mr president. wealthy british style it's time to rise. in the. markets why not. find out what's really happening to the global economy in cars a report. for the full story we've got it from. the biggest issues get a human voice face to face with the news makers.

america's aaa credit rating downgraded for the first time in the country's history rating agency standard and poor's has knocked the u.s. down one to double a plus i made concerns about growing budget deficits this as a global stock markets falter in the face of growing euro zone debt raising fears of a double dip recession. president medvedev warned syria's president will have a sad fate if he doesn't implement reforms there's house report say more than a thousand people have been killed since one arrest started in march. ukraine's former prime minister yulia timoshenko detained for contempt of court infuriating her supporters outside the courthouse where she's on trial for the use of power she's accused of bankrupting ukraine's economy with a russian gas bill but she maintains her innocence saying the trial is

a political witch hunt. part one of the alone a show coming up stay with us. we've got. the biggest issues good voice ceased to face with the news makers. welcome the ilona show we look at the real headlines with none of the mercy i 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 p. downgrade u.s. debt that will take a look inside defcon we'll see if this is really prime real estate for government recruitment of hackers averageness b. 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're going to have all of that and more frater night including a dose of happy hour but first let's take a look at what the mainstream media has decided to make. our it's a day job 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 combined 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 one hundred 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 now to that for them we do still have the real unemployment number the q 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 that 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 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 for the white house is create jobs the government together white house congress. creates policies that. allow for greater job creation. wait what was that you said jay carney the white house doesn't create jobs i find that statement

a little confusing especially considering that well 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 jumpstart job creation that is what my economic agenda is designed to do so the gender the begins with jobs saving and creating jobs have to continue to be our focus in two thousand and ten as 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 off. it's funny how time changes things isn't it now in reality it's actually not funny at all what this change is 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 what 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 it's just the mechanism for helping to create policies to create that you know what this is 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 hell you don't expand shadow wars put american citizens on assassination lists offer up medicare and social security and still get to hold that title a government job 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 then they'll turn against everything that they've done and said 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 i ask a 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 job 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 ask 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 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 that 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 or thought 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 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 the media they all seem to let out this collective sigh of relief act like it was kind of good news now of course there are 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 what does all of that tell you about attitudes towards the economy is the wrong is the 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 would that actually mean what would that look like for the u.s. economy if that went ahead. this is been the big debate people 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 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 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 triple any country well you know i have to 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 but if s. and p. 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 symbol 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 what kind of trading behavior what the what the machines what certain algorithms do automatically once a debt levels or 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 our 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 we're talking probably within washington d.c. within 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 does that affect them 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. only 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 puking point that the market just went so far and they got to the worst point they could and then now everything's coming back and they're easing the points or 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 strategist putting out notes saying look we think the market's oversold at these levels we think there are 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 a 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 they hesitate to recommend that to anyone but it is interesting to see how quickly sentiment it's changed you know 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 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 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. 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 were tire meant 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 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 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 wait from that to how the investors are acting right now to how perhaps the administration or the media are acting right now i mean talk about lowering your standards yesterday of course everyone's freaking out because they're 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 and 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 where people got initially got that number it 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 get an upside surprise here and that's how you saw the market initially rally and then people start to look to 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 if 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 the tension with people leaving the labor force that as much as there was encouraging news we still only added fifty thousand jobs on average the 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 you say it's 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 can tell

you how local police have been really hard at work this week and def con is taking place this week in las vegas and i will delve deeper into why several government agencies are in nevada trying to hire hackers back in just a month. old . retired elitists in science and technology from the realms. we're going to the future of covered.

you know we just love to talk about cops on this program so out of them breaking down each minute detail of their latest heroics let's just brand this thing to 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 you know 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 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 an unlicensed milk plant conspiracy to improperly label sued 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 author already by 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. is someone who goes by mr fiddlesticks making south park style cartoons about cops within the renton police department and just like south park these cartoons are kind of dirty mr stash you know as the whistleblower character as being call that has no problems dishing out these sexiest secrets of the renton police department tip number one when you feel like having sex while on duty with a coworker or district partner don't. let you get up and think it would be funny to want to make a point that there's an entire police department to risk their lives running code and then to risk the lives of innocent citizens don't. now everything from hot tub parties to affairs to middle school style name calling has been shared with the

public and of course when mustache it was confronted by internal affairs he shared that on you tube his well. being questioned about something that is not criminal has any rules or policy violations occurred well actually no but the department does not like laundry being aired in public we do a fine job of keeping her 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 renton cops are on the hunt for a man but the only information they have as of now is that he's an animated cartoon he wears aviators and he has that typical do style list now by the way anybody who spotted him is asked to call police have a cartoonist 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 renton police department and 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 pissed them off so how about instead of going after a cartoonist for calling you out on your lewd behavior have i 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 off on 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 of state of the defense department homeland security n.s.a. and nasa officials have all flocked to las vegas for two conferences were held this week black hat and def con and it's not the it don't always go but with the more public nature of hacktivism the discovery of the largest cyber attack in history that's been reportedly carried 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 or registered 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 which 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 consecrating barkman it's known as the world's biggest hacker copper and by hand 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 going to put their 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 your different techniques operating in the computers to techniques for building better robots or somebody has to go is doing a demonstration on our helloween decorations so there's all sorts of really interesting things going on around 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 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 at the con conference is really about the hacker community itself so it's considered more of a kind of community oriented but that 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 we 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 to learn about these sorts of things as well as just anyone and everyone who's kind of interested in technology now can you tell me what the difference is between a def con and between a black cat which i know also is going on this week. yes so a def con is a very culture oriented event or community oriented event blackouts for the

corporate guys so a lot of the same presenters in depth on a lot of these if you think about some of that the best of the best. and. more corporate focused and the people who attend def con one hundred fifty dollars it's you know over a thousand dollars for a ticket there are ten to be paid by their companies and that's were both 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 think or say if we go back to the death on for a moment we're talking about the hundred fifty entrance fee but no i gave you up to sign a and nobody ever has to know that you were there. well the thing to remember about def-con is this is the nineteenth to be of that and some of the people that like that tend the event i like to keep there and not committee you know while people like myself are pretty public we're out there work within the security community others only go by handles who don't want anybody know the real name is yet to be honest sometime it's just

a the cultural affectation sometimes people just want to be able to go and learn and not have an peabody have any idea that that's where they went and if you know some of this is the holdovers from the days were if you did 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 sell a 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 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 fiscal year in september they want fifteen hundred people more for next year can you tell who these people are when you're at the conference. sometimes you can now if you can there's actually what's known as the spot that contests and you can win a t. shirt so you actually find a staff member you bring event on stage you explain why you believe that person is a bed and if they produce credentials you get a t. shirt that says i spotted the fed and they get a t.

shirt that says i'm the fat and we had to change the rules a few years ago because all the feds were spotting each on either because they don't want to the t. shirts that had to change up but there are people here who are what we call over people knew they were created caesar's actually in fed's pants they get up there people can and it's called meet the feds they can talk with them and ask questions so there's nothing it's not that there have been in the past people who were here shall we say what shall we say you know not necessarily undercover but but not advertising who they work for so you may or may not know who they are lots of times they're just here to learn they're not necessarily or to recruit or anything else you know they just like we do it in the security field they're just here for educational purposes now if we look at what's been going on recently you know as i mentioned we've seen hacktivism become a very public now with groups like anonymous and with laws they carry does it seem to you and of course that we just found out about operation shady ravager pallies been going on for five years does it seem to you like they have

a lot of learning to deal with the government agencies. 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 wall six stop there weren't any serious breaches of any class of government systems of all shady rats a little bit different but that's probably a nation state activity which is pretty difficult you know i would say that within certain sectors of the government yeah there's definitely some issues and they're slowly working through those but you know any large or ocracy is just going to have its problems by the same token you know every year especially didn't. it's made some very very small and the government. i know them but i don't know about but you know we might be a little bit short handed and they might be a little short headline wondering what the attitudes are like for example last night on our program we're speaking to david house and you know i've also seen people tweeting today don't sell out to the feds if you're a hacker that there are so many other organizations you can go to these days be

a humanitarian organization do you think of that attitude kind of prevails don't don't sell out even if they're offering 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 giving their phone number and really you know there's a lot of competing trying to vom demographics a lot of different groups are involved so some people think you know let's be honest or borderline anarchist type suit if they get it in government is that 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 could be gone 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 all well you know when i'm sitting here in the speaker's room when i'm walking around with some of those fences were one of my jobs is just 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

can you just tell me a little bit more about this def con for a cave where you're trying to recruit young hacker is at a very early age i guess you could say or the least teaching them to be a good hacker well yeah i mean and that's the whole thing i mean everything your people are telling you how to break into computers right there's a lot of presentations up here 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 tickets in the audience but what we're doing is so death con kids is something new that was started this year and actually has a relationship something called the act kids program which was started out boss my friend my name chris hop and the idea here is to give kids more interesting ways to learn science it's. attack outside of a motor studio there's fairs this is more the hacking oriented version of that it's teaching kids basic programming skills it's teaching kids ballistics little bit little catapults and those things a lot about ballistics and engineering in and physics teaching kids hardware hacking or they're actually.