coming up we'll start you like america's internet insecurity has politicians worried and contractors touting the dollars. to the capital account i'm lauren lyster. and what drives the world the fear mongering used by politicians who makes decisions to break through it's already been made can you trust no one. with a global reach where we had a state controlled capitalism it's called sessions when nobody dares to

ask we do our tea question more. welfare is of a new war brewing in america but this one isn't in a combat zone and doesn't involve weapons cyber wars sparking fear among political leaders today and rhetoric is heating up in washington the dangers of cyber war equating it to a form of terrorism the pentagon is responding by pumping money into enhancing cyber security and as arctic correspondent lizzie caffein of reports military contractors are lining up to cash in on the latest military fear. it may seem like a quiet day in america but to some it's the scene of a raging battle invisible to the naked eye where there is war underway right now on the internet this is cyber war is the u.s. ready for a full scale cyber war a question asked at the highest levels of the u.s.

government by fears of a new type of w.m.c. a weapon of mass disruption in a world where acts of terror could come not only from a few extremists in suicide vests but from a few keystrokes on the computer the f.b.i. warns that those keystrokes could soon be more dangerous to america than terrorism itself the cyber threat or equal or surpass the threat from counterterrorism in the forseeable future a future that's got the world's military superpower preparing for the fight ahead of the next pearl harbor that we confront could very well be a cyber attack that cripples our our power system certainly our grid cyber war cyber pearl harbor frightening language for a hypothetical scenario one that could happen but hasn't yet and some security experts like jim harper warned that it never will is no chance whatsoever that nuclear power plants will be hacked that electric infrastructure will be hacked and taken down for any significant period of time so the worst we can expect is

disruption that's not war it doesn't really terrorize so the threats are serious but they're not to the level of war or terror yet some of the key leaders in the war on terror are now in the business of cyber war michael chaired off once ran the department of homeland security he now runs a cyber security consulting firm you could have a cyber attack that would be as consequential in terms of the economy maybe even in terms of loss of life as things were to prepare yourselves here with more friends once america's top spy chief mike mcconnell now oversees cyber operations for the events contracting giant where. most volatile nation on earth to a cyber attack and anti-terrorism czar richard clarke went from advising presidents on cyber security to publishing books about the coming cyber war for once it would be nice for the united states to be able to get out in front of a catastrophe to be able to prevent that catastrophe we know how to do it

we just need to spend the money and the money is flowing the u.s. government will spend more than ten billion a year on cyber security by two thousand and fifteen you know worldwide market that's estimated at eighty to one hundred forty billion dollars a year the budget there we're releasing today it's one of the few areas where the white house plans to increase spending despite other defense cuts and that some say is the problem it's going to be even more tempting for folks and you know the defense contracting community for example to hype cyber threats because that's one of the if used time that money you know sort of still exists forbes magazine contributor sean lawson is an expert in cybersecurity it's a classic case of an attempt to sort of motivate a response by rally the troops by appealing to fear uncertainty and inside the beltway fear and uncertainty can lead to big business and big bucks most people

don't understand the problems with computer and data security most people in washington don't understand it specifically most people in congress don't understand therefore the quote unquote beltway bandits are in a position is to create the problem to state the problem and offer their own services as a solution. a battle does rage here invisible to the naked eye a war for money contracts and powers of. t. washington. and well you better watch what you tweet these days because big brother could be reading as the obama administration plans to double cyber security funding the department of homeland security now plans to monitor social media meanwhile the sofa bill that sparked outrage over free over online freedom it's back but under a new name so as big brother widens its cyber reach what does it mean for your online freedoms well to talk more about this is ginger mccall director of affix

open government program and the i p i o p program welcome to our program ginger so d.h. s. is now expanding their monitoring social media and this has civil liberty advocates concerned why is that well first department of homeland security does not have the legal authority to engage in the sort of monitoring that they are engaging in it's well outside of the bounds of their statutory mandate second to this sort of monitoring has the very real potential to chill on line speech especially legitimate criticism and dissent against the government and i understand that you you're an attorney and your organization is filed a freedom of information act to the department of homeland security to get documents pertaining to social media monitoring what was the response that you got from that we got no response actually for about nine months until we filed a lawsuit against the department of homeland security under the freedom of

information act and at that point we received about three hundred pages of documents from them detailing this program and i understand that you got more documents today anything in there that was revealing her eye opening or that higher interest in terms of monitoring of social media by the h.s. what we found in these documents is that the department of homeland security paid about eleven million dollars to general dynamics to engage in media monitoring not just for the sort of terrorism threats or whether. disaster threats that you might expect they would be monitoring but also for reports that quote reflect adversely on the agency for public reaction to policy proposals by the department of homeland security and even possibly the obama administration more broadly and for any sort of news stories that speak positively or negatively about v.h.s. or any of its components so i mean what does this all mean for the average citizen and the average on line user i mean obviously social networking sites are huge

these days and why should the average internet user be concerned about this well i think a good example of why user user should care is within these documents there was a report authored by the department of homeland security to instruct the analysts the media analysts on what to look for and one of the things that they held up as a good example was a summary report about public reaction to the proposal to move kuantan the most detainee is to standish michigan and they were scraping information from facebook from twitter from the washington post comment section there's just there's there's no reason there's no earthly reason under their particular statutory mandate why they should be doing this it doesn't forward a national security interest it doesn't forward any sort of safety interest it's just it's merely monitoring for criticism and dissent what about the argument for an online user that's like a you know this is not this is being blown out of proportion and you know if i'm

not if they want to read about what you know i'm tweeting what i'm doing today and they're not really infringing on my you know my day to day lives that they're more looking out for for things that might cause a security concern what do you say to that argument if you have a government constantly looking over your shoulder listening to what listening in to what you're saying noting that down collecting that information retaining it for who knows how long it will affect the way that you speak it will affect your ability to criticize and. dissent against the government so you're saying that there is the possibility that this could get out of hand yes certainly. seems in part politically motivated it's the department of homeland security looking for anything that reflects adversely on the department of homeland security they're protecting themselves instead of protecting the american public and why do you think they would do that well to protect themselves again to protect their own interests from a. public relations standpoint but they're spending taxpayer dollars on this when

they really ought to be focusing their efforts on things that will protect the american public another thing president obama he had now in his budget recently released double spending on cyber security. do you think that the fears now today over cyber security and cyber warfare are justified certainly if there's this idea that. a lot of times national security fears are overblown and that's that's often valid what we see again and again in the national security realm is that there's a national security theater we're all told that we should be afraid of a particular incident occurring even though statistically there's not so much of a probability of that and then vast amounts of taxpayer money are spent on programs that surveil the people that are that are overly intrusive and usually outside of the statutory bounds of the agencies involved now should people these days should

they be concerned about what they are saying online in the wake of these new laws i mean even you as an online user are you concerned about what you say and what you tweet and what you do put out there people need to push back on the department of homeland security they need to let congress know that they're on happy with this program and express interest in there being oversight of this program. thank you so much for coming on the show that was ginger mccall director of epix open government program and i p i o p program. and be sure to stay tuned for the alone a show that's coming up in just a half an hour tonight alone oh well dig even deeper into the cyber threats american lawmakers are so afraid of and also asked senior research fellow at george mason university gero jerry britto if these fears are being blown out of proportion but that is going to do it now for the news for more of the stories we

covered you can head on over to our dot com slash usa and you can also check out our youtube page it's youtube dot com slash r t america you can also follow me on twitter at liz wall we'll see you right back here at seven.

max keiser this is the ca's the report let's look again at what's happening in germany and athens. max kaiser germany's carthaginian terms for greece now ambrose evans pritchard of the telegraph says the last time germany needed a bailout from world creditors it secured better terms than shattered greece last week so in one nine hundred fifty three recall there was a london debt agreement whereby creditors for all of germany's debt agreed to take a fifty percent haircut on german debt quote statesmanship prevailed the finance ministers of the day agreed to overlook the moral origins of that debt and the moral hazard of rewarding a country that had so disturbed the european order yeah well this is interesting isn't it of a double standard here the germans got

a huge break on the debt back in one nine hundred fifty three other countries rallied to give them a break because they felt that it was in everyone's best interests now here we are twenty twelve and germany's in a position to return the favor but they bought well exactly as ambrose evans pritchard uses the term carthaginian carthage pieces a piece in which the vanquished has destroyed utterly a peace deal that once you are wiped out wiped off the face of the earth that's right they employ the scorched earth approach to carthage that is the say the romans did and they just scorched it they have blitter eight of it now here you have germany applying a scorched earth roman attacks carthage style a bullet aeration of grace of athens it's a nobody's interest and it's not even in germany's interest. well actually wolfgang schauble cording to this article he was actually quoted caught on tape anyway

talking to a portuguese finance minister and which he said to the portuguese minister don't worry we're not going to do this to you this is our treatment of greece's in order to appease our population at home right exactly this is amazing it's coming through now that the policy makers in germany that are applying the scorched earth policy to greece are doing so to appease their local constituents who want blood for some reason they're just bloodthirsty which then brings up all kinds of other questions about who is the germany of old is this to germany we remember from world war one and two is this the imperial genie out of the bottle once again each failure is a scribe to lack of moral fiber not the design flaws in the currency project that shall bill himself helped create and forced on the german people against their wishes belief that e.m. you fall out from greek exit or great in market slang can be contained by far walls and more fiscal austerity assumes that greece is

a special case alone brought low by turpitude you're right the idea that the scapegoating of the greek people that they are of low moral character and therefore deserve what they get we see again this is something is historically by the germans by the way not in the too recent past to confiscate wealth from another group of people and of course during the german confiscation of wealth in the thirty's and forty's they use ethnic division here they just use the new globalization of financial derivative products to carve out their empire and attack those like the greeks using credit default swaps that they can create in the derivatives market hundreds and hundreds of billions of them used to attack greece's economy and to confiscate that wealth yeah and as part of the propaganda of course that was used against the carthaginians the same sort of their immoral and they kill babies the same thing. you've seen sort of the same sort of propaganda against the greeks you've heard stories that they leave their leaving their babies on doorsteps

because they're so hungry that it's part of the same sort of psychological warfare you know the question is where is germany go in with all of this because ok they've got the biggest economy in the world the strongest most dynamic economy in the world the second or first biggest export market in the world great employment numbers are rising it's a friend it's an emerging superpower that's true it's going to break out of the euro looks that way it's going to ally with other countries this is an interesting development please continue well carthage must be destroyed oh east and that's where they're going with it portugal spain italy you know those are the next ones well hopefully they won't be on paris's doorstep too soon now of course the war between rome and carthage was control of sicily and that important sea routes now the equivalent in modern times is of course the straits of hormuz so let's move on to that currency war going on over there around presses ahead with the dollar attack so this is also from the telegraph and they say last week the turan times

noted that the iranian oil bourse will start trading oil in currencies other than the dollar from march twentieth this long planned move is part of president mahmoud ahmadinejad's vision of economic war with the west now of course this also seems to be some sort of propaganda every time we're in some sort of like a tense moment they bring out this bourse we've been hearing about it for almost ten years now going back to when saddam was saying was going to trade oil in other currencies other than the dollar which brought about shock and awe and then of course there are the same thing coming out of iran oil bourse so currency wars you see it in europe now we see it in the middle east and you're saying the. raney and people the iranian government wants to do non u.s. dollar denominated oil training and this is heating things up right this is a driving force it's not about the nuclear weapons it's about this currency war as i was just saying i'm saying why. never knows who knows about whether or not the carthaginians killed their babies because the victor always writes the history here

is the same as part of the propaganda one never knows if their killing their babies are actually going to trade oil in dollars we don't know but it seems to come up over and over that this is a psychologically important move ok let's just go to digress for a second let me ask you first let's the say it is about the currency and it's not about nukes ok let's blow this do a little thought exercise here using jim rickards currency wars as the paradigm what would be the appropriate counterattack from the iranian action as would it not be for them to introduce a gold backed currency as another way to slam a nail into the dollar's coffin. that also be true if they're fighting against an empire this is the way that empire is able to extract in the modern day the wealth of around the wealth of germany the wealth of greece the wealth of china it's because when nothing backs the u.s. dollar but you have to keep them in your goods this is your senior age this is them

controlling sicily this is them controlling the straits of hormuz you know iran says they control the straits of hormuz but if you're paying for that oil to go through there in dollars. the emperor controls the straits of hormuz ok good point now the telegraph says iran has the third largest oil reserves in the world and pricing oil in currencies other than dollars is a provocative move aimed at washington if iran switches to the non dollar terms for its oil payments there could be a new oriel price that would be denominated in euro yan or even the yuan a rupee india is already in talks with iran over pricing their oil in rupees and they said even worse gold absolutely so if there are multiple exchanges of multiple prices for these commodities then the monopoly position enjoyed by the us dollar shattered and with that come all the benefits of that and all of the inflation that america exported to countries like china comes roaring back so those i pods and i

pads suddenly instead of band a thousand bucks you're paying three thousand bucks the article also then goes on to mention the e.u. ban on iranian oil imports which comes into force on july first could hit europe harder than it does iran so think of this as you see mass protests the burning of athens the mass protests in lisbon remember one hundred thousand people were out in the streets of lisbon the same time the greeks were out there is mass protest and austerity and suffering an economic hardship all across europe and now they're going to find that as iran currently supplies five hundred thousand barrels of oil per day to the e.u. there is a potential oil price spike in the offing should iran preemptively stop the flow of oil which is it has threatened to do you know what let me go back to my original question where is germany going with all of this in other words if that is true what you just said and you've got europe forced to take a position between the u.s.

israel and u.k. and iran which way will germany swing well carthage is the answer again curfew. must be destroyed now many romans went and fought all these punic wars they fought as valiant soldiers dedicating their patriotic fervor to rome their lands were stolen they paid the price so that carthage was destroyed they themselves were the victims this is part of carthage this is part of iran being destroyed must be wiped off the face of the earth forever standing up to the empire that they could control the straits of hormuz based on a paper currency that is being diluted and the best into oblivion sure but it's a great deal in the world to get that we all know it's a currency that's worth nothing imagine if you came up with this fabric of paper

here and i had to give you all my labor for that for just because you said it also still uses face on this piece of paper and is a movie going to trade on a premium to every other currency out there on the globe well this sort of a mentality of course trickles down even critics of safety net increasingly depend on it so this is an article that got a lot of attention from the new york times last weekend and a source with key goal brinson owns a logo apparel shop deals and jewelry on the side and referees youth soccer games he makes thirty nine thousand dollars a year and wants you to know that he does not need any help from the federal government and he says too many americans live on handouts and that's why he backs the tea party and he dedicates money and time to getting the tea party in there to take down the government yet this year as in each of the past three years mr goldman sachs is counting on a payment of several thousand dollars from the federal government a subsidy for working families called the earned income tax credit he has signed up

his three school age children to eat free breakfast and lunch at a federal expense and medicare paid for his mother eighty eight to have hip surgery twice so. they would chronicle over and over that in fact much of the social safety net in america was in order to keep americans from extreme absolute poverty but actually more and more of that pie is actually going to the middle class who are making thirty nine forty fifty thousand dollars and they're getting more and more of that pie and actually the poor the very poor are getting less and less of it and it is that middle class that they highlight so you know well that they're the ones that are most against federal handouts to other people and the federal government does such a good job at it these people aren't even aware of it it's invisible to them they're pulled completely subsidized by the government and they have the nuts to come on and say well i don't want any federal subsidy i don't need it i'm a john wayne what do i need meanwhile an entire life is subsidized by the

government because a stone so well he doesn't even know what a frickin baby got these diapers changed now i want to end on one little quote here from socrates because we're doing all these history lessons of going back in history to carthage and of course after those on fire was in the news and it really fits in with these themes that we've been talking about today at his trial when socrates was asked to propose his own punishment he suggested a wage paid by the government and free dinners for the rest of his life instead of the death sentence which he received well as a philosopher i think it's interesting that even two and a half thousand years ago this was still an issue of who gets the free lunch and government salary on one hand people want it but as socrates is perhaps suggesting it's also a punishment goldman sachs went around that would have created hemlock futures and forced him to buy into fifty trillion dollars worth of beyond collateralized

hemlock futures contracts and what have gone bankrupt and kill themselves anyway all right stacy ever thanks so much for being on the kaiser report q. manx don't go away much more coming away so stay right there. any match one split is bound. to burn for ever more eternal fire is on think about the possible future. do we old wants to see this on forever. the official. from the.

video. couldn't take three. three. three. three. three. three. video for your media project. tom.

welcome back to the kaiser report imax kaiser time now to go to new york and speak with chris whalen of tangent capital criswell and welcome to the kaiser report max all right chris well let's get into this question on everybody's mind the latest greek deal your thoughts well it's it's not so much a deal as buying time we're now going to try and convince all these investors to take a seventy percent loss and take these new pieces of paper in exchange for the old ones i don't know if this is going to be successful you know eventually we're going to have a new government in greece too and they may not to agree with the path that the technocrats are taking. at the moment so i think you have to view this is a step toward some kind of resolution but i don't think this is it highlights let's try to look at this you know higher up just look at the euro itself not sure if you have comments on this per se but i know your your colleague over there tangent

capital jim rickards is very constructive on the euro over the dollar do you have an opinion on this currency play well it's funny you are right jim rickards is is very bullish on on the your least constructive and so is my good friend david kotok wrote a book a couple years ago suggesting that people invest in europe i'm still waiting to hear what is going to bring all of these countries into full union both in a fiscal sense and the currency so we already have a currency union but we still have all these disparate countries and i'm not sure that they have really yet agreed to go all the way so if you're asking me do i think the euro is a good place to store value right now the answer would be no i don't think the euro is going to disintegrate i think the core countries germany france the benelux nations will probably stay together but the question is what do we do with the periphery even italy.