due to hit the debt ceiling august second on august third twenty three billion social security checks are due that the government is not going to have the money to pay for and so that's why social security is one of the first things that's on the chopping block but it's just up to the treasury

secretary has to decide do i pay for veterans' benefits do i pay for unemployment insurance do i pay for whatever are we paying back some of our our debts that we have internationally to other countries that will undoubtedly be the first thing because if you don't do that the nation actually goes into a true default and that reignites the financial crisis potentially so that's that's the first thing no treasury secretary is going to default on interest payment on the debt they're going to pick and choose amongst the many many many domestic programs all of us are going to suffer because washington can't get its act together and last time i was actually already suffering out there to. about some of the states that are already seeing perhaps their credit ratings falling but there are five states who's virginia south carolina maryland new jersey and tennessee that the ratings agencies said because the states are so dependent on federal revenue if the federal rating goes down credit rating goes down those states get downgraded as well and i should mention stories bob mcdonnell the governor of virginia a few months ago was trying to toe the tea party line he's a republican and say oh i don't see any reason to raise the debt ceiling i don't

know why we would do that when he realized that his state was going to get downgraded because of it the federal debt ceiling not going up suddenly he was calling for it to go up immediately it has to happen today we need to do it right now that's where these these cuts will actually hit the hardest is that the local level at the state level because the states have already been hammered local governments have already been hammered if the government has to implement a forty percent cut in its budget overnight which is essentially what will happen if we go through the debt ceiling that's where it really gets felt in those programs for the unemployed for the homeless health care at a local level that's what really kind of is going to feel the first round so how do we compare that to this report that came out from the government accountability office today right thanks to the dot frank financial reform bill they have to do you are not out of the fed and this report comes out and says that well actually we spent sixteen trillion dollars or gave out sixteen trillion dollars in emergency loans but this is her financial institutions this is her banks this is bernie sanders called i think socialism for the rich are those the policies that we can

point at that point in time and that's are we were doing that now that we're making everyone else like we said all those programs that are going to hurt it really depends on how this shakes out at that time the fed was doing it everything in its power to kind of just keep the economy on its toes some of the conflicts of interest that were in the report are actually pretty incredible banks running programs that lend to banks including their own which is a definite conflict of interest at the very least but that's what was going on at that time and if you look at it in the context of now where we're saying hey the rich get off their taxes don't. have to go out for taxes don't have to go up corporations get to keep their loopholes corporate jet owners don't get to keep their loophole but medicaid gets hammered. sounds like more of the same now yeah especially as of those concert the conflicts of interest to we saw some of the people that were the bad in new york that also had their own investments in certain companies that they were choosing to bail out do you think we're going to see any of that change or is the new regulations at least if we are in that situation again

i'm actually a pretty big defender of the dodd frank bill so i think the tools are in place assuming that regulators choose to use them to avoid that situation again but the way the bill is structured you really don't know until it happens if the next treasury secretary federal reserve chairman who is there at that time isn't willing to pull the trigger and say all right that's it this banks going down is going to disappear. because you know maybe if they choose to use the tools then perhaps something can be averted same thing if congress chooses to use the tools that they have now to avert a financial disaster and not allow us to default on our debt then maybe everything ok thanks so much for joining i think you. will still to come tonight you know the meeting of the group are going to give you the definition in tonight's full time segment and we're asking for online streaming of videos and piracy actually the movie and music industry it's going to dive into that since. you know sometimes just.