missions for. booking below the show will get the real headlines with none of the mercy for human 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 that that will take a look inside that car and see if this is really prime real estate for government recruitment of hackers and bridges 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 to night including a dose of happy hour but first let's take a look at the mainstream media has decided to move. parts of the 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 that are the 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 statistics that they use those people they just give up too bad for them we do still have the real unemployment number thank you six so that includes the discouraged the marginally attached those who are of course to work part time for economic reasons and that is that sixteen point one percent that is real unemployment and is also the figure that 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 well he 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 find a do about it but this is where they got kind of weird the white house this jobs the government together white house congress. creates policies that. allow for greater job creation. wait what was that you say take our to the white house doesn't create jobs i buy that seemed 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 is ministration in the past take a look as the time to jump start job creation that is what my economic agenda is designed to do so again the begins with jobs stating and creating jobs have to continue to be our focus in two thousand and six is my ministrations 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. funny 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 so why did government created jobs become a bad thing for a democratic administration or about the whole stimulus that you pass even if you don't want to say the white house itself doesn't create them normally they would

say that congress created them but here is just the mechanism for helping to create policies to create. 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 lists offer up medicare and social security and still get to hold the title of government job for something crazy it's not radical no it's pretty damn standard but just because they feel that they're going to get some criticism from the right and they'll turn against everything that they've done and say and stood 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 and state budgets are slashed and people are losing their jobs look at the jobs numbers that 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 were lost this month so you tell me if that's not a 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 and you capitulate you turn around every single time but those are the questions that the mainstream media is content to miss.

all right so today's jobs numbers were 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 the administration 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 s. and p. 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 has been the big debate people been having for the

last couple of weeks months and 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 will be a surprise it's been well telegraphed it 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 the 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'll 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 or you know i'm happy the mention of course that there are three ratings agencies and fitch and moody's already announced that they were going to 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 is so i don't think there's no ball effect the real question is you know it's hard with these kinds of events to know look kind of trading behavior what the with the machines what certain algorithms do automatically once a debt levels are 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 that over going to lose or aaa and that's going to mean something then people would be jumping out of the treasury market not pushing 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 competence 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 we're talking probably within washington d.c. within new york do you think 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 a fact 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. the prospects for growth aren't all that great and yet 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 and 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 puking 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 and the points are going back up would you describe it that way. joe's got away with words i think if you can point describes it as well as anything and the real question is was the move over done you're already seeing a lot of investors a lot of wall street strategists putting out notes saying look we think the markets 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 price 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 aren't and certainly on wall street aren't expecting right now one just wondering though if 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 what i'm wondering this is actually affect people's for a one pays in 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 will 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 more say retirement in the near term or something like that so yes stocks are volatile i think this week is absolutely or i'm sure 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 intra day 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 such 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 say from that suicide how the investors are acting right now if you opera house the administration or the media or acting right now i mean talk about lowering your standards yesterday of course every was freaking 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 today were people initially got that numbers that 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 get another side 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 that took the labor department about half an hour or even just to get their its website up and running because there was so much demand for the details of this report once people started flipping through it seeing as you point out that a lot of essentially with people leaving the labor force that 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 we can 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 that travel delve deeper into why several government agencies are in nevada trying to hire hackers i can finally. get some closure see a story and it seems so you think you understand it and then you glimpse something else here's you some of the part of it and realized everything you thought you knew you don't know what i'm charging welcome to the big show. the world we are the elite and all. fuck fuck fuck

fuck. let's not forget that we live in apartheid regime right. i think. even funny well. we never got the book says they're going to keep you safe get ready because you're looking for freedom.

you know we just love to talk about cops on this program so out of the breaking down each minute detail of their latest heroics let's just grab this thing for making 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 wrong milk orange county cops where after awesome food a local food co-op swat 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 in 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 at a hippie grocery joint to prove your are already by their bravery facing the threats of unpasteurized unprotected 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 fiddlesticks making south park style cartoons about cops within the regular police department and just like south park these cartoons are kind of dirty mr daschle who was the whistleblower character as being call that has no problems dishing out these sexiest secrets of the rent and police department to number one when you feel like having sex while on duty with a coworker or a district partner. when you get. so you can be funny to

want to make a. police report to risk their lives running code and they risk the lives of innocent citizens 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 mr ashley was confronted by internal affairs he shared that on he was well. being questioned are something that is not criminal as the new rules are a policy for your lessons occur well actually no but the department does not like laundry being aired in public we do a fine job of keeping to her inside. subtle looks like airing dirty laundry i mean for the speech is now being treated as a crime in the state of washington and 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 in the stash now by the way anybody

who spotted him is asked to call police at a cartoonist is armed and dangerous presumably with a pencil or whatever program he used to create these are 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 cops get angry 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 i just don't do it just a thought so they got caught boo hoo it happens to the best of us would seriously using police resources to go after a guy who's making cartoons come. get a sense of humor. now we started a conversation on the government's desperate attempts to recruit new hackers on yesterday's program let's take that one step further reports the state of the defense department homeland security n.s.a. and nasa officials have off locked to las vegas or to conferences were held this week black hat and def con and it's not always go but with

a 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 that really 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 speak on it joining me from the def con conference is rich mobile analyst and c.e.o. of secure osis 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 well you know give consecrate gartman it's known as the world's biggest hacker copper and i. don't mean bad guys but you know computers to steal money when you people who are interested in exploring kind of the edges of technology and kind of put their hands around and see what's around the corners that most people normally don't look at so it's just

a passing clichy got people talking about everything from you different techniques to computers to techniques or better route bots or somebody has to do is to demonstration on our helloween decorations so there's all sorts of really interesting things going on here 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 i 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 others have organization. the unconference is really about the hacker community itself so it's considered more of a kind of community oriented at some of the people here are interested in maybe work for 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 who work for companies and we work within the security industry there's teenagers here there's what we call def con kids which is

where people are bringing their five to seventeen year olds in a letter about these sorts of things as well as just anyone and everyone who's kind of interested in technology nothing to do with the differences between a death between a black cat which i know also is going on this week yet so a defcon is very culture oriented event or community oriented event blackouts for the corporate guys so a lot of the same presenters and kept on a lot of be said if you think about some of it the best of the death. for corporate focus and the people who attend that con some one hundred fifty dollars you know over a thousand dollars for a ticket they're testing paid by their companies and that's where the government didn't 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 the hundred entrance fee but you know i gave you all to sign and nobody ever has to know that you were there. well the bigger remember

about def-con is that this is the nineteenth european at and some of the people that like that tend the event to keep there and i'm going to you know while people like myself pretty tall played out their work within the security community others only go by handles you know anyway you know the real name is you know to be honest sometimes it's just the cultural affectation sometimes people just want to be able to go and learn and not have been people who have any idea and that's where they went and he you know some of this is a holdover 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 but so lot of the reports will tell you that as i mentioned earlier the department of defense that department of homeland security that the n.s.a. that nasa always descend on these conferences because they're always looking for new recruits and i think about especially true now that say for example i know is planning on hiring fifteen hundred more people by the end of this fiscal year in september they've got fifteen hundred people more for next year can you tell who

these people are when you're at the conference. well sometimes you can now if you can there's actually was on the spot that contests and you can win a t. shirt so you actually try to september you bring the fan on stage you explain why you believe that person is and if they produce credentials you get a teacher that says i spotted the fed and they get t. shirt that says i'm the fact and we had to change the rules a few years ago because all the feds were spotted you chop either because they don't want to t. shirts that you change up but there are people here who are what we call over people knew they were there you can see it's actually if it's paint they get up there people it's called meet the fans they can talk with them and ask questions so there's nothing you know about it there have been in the past people who were here . 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 here to learn they're not necessarily your to recruit or anything else you know they just thought it would be going to security people are just here for

educational purposes now if we look at what's been going on recently as i mentioned we've seen activism become a very public now with groups like anonymous and with all say kerry does it seem to you and of course we just found out about operation say the radical palace and go on for five years does it seem to you like they have a lot of learning to deal with the government in things. you know it's it's a tough position first of all i was like even a little credit because i would think about the scale of the u.s. government and some of the things that the anonymous the wall six up there weren't any serious breaches of any cost 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 but the same token you know every year especially in. it's when it's a very very small. item but i don't know what's out but you know the odds are as we

might be a little bit short handed i think they might be a little short had i'm wondering what the attitudes are like for example last night on our program we were speaking to david house. you know i've also seen people tweeting they don't sell out to the feds if you're a hacker there are so many other organizations you can go to these days be a humanitarian organization if you think of that to kind of prevails don't don't sell out even if they're offering a lot of money. you know i would say it 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 getting their phone number and really you know there's a lot of competing kind of demographics lot of different groups who are also some people think you know let's be honest are borderline an artist type suit and they get a government is bad there's others that recognize hey i can do more good work from within the government or if i do see bad actions not because you know that my job is to stop that so i you know i love to tell you there was one attitude that it was

off but you know when i'm sitting here in the speaker's room but i'm walking around with some of those beds as we're going to my job just as for 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 they're here at all now really quickly who just tell me a little bit more about the def con frank a very you're trying to recruit young hackers at a very early age i guess if they are the least teaching to be a good hacker well yeah i mean and that's the whole thing and everything here people are telling you how to break into computer site there's not present patients out there is how i broke into a bank i mean i suppose you could do that it would probably be a very short presentation considering the number of fits in the audience but what we're doing is so damn good something new that we started this year and actually has a relationship something called the hack kids program which was started out boss my friend about it grasshopper and the idea here is to give kids more interesting ways to learn science it's. and take it outside of. her 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 and learn about ballistics and engineering and physics stitching kids hardware hacking or their actual play with hardware in it in all sorts of different ways and or how those things work so it's really focused on getting kids interested in science and technology it's not about teaching them how to great you know computers i will i'm sol but 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 reach thanks so much for filling us in no problem thanks for having. so to come tonight a barbecue and her pop are three of the elements and i still have a war going to tell you more when we come back and he asked actor matt damon a few questions that are key to rally his response and laughter or even the porter joins us to discuss the issue and more into a thing off.