am. can be alone a show we look at the real headlines with none of them are seen or can live in washington d.c. now and i will speak with kelly evans of the wall street journal about jobs numbers the stock market drop yesterday and the possibility of the s. and he'd downgrade us debts that will take a look inside we'll see if this is really prime real estate for government recruitment of hackers averageness to reason t.v. reporter michelle feels about americans being a fed up with congress and her now infamous interview with matt damon about

teachers in america we have all of that and more for you tonight including a dose of happy hour but first let's take a look at the mainstream media has decided to move. it's a day jobs numbers came out for the month of july and before i give you all the details let me just say in summary that we're still screwed the according to the bureau of labor statistics jobs grew by a hundred seventeen thousand better than may and june unemployment went down from nine point two to nine point one percent but as desperately as the white house is trying to spin this is good news it's not let me give you a few more details hundred seventeen thousand jobs that's still not enough to keep up with population growth and the reason the national unemployment went down from nine point two to nine point one percent isn't because so many more jobs were created it's because a one hundred and ninety three thousand people left the workforce as they gave up so how convenient for the government they don't have to count in the national

unemployment statistic that they use those people to just give up to that for them we do still have the real unemployment number thank you six so that includes the discouraged the marginally attached those who are forced to work part time for economic reasons and that is at sixteen point one percent. that is real unemployment but it's also the figure the for whatever reason the mainstream media chooses to ignore they just stick with the nine percent because you know you want to give people that depressing truth and bring them down they did at least ask the white house now they've announced that they're pivoting to job creation in the economy what the hell they plan to do about it but this is where it got kind of weird the white house is create jobs and government together white house congress. creates policies that. allow for greater job creation. wait what was that you said to carney the white house doesn't create jobs i find out it's a bit a little confusing especially considering that not only are there

a lot of people that work at the white house but yeah that's nitpicking i also find a little confusing because that's not exactly what we've heard from this administration in the past take a look as the time to jumpstart job creation that is what my economic agenda is designed to do so gentle begins with job saving and creating jobs that have to continue to be our focus in two thousand and six is my administration's overriding focus we will not rest until we are succeeding in generating the jobs that this economy a big challenge right now is creating jobs and making sure the economy takes on. friday how time changes things isn't it now in reality it's actually not funny at all he what this change is rhetoric a change in rhetoric from the white house and that means that it's a change in how they envision this country since when did government created jobs become a bad thing for a democratic administration but about the whole stimulus that you pass even if you don't want to save the white house itself doesn't create them normally they would

say that congress created that but here it's just the mechanism for helping to create policies to create that you know what does the white house has become scared of republicans and in turn they've rejected their own reflection in the mirror and their own party mentality and we learned long ago that you can't call obama a liberal or progressive anymore oh you don't expand shadow wars put american citizens on assassination list offer up medicare and social security and still get to hold the title a government job partly crazy it's not radical no it's pretty damn standard but just because they feel they're going to get some criticism from the right then they'll turn against everything that they've done and say and stand for in the past that is ridiculous that is a ludicrous that is a pivot if i've ever seen one and yet for some reason the mainstream media doesn't bother to follow asking follow up as hey jay carney why the sudden change of heart . why the sudden change in your governing philosophy the blackballing of anybody out there who has a government created drop don't get me wrong i hate bloated bureaucracy just as

much as the next person but you can't act like we can have nobody working for the government and things will just be fine and dandy after a number of states out there how they feel about that state budgets are slashed and people are losing their jobs look at the jobs numbers we've seen over the last few months and ask why it's not getting better well because while the private sector is hiring at the pace of a snail in a wheelchair not only are people giving up many jobs also continue to be lost every single month the were once a part of the government thirty seven thousand of those are lost this month so you tell me about sort of question worth raising to the president or to his press secretary how the hell do you expect the american people to believe a single thing that you say when you capitulate you turn around every single time those are the questions that the mainstream media is content to miss. all right so today's jobs numbers are nothing more short of bad news no matter how

you try to spin it real unemployment still sixteen point one percent job growth is still not up to par with population growth and yet today we have ministration in the media but also let out this collective sigh of relief act like it was kind of good news now of course the rumors of the s. and p. may downgrade the u.s. debt as early as tonight and the administration is rumored to be preparing for it but what does all of that tell you about attitudes towards the economy is simply wrong is the inmate administration wrong is there any in between joining me from our studio in new york to discuss this is kelly evans the head of the tape columnist at the wall street journal thanks for being back on the show and i want to start with this news that we're waiting for in terms of the s. and p. and this threat that they may indeed downgrade the u.s. debt as early as tonight is what they're saying what that actually mean what would that look like for the u.s. economy if that went ahead. this is the big debate people have been having for the last couple of weeks months i have to say i'm sort of with those who say we'll see

if it has any real impact there could be contagion effect immediately from funds that are forced to shed debt or do otherwise but the fact that this won't be a surprise it's been well telegraphed may not be a move from say aaa to double a it may just be a place on outlook negative or something like that means that number one we may not necessarily see any real immediate effect and number two remember there are three rating agencies and a lot of investors when they're making decisions about u.s. government debt or otherwise take the average of those three ratings so while it does matter and certainly will be a huge political move it will affect sentiment it won't necessarily actually change the average rating of u.s. debt and again let's be clear it's been a long time since the u.s. is really better aaa country well you know i have to be mentioned of course that there are three ratings agencies and fitch and moody's already announced that they weren't a downgrade the u.s. debt s. and p. has been holding out this entire time that if he were to go ahead and make that move might we see some kind of a snowball of facts or do the other two have to stick by their word. you know the

civil so i don't think there's no both that the real question is you know it's hard with these kinds of events to know what kind of trading behavior what the what the machines what certain algorithms do automatically once a debt levels are lowered because aside from that there's not really any impact i mean people are still buying treasuries if there was this real fear in the market over going to lose or aaa and that's going to mean something that people would be jumping out of the treasury market not pushing the yields down to two and a half percent on ten year borrowing so i don't necessarily think people really care one way or the other again in the markets now politically totally different story totally different story for confidence etc etc but you know again we'll see if there's any real contagion effect right away from the lowered rating i don't really expect that now politically and confidence wise are talking probably within washington d.c. with the new york do you think of the average american actually cares what the credit rating of the united states is you think the average american cares about

the dow jones falling five hundred points last night is that of frank then when we have the largest number of americans on food stamps in history. oh of course of course i mean look a lot of people have money in the stock market they are hoping to retire and they might have money from a company that they work for so you know anytime we see the stock market fall like it has over the past couple of weeks it does mean that a lot of people may be unable to spend in a way that they had planned on just a couple of weeks ago and certainly it does make people sort of think twice about the amount that they are counting on to retire or to make big purchases and that sort of thing so again you know people are paying attention to the market not only because they have holdings themselves but also because the market does kind of tell you how investors think about the u.s. economy and what we've seen this week is that regardless of what the three rating agencies say about the u.s. you know the prospects for growth aren't all that great and yet the prospects for growth in a lot of other countries aren't all that great either so remember ratings are all relative if someone's got to be aaa i guess we're as good

a contender as anyone at least for now but that's certainly changing over the next couple of years we've seen emerging markets doing so well have lot lower debt levels like greater demographic and growth prospects that ultimately will start to see the u.s. see ending slipping in the world i don't necessarily think that's going to change in the next six months now if we go back to exactly what happened yesterday when the dow fell joe weisenthal the business insider actually called that the piña point that the market just led so far and they got to the worst point they could and then now everything's coming back and they're easing the points are going back up would you describe it that way. get away with words i think if you can point describes it as well as anything and the real question is was the move over or done you're already seeing a lot of investors a lot of wall street strategist putting out notes saying look we think the market's oversold at these levels we think they're still reasons to be relatively optimistic that the u.s. can avoid a recession in the next couple of months and if the stock market as they think is basically priced for recession or close to it and that doesn't materialize there

could be an opportunity to get in here and pick up stocks on the cheap now i'd hesitate to recommend that to anyone but it is interesting to see how quickly sentiment it's changed and i remember just a couple of weeks ago we were levels in the stock market several percentage points higher than this it's not just the level of the declines it's really the speed of that i think it's called people by surprise and so the worrisome thing is you know is that telling us something about the weakness that we're seeing here about financial contagion in the months ahead that people are and certainly on wall street aren't expecting right now i'm just wondering though you know you mention of course that these things move so quickly when it comes to the markets and sure for the last couple of weeks we've seen them going down but then you also can see them shoot back up in just one day so that's why i'm wondering this is actually affect people's four a one k.'s and their retirement plans if they always have to assume that the market that's what it does it's a roller coaster it goes up and down they should be more worried about unemployment or the debt deal that congress just cut. yeah it's never

a good idea i think for people to have business news on all day every day it'll drive you crazy to try to check those statements every week or every quarter obviously we all like to remind people to be in this for the long haul that's easier said than done especially if you're one of the cohort who's facing which they retire ment in the near term or something like that so yes stocks are volatile i think this week is absolutely reminder of that and we saw the trading action today after the jobs report came out it was all over the place and it's really been like that all week i mean we saw for example the dow jones industrial average at first rally on the news and then it sold off sharply and i think the swings intraday today were you know five percent of the nasdaq i mean that's the most we've seen since the flash crash and you know that was last may and there was no flash crash today it just goes to show you the extent to which are investors are really trying to grapple with the outlook here get a sense of whether they're cheap or not whether the u.s. is heading into recession or not every old playbook that we had to try and dictate behavior through these periods i think people are throwing out the window we're in

a new paradigm here it's a new way of thinking about the economy unfortunately it's a way of lowering our own prospects for how quickly we can grow for what kinds of stocks and what kinds of assets are going to do well in that kind of environment and it's just really difficult for even the professionals to make sense of what to do right now well you know i want to segue from that to you as to how the investors are acting right now to opera house the administration or the media or acting right now i mean talk about lowering your standards yesterday of course every this breaking out there watching the markets we had all these predictions of a dismal jobs report that was coming out and we did have a pretty bad jobs report that came out because more people are dropping out of the work force job creation still isn't keeping up with population growth and then tell me if you agree with me here i feel like we are seeing this odd sigh of relief like oh it's really not that bad i think it's pretty damn bad. yeah and i think that's what was happening a little bit in trading action so they were people go initially got that number and said oh my god this is the first time we've had a positive surprise because remember people were expecting a gain of about seventy five thousand jobs so you get that headline saying one

seventeen and the unemployment rate fell for the first time in a couple months people went finally finally we can upside surprise here and that's how you saw the market initially rally and then people start to look through the details of the report which by the way they couldn't do right away because it took the labor department about half an hour even just to get their its website up and running because there were so much demand for the details of this report once people started flipping through it seeing as you point out that a lot of this had to do with people leaving the labor force it is much as there was encouraging news we still only added fifty thousand jobs on average last couple of months before july and again just keeping in mind some of the more worrisome news we've heard lately in terms of the labor market in terms of global growth prospects i think they started to really say you know this is better than expected but it's still not good enough it's still not all that great not good enough and like i said the usaf the real unemployment number sixteen point one percent and that's not good news for americans kelly thanks so much for joining us tonight thanks for having me . coming up cops going after farmers and cartoonists and tell you how local police

have been really hard at work this week and def con if they can place this week in las vegas deeper into why several government agencies are in nevada trying to hire hackers i can still. get up sometimes you see a story and it seems so you think you understand it and then you glimpse something else here's you some other part of it and realized everything you thought you knew you don't know i'm sorry little girl is a big fish. little girl you are the world. and yet all. fuck fuck fuck.

fuck. let's not forget that we had an apartheid regime right. i think iraq is either funny well. or never governor says they're for keep you safe get ready because you're going to their freedom.

you know we just love to talk about cops on this program so that of them breaking down each minute detail of their latest heroics let's just brand this thing and make it a second. that's better right now so yesterday we told you how cops in california saved us from one of the most serious threats plaguing our country now not gangsters or thieves they busted the hippies were trying to kill us with the most unlikely of methods raw milk orange county cops went after rossum foods a local food co-op so what style the los angeles d.a.'s office would not comment but offered a press release some of the charges include processing milk without pasteurization

operating an unlicensed milk plant conspiracy to improperly label seed products and keeping eggs at an improper temperature. that's right what better way than to show up with a swat team and hit the grocery joint to prove your offer already but their bravery basing the threats of unpasteurized on protective food products comes only second to the police in seattle apparently there is a cartoonist on the loose according to cairo t.v. someone who goes by mr phil sticks to making south park failed cartoons about cops within the regular police department and just like south park these cartoons are kind of dirty mister with the whistleblower character is being called has no problems dishing out these sexiest secrets of the russian police department kept number one when you feel like having sex one on duty with a coworker district partner. which means you get. people from

each one one make a. person entire police report to risk their lives running code and they risk the lives of innocent citizens who don't. now everything from hot parties to affairs to middle school style name calling has been shared with the public and of course when the stash it was confronted by internal affairs he shared that on you tube as well . my question about something that is not criminal. policy formulation well actually no but the department does not like laundry being aired in public we do a fine job of keeping to hurt inside. so it looks like airing dirty laundry i mean for his speech is now being treated as a crime in the state of washington cops are on the hunt for a man but the only information they have as of now is that he's an animated cartoon aviators and he has that typical douche style and now by the way anybody who

spotted him is asked to call police have a cartoon is armed and dangerous presumably with a pencil or whatever program he used to create these viciously hilarious animations and why because he's cyber stalking and creating emotional distress for members of the russian police department we all know what happens when they find absurd laws that are intended to protect children and then use them against people that just piss them off so how about instead of going after a cartoonist for calling you out on your lewd behavior how you just don't do it just a thought so they got caught boohoo it happens to the best of us would seriously using police resources to go after a guy who's making cartoons come on get a sense of humor. now we start the conversation on the government's desperate attempts to recruit new happier is on yesterday's program let's take that one step further reports of state of the defense department homeland security n.s.a. and nasa officials have all flocked to las vegas to conferences were held this week black hat and death con and it's not the it don't always go with the more public

nature of hacktivism the discovery of the largest cyber attack in history that's been reportedly carry out over the last five years definitely seems like they're having a little trouble keeping up so who exactly are they going to find there i guess we might never know since a one hundred fifty dollar entrance fee is cash only and no idea is required to register but let's talk to somebody who actually goes every year and is willing to stick it to any of the deaths on conference is rich mogul analyst and c.e.o. of secure as this it's thanks so much for joining us tonight so like i said you got a death card every year but for those of us that are outside the bubble tell us what it's like oh you know you have consecrated barker minutes notice the world's biggest hacker operations and i. don't mean bad guys great going to computers to see your money we people who are interested in exploring kind of the edges of technology and cannot put your hands around and see what's around the corners that most people normally don't look at so it's just

a fascinating place you've got people talking about everything from you know different techniques unit computers to techniques or building better robots or somebody has to do is to demonstration are not how we get so there's all sorts of a really interesting things going on but so i obviously these people have the skills if they want to i guess break into a computer and go into someone's bank account and take all that but say that's more security minded this is more about security firms or people who would want to work with the government rather than you know some other type organization. well if the conference is really about the hacker community itself so it's considered more of a kind of community oriented and some of the people here are interested in media work or the government or security companies but it's more people who consider themselves hacker part of the hacker culture than anything else so we can't really say you know people like myself we work for companies and we work within the security industry there's teenagers here there's a what we call def con kids which is where people are bringing their five to

seventeen year olds in to learn about these sorts of things as well as just anyone and everyone who's kind of interested in technology now he's one of the differences between def con and between black hat which i know also is going on the sleek yet so at def con is very culture oriented event or community oriented event black hats for the corporate guys so a lot of the same presenters and def con a lot of these if you think about some of the best of the death. or more corporate focused and people who attend on one hundred fifty dollars you know over a thousand dollars for a ticket they're just be paid by their companies and that's where both government and workers and security professionals go to learn from some of the top level security researchers out there i said tell me why the secrecy if we go back to the death on for a moment we're talking about one hundred entrance fee but you know i gave you know to sign a and nobody ever has to know that you were there. well the bigger remember about

def-con it is this is the nineteenth you see peter event and some of the people bit like the ten day event to keep their in our committee you know while people like myself were out there work within the security community others only go by handles who don't want to but you know their real name is here to be honest sometimes it's just the cultural affectation sometimes people just want to be able to go and learn and not have anybody have any idea that that's where they went and you know some of this is the holdovers from the days were if you go to one of these events somebody might be keeping track of who you were i you know that doesn't really happen anymore but there's just a lot of history behind it so a lot of their hearts will tell you that as i mentioned earlier the department of defense department of homeland security that the n.s.a. the nasa always descend on these conferences because they're always looking for new recruits and i think that's especially true now that i say for example i know is planning on hiring fifteen hundred more people by the end of this biscoe year in september they want fifteen hundred people more for next year can you tell who

these people are when you're out of a conference. sometimes you can now if you can there's actually was going to stop at that contest and you can win a t. shirt so you actually find a stat number you pretty good then on stage you explain why you believe that person is a pedant they produce credentials you get a t. shirt that says i spotted the fed and they didn t. shirt that says i'm the fat and we had to change the rules a few years ago because all the pads were spotting each other because they don't want to do t. shirts that you change up there are people here who are what we call people knew they were crazy caesar's actually if it's paint they get up there people it's called meet the parents and i can talk to them and ask questions so there's nothing that not in there had been in the past people who were here are shall we say shall we say you know not necessarily undercover but not advertising who they work for so you may or may not know who they are they're just they're not necessarily your to recruit or anything else you know they just let you do the security people here to stay here for educational purposes now if we look at what's been going on recently

you know as i mentioned we've seen hopped of isn't become a very public now with groups like anonymous and with all the kerry does it seem to you out of course that we just found out about operation shady rabbit pallies they go on for five years does it seem to you like they have a lot of learning to deal with the government in these. you know it's a it's a tough position first of all i was like him a little credit because let's think about the scale of the u.s. government and some of the things that the anonymous the low six out there weren't any serious breaches of any cost and government systems are shady rats a little bit different but that's probably an asian state activity which is pretty difficult you know i would say that within certain sectors of the government yeah there's definitely some issues in there slowly working through those but you know any large group or accuracy is just going to add its problems by the same token you know every year especially. when it's a very very small. item that i don't know about but you know odds are as we might

be a little bit short in that i think they might be a little short handed i'm wondering what the attitudes are like for example last night on our program we were speaking to david house and you know i've also seen people tweeting they don't sell out for the feds if you're a hacker there are so many other organizations you can go to these days be a humanitarian organization you think of that attitude kind of her veils don't don't sell out even if they're offering you a lot of money. you know i would say prevails i think it was there's a lot of competing attitudes here and for every person that says don't sell out somebody else is handing over a business card or giving your phone number and really you know there's a lot of competing kind of demographics a lot of different groups are also some people think you know let's be honest are borderline artists type suit and they getting government is bad there's others that recognize hey i can do more good work from within the government where if i do see bad actions then i can become you know but my job is to stop that so i you know i

love to tell you there was one attitude that it was all. you know when i'm sitting here in the speaker's room when i am walking around with some of those ads were one of my jobs is to score people to their talks and those sorts of things you know there's just as many people who are as interested in what they do as are upset that their heroes are now really great they can just tell me a little bit more about this death conferee caving here trying to recruit young hacker is at a very early age i guess you could say are the least teaching them to be a good hacker well yeah i mean and that's a whole pay i mean every year people aren't telling you how to break into computers like there's a lot of presentations up here is how i broke into a back i mean i suppose you could do that it would probably be a very short presentation consider the number of tickets in the audience but what we're doing is so get one kid something new that started this year and actually has a relationship something called the act kids program which was started out last night on a minute i saw and the idea here is to give kids more interesting ways to learn science it's. outside it's similar to. your stairs this is

more the hacking oriented version of that it's teaching kids basic programming skills it's teaching kids ballistics look a little catapults those things a lot about was sticks and engineering and in physics teaching kids hardware hacker their actual play with hardware in all sorts of ways and or how those things work so it's really focused on making kids stream student science and technology it's not about teaching them how to break into computers i will i'm sol that sounds like a good idea i think our kids need to learn more about science and technology especially if that's the direction that employment is probably going to read thanks so much for telling us and no problem thanks for having me. so to come tonight a birthday a barbecue and hip hop are three of the elements that i still have a war going to tell you more when we come back and he asked actor matt damon a few questions that it seems to rally in his response constantly for everything reporter joins us to discuss the issue and more in just a moment.