well today on r t if sharing is caring and the pentagon cares about you an awful lot or about your online data anyway it's tightening its grip around your cyber freedoms and bringing in the big guns all for the sake of national security we'll tell you how and more importantly why this cyber crackdown is gaining steam. and banking on disaster if you thought big banks were done making big gambles you bet wrong it seems the more things change the more they stay the same specially when it comes to risking your money. plus the race for the republican nomination is getting red white and bruised as supporters for mitt romney start a battle royale with ron paul a fiction otto's throwing around both votes and up punches we'll tell you how these

voters are duking it out for delegates. it is monday may fourteenth four pm in washington d.c. my name is christine you're watching our teeth. well let's begin with a look at some important changes in the works all in the name of cyber security now we've been talking about some of these for months and about some partnerships that have been forming between the u.s. government and private companies to gain more access to one takes place on the web here's a headline in the washington post today the pentagon expands a cyber security exchange essentially as many as a thousand defense contractors may volunteer to share some previously classified information with the pentagon to try to crack down on cyber threats and according to the washington post this new relationship is being hailed as a milestone milestone is one way to look at it but we want to talk about some of

the other aspects of what's going on here for that i'm joined by aaron schwartz a founder and executive director of demand progress there and we're talking about companies like verizon wireless companies most people i know use for their telephone and internet services they've already participated in a pilot program they plan to continue cooperating break down for me exactly what's going on here i mean unfortunately the details of this program are to extremely close here so it's a bit hard to understand what's going on but the government is trying to spin this is just defense contractors when as you mentioned there are groups like arising which most of us don't think of primarily as a defense contractor the what they've admitted so far is that they're sharing information about cyber security so there's a secret government web site that they will have access to where they can post about attacks that they've suffered and other you know they go to find cyber security clips that they want to talk about but it's not clear whether that is people's personal information or look and i know those involved with the program as

you say they say it's because you know they give examples hackers in countries like china and they're trying to get into some of these networks some belonging to defense crocked contractors and some not i mean shouldn't shouldn't this be a major concern for the d.o.d. if in fact people in china are trying to hack into defense contractors. yeah i mean i think there's no problem making people's computers more secure everybody's computers should be made more secure and i think that should be an important government priority what's worrying about this stuff is instead of making computers more secure they've decided to go at the problem by sharing people's personal information and that's what's frightening about the bills under consideration is that it's using this you know chinese hacker threat to not go after chinese hackers but instead to increase the way they spy on all of us yet we certainly seem to be in a transitional time right now where some of the internet freedoms that we've been used to since the internet kind of came to be used by average people and now things are changing and we just saw legislation passed late last month in the u.s.

house of representatives that included in it a plan to give businesses who share information legal immunity when they choose to share that data i know similar but different legislation is in process in the senate right now there are details being wrangled over but it's more than just the details that talk aaron about the bigger picture here in terms of what's going on. i mean i think the biggest thing is when you talk to representatives their view is that the internet is this kind of wild wild west that people out there are just out of control doing whatever they want and there's no way the government can stop them and so they're behind a whole bunch of these bills which they feel like will kind of rein in the internet but unfortunately you know the way they do that is by removing fundamental civil liberties that most internet users have come to depend on and because you know they use words like pirates and cyber hackers and so on people don't look too closely at the details of these bills but when you do there. what did you think i mean this article that was in the washington post and we're starting to see much more mainstream publications and outlets pick up on these stories and the legislation

that's being discussed on the hill here. but it's being painted a enter just a really interesting way again as a milestone as a great thing that these private ventures are joining in with the government and becoming partners. yeah i mean you know it's clear that the people are just kind of repeating a press release that they got from the pentagon and some defense contractors but it is as you say you know very heartening that they are even covering this story this kind of story would be the sort of thing that was buried except for the fact that the sopa fight has raised issues of internet freedom to this incredible level of prominence so that people are paying attention they're keeping on their toes and you know we're going to make sure this stuff doesn't happen well i know president obama has already said he would veto legislation if it passed in the form that it has passed in you know the republican led house giving these businesses immunity but what about you know what we're seeing now sort of being put together and

developed in the senate what do you see as sort of holes in those plans yeah unfortunately the senate bill so has the greater problems there the republican led version in the house was terrible but the senate bill isn't that much better you know it still has significant portions of what's been known as sort of an internet kill switch that allows the government to nationalize internet companies and take control over the internet basically in the united states under its they going to find conditions that national or so you know this is just not the kind of thing that's reasonable for the government to be passing with under a national emergency declared by the president they can just seized control of the entire internet and things to me and that this would be a really good time for a company with that with a bunch of investors to come forward and start you know an internet company or telephone an internet company that promised people it wouldn't work with a government that promised people that you know your privacy would be protected why are we not thing that happen. well actually there is a fantastic project called the calix foundation started by

a fellow named nicholas merrill who is the one i who refused to comply to a patriot act read it well you know instead of complying with the government he went to the lawyer for even though they told it was illegal to talk to his lawyer and he fought it all the way to the supreme court and then he was you know he's raising money alone to start a not for profit foundation that will provide kind of internet access to everyone in america it just seems to me maybe i've just been in washington too long but it seems to me that those kind of companies though i would have a hard time surviving because as you say they point to legislation like the patriot act they point to different laws that have already been passed and ones that are in the works as reasons why in fact you can't have companies that are independent and protect people's privacy. and there's no question that there's a struggle going on and they are trying to make that kind of behavior illegal through this and other laws that require people to keep records require people to turn stuff over to the government whenever possible and that's why it's important we pay attention to these things and we keep fighting because if we just let the

you know the defense to par and the government contractors decide all the laws it's going to be terrible and erin just bring it sort of back to this this pilot program this article in the washington post the fact that one thousand as many as one thousand you know different companies defense contractors have said they will voluntarily participate what's in it for them. you know it's not clear and that's a little bit frightening i think i think part of it presumably is the fact that defense contractors depend on the defense department for their business and so you know naturally if the government comes to them asks for a favor they're going to be in color to do it but i think we also have to look at it going the other way you know what is it that the government is giving these private companies and you know one of the things we've seen with the cybersecurity act in the house is that they've been able to use cyber security as a framework to get around existing privacy laws to do the kind of things that would normally be prohibited but could be very lucrative and profitable for these companies and so there's a question of whether this is you know yet another government back door and then

rich and private corporations sometimes it just all depends on how you look at it while some are celebrating this relationship other people like you rightfully so are expressing skepticism about these too close for comfort relationships between private entities between private businesses and the government aaron swartz a founder and executive director of demand progress thanks for having me let's turn now to a follow up on a story we told you about last week about new evidence that our country's biggest banks are getting bigger a shocking announcement last week that j.p. morgan chase had made some risky bets and lost two billion dollars stocks plunged and investors say now this could just be the beginning with much much more money at risk here's j.p. morgan c.e.o. jamie dimon responding to questioning on this his interview aired on meet the press over the weekend that we've had voided legal risk compliance and the best people

look at all that we know we were sloppy we know we were stupid we know there was bad judgment we don't know of any that's true yet of course regulation look at something like that that's their job so we are totally open kimono regulators and they will come their own conclusions but we intend to fix it learn from it and be a better company was done. all right what will the greater impact of this incident be i want to bring in max senior analyst and green cross capital max let's start off with some of these remarks we just heard made by jamie dimon from his ex has appearance on meet the press he says regulars regulators should look at this but wasn't a team of lobbyist for j.p. morgan chase who you know rushed to washington as soon as the new financial regulatory is a lot of path to make sure they would have wiggle room now he's saying oh they should've taken a look at this before what's going on here well i think we see jamie dimon who's been sort of market appointed largely self appointed as a spokesman for why we don't need as much regulation as some voice of called for

because the best banks j.p. morgan chase and the best managerial teams jamie diamond's can do business in a way that kind of nice the shepherds of their organization and those dependent on it away from the biggest most dangerous risks and pitfalls and the problem we're seeing here is having this meter two billion dollar crisis on the eve of discussion about the volcker rule come out of this best practices institution with this sort of self-appointed spokesperson for best practices jamie diamond calls into question whether it is possible to have a self regulatory framework that works and you have the sort of poster boy for best conduct being the party that needs to be rapped on the knuckles even in his own admission on the really thursday conference call what started all this to investors and then through saturday and sunday on the excerpt that you played for us a moment ago i guess i'm curious i mean what's the point of having congress pass these laws if there are always going to be loophole loopholes to get around them. part of that is the cat and mouse game between industries and industry regulators

industry regulators do tend to find themselves in a situation where they're kind of winning the last war so they're putting out a group of regulations designed to prevent the last financial crisis not so much the next one that's still of some value because obviously you don't want more or larger financial crises and the bigger and bigger issue here though maybe two things it may be that this is the political season and that jamie dimon has historically been something of a democrat even if their relationship is somewhat rocky lately both parties both the democrats and the republicans need to raise money on wall street together romney and obama are going to need to raise about one point five billion dollars and having some folks who are allied to democratic party like mr diving was in many cases historically is important especially when mitt romney is kind of of the wall street belt and will probably do very well raising money there so this may have political implications as well as the regulatory implications because we start debating rules that cover just this kind of trade this week yeah i was going to ask you i mean how you think you you expected this incident to play out in the election

because a lot of people have said president obama throughout his entire time in the white house has been just a little too close to wall street that romney though of course also good friends with wall three so i mean a how do you think i mean you think this will change the discussion elevate some of the discussions about this but do you think it has any role in shaping the election and the issues. yeah i think this we're going to see this discussed during the election cycle by the democrats and the republicans i think we're also going to see this effect the rule making process for how to deal with what how much banks are allowed to make bets on their own books as opposed to just make bets for clients of more traditional undertaking on the other hand yeah i do think this is going to have a huge political implication because we do have one candidate who has a much closer historical enterprise ties with wall street type operating procedures through bain capital and another candidate who needs and wants and has historically gotten some money from wall street but even the other maybe bigger issue here is

that the obama administration has rhetorical taken a pretty hard stance on wall street and finance the republican party a little bit less so lately because of their general version to greater regulation on the other hand every poll and every social indication we get continues to show us that the general public remains very angry and very unhappy with leading financial firms and incidents like this only make that anger more self justified and more aggressive they certainly don't do anything to push back on the thesis that large financial institutions are not doing god's work here in america and people are angry and some of those messages in those things that they're angry about really took shape in the occupy wall street and then you're it based in new york where one of the biggest movements as we've heard occupy activists talking about this kind of thing for months now mourning that what we could happen and some of the consequences of too big to fail banks you know in general but i'm wondering back and you think somewhat optimistic about this but you really think that people

will wake up after this incident or i mean i mean will they say this is out of control or will business as usual just continue. well i think incidents like this pick a scab but the general public which remains pretty unhappy with the financial industry we have a lot of embattled legislators remember it's not just the presidential election that we have in november it's also many senate seats and all those house seats and so people will respond to their constituencies i think symbolically this will be a difficult issue for the financial space only because j.p. morgan chase and jamie diamond were kind of held up as the best practices exception to the rule that financial supermarkets take undue risk with public monies and of course having the poster child for best practices be the latest culprit especially to the tune of two billion dollars especially during the heating up political season and right before we discuss regulations will push in that direction on the other hand i doubt this incident will change anyone's opinion whatever way they felt about increasing regulation or about the financial sector writ large and

people are going to continue to fight for what in what serves their interests the best. but then this announcement last friday there has of course been a whole lot of you know monday morning quarterbacking going on about what could have prevented this what should have prevented this you know when dodd frank of stopped it should there be more regulation and you know your history max i mean is there anything that should have been in place to prevent this. i'm not sure if it's of a difficult thing to do here whenever you get large global financial institution with literally trillions of dollars in assets under management every time a bank makes a loan it's also a bet they have to bet that you'll pay in full on time in a currency that's viable acceptable valuable to them and they have to do things to make guesses and bets about future outcomes that's sort of the nature of the beast when it comes to banking as an industry once you get large international and somewhat risky bets being made in the form of writing loans to consumers to governments and to enterprises there's going to be an effort afoot to try to lay

off risk or hedge it or buy products that will vary inversely with the product risk you're taking when you write a loan the question is where do you where do you draw the line between being careful to be careful with your capital and investor capital and where do you begin to speculate in possible future outcomes on your own behalf we don't really know where to draw the line it's a very hotly debated subject jamie diamond was a major voice against harsher regulation in that area and depending on what happens here what we ultimately learn exactly took place which we have not yet in this trade it's going to affect that debate and it's also going to affect the public's and the legislators patience and willingness to allow a large space for a banker him put into making that decision about where to draw that difficult and somewhat subjective line in the sand and i think an important alice is there somebody who understands all this next federal senior analyst at green kraft capital. so big announcement from ron paul today he announced he would stop

spending money on active campaigning but he has not given up fighting for delegates we've already seen plenty of surprises at state republican conventions in terms of ron paul winning the majority of delegates in states that originally went to romney or santorum while this past weekend we also saw violence break out between romney and paul supporters not to mention one of mitt romney's sons josh romney getting booed off the stage at the arizona republican party convention take a look. make sure that it's is paid for the. machine thank you very much that was mitt romney's third out of five sons had to cut his speech short after all the booing now we've been taking a look at ron paul for a while you know saying just because people have called this race have put it to bed it's not quite time to forget about ron paul and i want to talk about this more today with wayne allen root of two thousand and eight libertarian vice presidential

nominee he also wrote the book the conscious of the liver's libertarian empowering the citizen revolution with god guns gold and. well let's talk first about today's announcement is this simply ron paul not wanting to spend the money he didn't have or is it something else. i know it's over i mean i was slated for the you know sticker seen that mitt romney will be the g.o.p. nominee but you know i'm a big fan of ron paul i love the guy and i'm a big fan of anybody who fights relentlessly to the very end the last go on and he outlasted rick santorum he outlasted you get rich rick perry herman cain you name it you've been titled from this effect so i really love the guy i think he's great but there probably is a republican nominee and now this is austan it makes it one hundred percent clear ron paul is fighting for more than a nomination it's a long term battle to instill libertarian values on american culture on the economy and most importantly the republican party and i think he's done a great job of that and the battle will go on way and it sounds to me like the

establishment republican party has gotten to your ears thing in their lines we spoke to some other sort of grassroots ron paul supporters who say hey we still have you know the state conventions in minnesota and michigan to watch what's going on here. well this i think this is all about something very different with it and ron paul knows he's not winning it you probably would have said that to me if you had backed out and that's the fact that it's pretty obvious and right it is mitt romney's nomination but ron paul's looking for other things number one to launch your message number two his supporters are trying to fifty states take over in the future of the republican party it's a long term battle they're good for and i think that's great and number three party power at the convention that's what this is about will mitt romney have a prominent speech in prime time to be able ron paul a prominent speech in primetime will ron paul have a role in a romney administration or does he choose to go third party that it's pretty clear at this point he's not going third party so if that's gates will rand paul have

a big role in the republican party moving forward and could ron paul stand a nomination and announce that by mitt romney that he will get the position position of sick sheep or treasury secretary may be a long shot to some people but to me it would sure be a great thing in a and a fresh way to look at politics i think ron paul would make a great pick she and a great treasury secretary so to get his supporters and why behind romney my guess is that he's trying to keep the pressure and keep up the army power while it is interesting too when you talk about getting his supporters in the line because certainly they were anything but over the weekend we had video earlier of mitt romney's son getting booed off the stage i am going to play part of a small local news story this is something that happened over the weekend in oklahoma. right here.

in the video you're watching is being recorded by a woman who said she was scared to get in the bag for the elite. of the republican convention is ron paul supporters there he was hit in the head by a seventy year old mitt romney supporter and. pretty altercation as officers defeaters the situation all right when i you know we're seeing people throwing punches and i you know we've always known that ron paul supporters are energetic but what do you think i mean is what we saw over the weekend is a preview for what we might expect in florida in august you know i don't think you'll be a lot of tension in florida it's been decided it will be romney and i think ron paul will get a nice roll this convention i would recommend to get raphael over jury not a republican but if i was in the g.o.p. i recommend to the rugby that he have grace ron paul great speaking role and possibly put him in a very poor position like the fed chief or some sort of major position in the romney administration of romney so when he's ahead of this vote in the polls i

think romney has one fewer crissy than the fear is my own limits your party's nominee gary johnson as our presidential nominee it suits your governor of new mexico with the single those libertarian voting record in the country with the exception of of dr also i think that he has a lot to lose mitt romney if he doesn't embrace a gradient that ron paul used to get it could very well why they're going to gary johnson and i think that would be very very careful and for war that he don't take for granted he doesn't take for granted the fact that libertarians have other choices in this election gary johnson by the way a great candidate with if you study his record in mexico christine the single most fiscally conservative governor in modern political history oh we will get we've had gary johnson on the show a number of times we've spoken to hand rail. interesting guy certainly but talk about i mean you talk about some of these libertarian voting records libertarian values what do you think looking taking a look back the last eight months to

a year i think that it's fair to say that some of ron paul's you know ideals have really become a lot more mainstream what do you think wayne has been some of the most important things that he's really brought forward and brought forth in terms of discussion and future policy. well certainly the fair is the biggest what i think the fed has had a lot of is just a lot of negativity in the american economy if you look at the number one rule of the fed christine is to protect the value of the dollar and since it was instituted in i believe it was nine hundred thirteen the value of tolerance down by ninety five percent if the number one goal boosts you should is to project the value that's down by ninety five percent what we defend for so number one run cold because what you guys the whole world screaming in the wilderness about for so many years no one knew what it was sucking about turned out it was exactly right he's a guy that it's really about student loans turned out it was exactly right that's a nightmare to armageddon about to befall the american economy over

a trillion dollars in student loan debt a lot of it's about to fall he was the guy screaming in the wilderness about our private loans and the housing debacle and he was right about that i think he's right about the gold standard we should get rid of the fed and have a gold standard and he's right about government spending and all that debt will eventually turn into a cataclysmic event in europe and eventually the united states look what was disclosed in the last week most people don't pay attention christine europe is going under we there have been a lot of. one other thing let me stop you really quickly another thing that ron paul has been screaming about for a long time and that the majority of americans do seem to agree with is the role of the u.s. government the role of the u.s. in wars in other countries most of this country at least at this point in twenty twelve seem to be done with the idea of past wars they want to round up and of getting involved in future wars this is something that ron paul has made you know his position on this has been loud and clear and but for some reason that is

something that the republican party itself the establishment republican party has a really hard time wrapping their hands around i mean despite the fact that the veterans people who have served this country have overwhelmingly given their financial support to ron paul a little bit about this just juxtaposition about what's been. happening well i'd say i'm probably the best example you could ever have on this t.v. show because i was a traditional republican in my entire life and i was very pro-war and i've come a long way i used to think ron paul was completely off base on this topic and now i'm not one hundred percent ron paul i'm not a believer in you know who are a lot of us at this but like ron paul i'm a believer in we should have major cuts all across the board including the defense budget the pentagon budget we should ratchet down spending on foreign aid all around the world wayne when change your mind well i think we're bankrupt what chased by my does i'm certainly not an act of this mentality of a pro-american capitalist of nature so i don't think wars are necessary i think

sometimes you have to fight wars but christine i don't know what we're doing in afghanistan and what we've lost our focus we should be there i don't know what we're doing in iraq and much are we ever were doing a rat in the end treasure and bodies and lives has been wasted for what appears to me to be nothing but the average americans gain nothing so i started to see the folly of fighting wars around the world just so we did spend more money on defense contractors i think ron has pulled me very far in his direction and he's owed a debt of gratitude by the american people and by and by all the families of the soldiers i think he's opened their eyes maybe you know always take for granted america is always right governments always right whenever the military says always right so ride thank you certainly and certainly tough though i know for a lot of conservative republicans traditional like you said you used to be and this is one issue that was really tough for them to grapple with appreciate having you on the show today when allan ridge two thousand and eight libertarian vice presidential nominee. don't forget to take

a look at gary johnson never forget gary right that's going to press for now but for more on the stories we cover and go to our team dot com flash usa or you tube dot com slash our team america. to what extent when i would call them paid mercenaries how much are they going to be at your defense to protect your administration none your successors none none you're saying the mercenaries like blackwater will not play a major role absolutely on this kind of tradition this is one of the issues over which we had immense turn shinde but they will be here they will be knocked as far as the afghan government's goes in no way no mercenary no way no way.

wealthy british style moves on. us not on the tide of. markets why not come to. find out what's really happening to the global economy with mike's concert for a no holds barred look at the global financial headlines tune into cars a report on our.