thank you. well convey alone a show where you get the real headlines with none of the mersey come alive out of washington d.c. now today will 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 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 to. write so there's only a little bit more than a week left until the u.s. might have called off its debt ceiling isn't raised up on the chopping block for the budget the republicans lot are 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 holy one year two which is actually the biggest chunk but remember harry he needs it you need list school supplies you to wind up protective gloves pointed hat all sorts of things

a cloak. yes that is an actual report 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 but wait it may be no use this opportunity to talk about the ridiculous costs of real universities right. yes you can care 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 the center kid off to become a wizard to price it right out of the ballpark i see the series 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 let me give you a good example to feast your eyes on here who 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 there are massive embassy that we built in baghdad it's going to be abandoned oh no no no no you see there's going to be another type of army in iraq where our 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 that'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 accurate 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 going to have her state department official what we do know is that so far the state department awarded three security contracts they're 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 to anyone the details it 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 it also makes you sick to your stomach to watch social programs be putting on the chopping block to watch the 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's something that the mainstream media chooses to miss is just so much easier to try to play the costs of a fake school and completely fake world. kids go we found out jane there would be leaving m.s.n. b.c. and rivers began swirling after al sharpton was filling in or out of the story what is it was due to jenks poor ratings at the six o'clock hour fishing prove the other night that was nowhere near true his ratings were good they were more than good turns out and i said the c's president bill griffin told tranq that people in washington didn't like his telling that he needed to have more republicans on the program and perhaps most damning the while being an outsider is good and that's n.b.c. in griffin's words is the establishment now something of those of us who observe the mainstream media critic told you from their coverage it is

a naked. when they actually admit to it and act on it themselves as we asked yesterday how long can that establishment mentality really last before viewers wise up and start turning to other alternatives joining me from our studio in less than los angeles is frank you're i think john kerry 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 they 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 was the reaction when they said we are the establishment my first reaction was wow this is the speech this is 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 kind of a 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 hard 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 and truth to the audience as best as we. are going to have to ask the question this is something that we asked yesterday during your phone conference too but so that our audience can hear it where you really that surprised you ever consider m.s.m. b.c. or any of the big three cable channels to not be part of the establishment. put your it's a great question because looking at it from the outside been do the young turks for

nine years know these is all of 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 cooperate if you're on the democratic side you know you're on fox news getting the republican administration to play ball new think it's incredibly important as you're going to elect and 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 out loud that that's how are 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 to keep voices in washington happy to consider continue being part of that establishment would you ever go back to work from one of those

networks if they ask 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 into a show where we're soft on the government that's why they're going to hire me whether it's a republican or a democrat that's in the white house or less 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 that's what the press the media are going to do are supposed to do so they know what again with me they want that in their interests 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 out many times what is it that creates this environment where they feel like they need this access so badly that bill to anything and they'll suck up to anybody in any administration just to get it. well i think they're forgotten 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 reported 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 will 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 to see if it's right or wrong there was support of the scoop but i feel like you're forgetting the whole point of this thing it's become some sort of political soap opera and entertainment machine rather is something we're 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 there are 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 out to after that we have to start depending on organizations like we can leaks. well that's why i've always been in favor were released 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 spain has the i have to question whether they're really journalists and you know what it's like to sweep 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 that cetera but a said he did 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 why partly 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 on saying other 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 no it's definitely present to

give you a sense of it we have a million views a day on 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 half a billion views on you tube because people are thirsty for they can't get it anywhere else so they come and find us now they come and 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 from you but they would be willing to put out from them or if 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 guests and they record everybody we get fantastic guests you know whether it's senator harry reid the majority leader as 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 to because you know your audience trusts you because 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 dumbed 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. it's also

a concert i think we have an update on the aaron swartz case he's a frequent guest on this program who's now accused of hacking into mit is networking and downloading documents offers a start and then president obama just announced that speaker boehner hasn't walked away from that negotiation there will be no deal for gas what's to. ensure that only military mechanisms that you don't work on to bring justice or accountability. i have every right to know what my government should do if you want to know why i pay taxes. but i would characterize obama as a charismatic version of american exceptionalism. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else here sees some other part of it and realize that everything is just you don't

understand part of the big picture. let's not forget that we had an apartheid regime right. i think. either one well. we never got the shows there for the keeping safe get ready because of their freedom.

frequent guest on our program has found himself in the headlines after his report of the use mit his network to download millions of academic documents on j. store 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 been have popped up on the file sharing website the pirate bay so you cordin 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 it specifically stated the maxwell obtained these files a long time ago and he was nervous to share that information until he heard about schwartz's efforts to make i could have 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 it's an argument of open access stories currently working to verify those uploaded documents did in fact come from their service they have already come out and said that maxwell's comments on how we obtain that information don't really match up with how jesus or operates but this all just plays into the bigger issue should academic or educational information really come with a price time we're not talking about sharing or allowing access to music or media we're talking about written educational information this really makes sense for somebody go to jail for decades for downloading those academic articles i have very serious doubt of the potential punishment that towards faces fits 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 instead of deterring it people like maxwell simply encourage them to leak more documents and solidarity with words and the open information movement or shorts of high profile arrest may have just opened the floodgates for activism to provide open access to information 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 the republican siding on

to win 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 debt 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 in an op ed for usa today where he continued his calls for a big deal including tax cuts and including 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 the fed audit excuse me from the government got ability agency that shows not only are there serious conflicts of interest the need to be addressed but also that the fed lends out sixteen it's really in dollars in emergency loans sixteen trillion that's more than our debt and here to discuss this is packer off a low economic policy and there has been progress or it and the progress report

thanks so much for being here apparently just now breaking news while i was doing this show the president had a press conference announce the speaker boehner excuse me he's still speaking has walked out a negotiation all the leaders are being called to the white house tomorrow at eleven am and it seems like the president is really starting to clamp down 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 say 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 some kind of no revenue 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 or those who actually need help

but are going to suffer here the plan that she outlined was some. discretionary spending cuts some health savings you know cuts though and some various tax provisions that she figured she could sell as not tax increases and that would be the deal she said she didn't like it that she doesn't want that to be where they ultimately end up but i think if you step back you realize what we're talking about here is the credit worthiness of the country and the fact that we're having to negotiate a deal of 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 at 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 i mean is there something that this president did wrong should he have gone with with the constitutional amendment the way that

bill clinton said he would handle this why now are some of the 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 needs to go up i agree speaker boehner agrees that's the deal and walk away and said he started negotiating and so now we've got this snowball do it basically he was a softy he's fine he said we'll start negotiating and it's his fault i think actually the missed opportunity was when they extended the bush tax cuts back in december of twenty ten 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 five 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 they had someone who was willing to negotiate and so we find ourselves with just as i do think that he's willing to negotiate though why is it that the

president and even before any of this happened right today 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 if you 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 more 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. things first i think that obama really does want to be the guy who creates this grand deal and who sets deficits and debt is a stable 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 him they're 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 you're going to have a lot of progressives who are very very upset that the president 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 john baker 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 but the governor's not going to have the money to pay for it 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 to 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 first down will comes from that will undoubtedly be the first thing because if you don't do that the nation actually goes into a true to a fault 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 let's talk about who's actually already suffering out there time. some of the states that are already seeing perhaps their credit ratings falling but there are five states use 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 and i

don't know why we would do that when he realized that his state was going to be downgraded because of that 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 and 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 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 dodd frank financial reform bill they have to do a nod of the fat 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 for financial institutions this is for banks this is bernie sanders called i think socialism for the rich are those the policies that we've point at

that point on it's are we were doing that now they're making everyone else like we said all those programs that are going to hurt it really depends on how this shakes out that that 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 are in our program actually pretty incredible banks running programs that lend it to banks including their own which is a definite conflict of interest at the very least but that's what's 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 up corporate taxes don't have to go up corporations have 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 isn't this concept of conflicts of interest to you we saw some of the people that were at the fed in new york they 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 has

a 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 that's banks going down it's and it just appear. to have all that's good you know maybe if they choose to use the tools then perhaps something can be averted and same thing in congress chooses to use the tools that they have now to avert a financial disaster and not allow us to default on our dads and maybe everything ok thanks so much for joining us. also come tonight you know the meaning of. we're going to give you the definition in tonight's cool time segment and alaska's online streaming of videos and piracy actually helped the movie and music industry is going to dive into that since. you know this.