tonight on r t it's the two billion dollar blunder that proves in some ways that nothing is too big to fail risky trading practices take j.p. morgan chase to a new low so is it time to seriously look i'll look at breaking up the banks. and they're attacking your freedoms to prevent cyber attack the pentagon and defense contractors prying open the door to the internet and that's not all they're doing we'll tell you how and more importantly why this cyber crackdown is going to. and now we all know the race for the g.o.p. nomination in twenty twelve has been ugly candidates slinging mud rhetoric and anything else they can get their hands on when our supporters are duking it out for delegates literally so can romney and paul supporters unite for

a battle against president obama in the fall. it's monday may fourteenth at seven pm here in washington d.c. my name is christine you're watching our t.v. let's begin with a look at those big banks but one some have called it too big to fail but some now are saying are too big to regulate you probably are that shocking announcement last week that j.p. morgan chase had made some risky bets and lost big time two billion dollars in the process stocks plunged and investors now say this could just be the beginning with much much more money at risk over the weekend j.p. morgan c.e.o. jamie dimon was on meet the press and responded to questioning on this and about what should be done take a listen. but we had thought it legal risk compliance and we're best people look at all that we know we were sloppy we know we were stupid we know it was bad judgment

we don't know if any that's true yet of course regulators should look at something like this as their job so we are totally open kimono the regulators and they will come to their own conclusions but we intend to fix it learn from it and be a better company was done all right well in some ways what happened with j.p. morgan chase is exactly what so many have been warning about for months and even years that without increased regulation without those who gamble money away being held accountable it will continue as a message of activists with occupy wall street have been screaming from the rooftops and in many ways no one wanted to hear charlie mcgrath is founder of wide awake news dot com he's written about many of the problems with our system charlie we know what happened on the surface here some investors made some big gambles and lost but let's look a little more big picture how can something like this happen. well it's it's very simple how something like this can happen you know in the years leading up to the bailouts of two thousand and eight two thousand and nine you had five banks j.p.

morgan chase bank of america citi was part of goldman sachs they were about forty three percent of the economy that's a staggeringly huge number the e.f. five institutions represent forty three percent of the u.s. economy well here we sit in two thousand and twelve after a a frenzy of bailouts a frenzy of backstopping and a frenzy of rhetoric from our so-called representatives saying we're going to get these too big to fail institutions under control and as we sit here tonight christine this once forty three percent of the economy group upside the real gang of five is now six percent of the u.s. economy in two thousand and eleven over eight point five trillion dollars these companies these five institutions make up it's an absolute affront to any thinking american or any thinking person on this planet to think anything has been done to these too big to fail other than making them more systemic and more powerful and

truly the writers of legislation that govern not only them but our country and our financial future not exactly rocket science here i mean when you let these big bangs get bigger they're going to continue to make the examples of other people lenny especially when some of the people in charge you are making the mistakes are not being held accountable and i want to tell you i mean do you think that some people are going to finally say you know here we have a clear cut recent example this is evidence for why these big banks need to be broken up for them to swap that way no way if we if we didn't see this if we didn't see the canard of barney dodd frank if we didn't see the ramming down the throat of the fraudulent failure of these institutions in two thousand and eight two thousand and nine and continues to this very day if we didn't see that going to this point guess what we're not going to see it with a two billion dollar rounding error. and unfortunately that is a rounding error for these institutions you know j.p. morgan chase i believe at this point issues. food stamp debit cards in some thirty

states in this country they they don't have to worry about the two billion dollars don't make it up in the long run and the american people keep keep being spared the same propagandise left red team blue team garbage and it's unfortunate christine but it looks like we're just going to keep swallowing debate until we have the uber collapse a super collapse or make two thousand and eight look like a day in romper room and then they'll stand around and say you know what we were doing just fine we were doing just fine in the sovereign debt problem is what brought the world's financial system crashing down that way they can lead and lay the blame on the people of the world sauber in debt once it's the public's debt they can let this whole thing come apart and then blame the people of the world and then offer us a nice solution in the form of a global financial governance well i thought it was pretty interesting we played a small part of jamie diamond interview with david gregory and meet the press and he said which i was flatly surprised about he said maybe we should be regulated more one thing this though i mean this is the same c.e.o.

the same company that organized an entire you know army of lobbyists as soon as the new financial regulation laws passed that these lobbyist came to washington to make sure that there would be loopholes that there would be wiggle room for these companies to continue to self police to continue to do what they want so when jamie dimon is saying well maybe we should be regulated i mean if you're just saying that to appease the masses do you think he really means that you know i know i don't think you and matter of fact it's almost insulting watching him at least in two thousand and eight two thousand and nine when these fat cats when these guys who rig blew up our economy when they went to congress at least they had the deer in the headlight look now he's going on t.v. yeah we screwed up but you know we're going to get better we're going to get better and we're going to learn from this of course they're going to get better they can't fail there's a never ending supply of money for these people because they're writing. the legislation as you just mentioned they're sending millions upon millions of dollars worth of lobbyists to washington d.c. to give us regulation like dot frank you know where is glass steagall this is

a simple piece of legislation a few pages long it makes it real real simple jamie diamond you can't have an investment bank and it bank holding company you can't take people's deposits and risk them and lose them and then expect people to pay for this is the real solution but when we have been going on you know the so-called business mainstream talking about how they made a mistake it's an insult well and you're certainly not the only one to bring up the idea of hey i mean we need to revisit last eagle people have been writing about it at least perhaps it will bring it back into the discussion unfortunately that probably just for a couple day if. j.p. morgan in some ways being viewed here as the loser you know they lost two million dollars but who was actually losing out here you know i know that's a rhetorical question because if anybody knows that it's you the american people that you know would j.p. morgan even be in business right now if we didn't leverage our financial future to

rescue them this is a question every time they lose money and we have this. debt bomb explode across this planet and we find out there's a quadrillion dollars of notional value derivatives floating around the world that's going to choke this planet in debt the people like jamie diamond will sit there and say we're doing god's work we're doing the best we can do feel sorry for the people who are going to pay are the people who are paying now the fifty million people on food stamps the million who are close a year the people who are falling off the unemployment rolls after two years of the emergency unemployment benefits of people are becoming non-persons one point two million of them in the month of january coming off the participation rate we are the ones paying for this these people doing as god's work are standing before a camera and i think when that cameras are there slapping each other about on the back and say look we got away with yet another one and charlie you mentioned just a little bit ago that it's sort of a misnomer to think that this is a. a red problem versus a blue problem that that one of the two parties will come in and clean this up and save everyone but i do want to talk with you about how you think this could play

out in november i could be wrong but then perhaps we'll hear differently in the coming weeks or months but it seems to me both president obama and mitt romney agree that new regulations you know more stringent rules will hurt the banks and in turn hurt the people i'm wondering if you think that there's any reason to be optimistic that whoever you know that one of the two parties one of the two candidates could actually fix some of these most inherent problems. yes sure we could have the delegate race in this republican convention coming up and ron paul could become the nominee for president he would implement things such as glass be going take a look at the federal reserve and probably eventually abolish the federal reserve that would be a benefit for the people of this country the people of the planet for that matter but with the mainstream's choice you know the dyed in the wool red team and blue team candidates we have we know who supports them the financial interest institution that is sending millions upon millions of dollars to washington and

millions upon millions to their campaign coffers and in two thousand and eight the number one private contributor the number one corporate contributor to barack obama nine hundred thousand dollars was goldman sachs guess what same story for mitt romney in the year twenty eleven so it's a rigged game the american people the people of this planet are going to be the ones that lose so my optimism level for the two thousand and twelve election cycle the freak show will continue and will get a bond paid for candidate a representative for special interest in the city of london and on wall street and as you know charlie we've of course been shedding as much light on the wrong paul campaign as possible but he did announce today that he was going to stop campaigning in the states that haven't had yet had their primaries and of course still trying to amass those delegates it should be interesting but certainly an interesting story albeit not surprising about this j.p. morgan deal telegraph founder of wide awake news dot com in bozeman montana always good to have you. getting once again with

a look at some of the important changes in the works all in the name of cyber security we've been talking about some of these for months about partnerships that have been forming between the u.s. government and private companies to gain more access to what takes place on the web i want to put up a headline from the washington post today it says pentagon expands a cyber security exchange now essentially as many as as a thousand defense contractors might be volunteering and the volunteer to share some previously classified information with the pentagon to try to crack down on cyber threats according to the washington post this new relationship is being hailed as a milestone well to look more into this i was joined by aaron schwartz a founder and executive director of demand upon progress he gives us a breakdown of the situation there i mean unfortunately the details of this program ert extremely close here so it's a bit hard to understand what's going on but the government is trying to spin this as just defense contractors when as you mentioned there are groups like horizon

which most of us don't think of primarily as a defense contractor but what they've admitted so far is that they're sharing information about cyber security threats so there's a secret government web site that they all have access to where they can post about attacks that they've suffered that other big we the foreign cyber security the clips that they want to talk about but it's not clear whether that includes people's personal information or milk 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 craft contractors and some not i mean shouldn't shouldn't this be a major concern for the d.o.d.'s 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 hackers threat to the go after chiding tuckers instead to increase that with a spiral of us yet we certainly seem to be in a transitional time right now where some 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 and a 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 talk aaron about the bigger picture here in terms of what's going on. i mean 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 we're 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 to come to depend on and because you know they use words like pirates and cyber hackers and so on and people don't look too closely at the details of these bills but when you do there. what do 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 and 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 slate 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 help that 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 and those plans yeah unfortunately the senate bill has a greater problem the republican 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 is likely in the united states under vaguely defined conditions of national labor regency 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 use control of the entire internet it seems to me erin 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 a 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 seeing this happen. well actually there's a fantastic project called the keylock sunday sions started by a fellow that nicholas merrill who is the one i s t order who refused to comply to a patriot act read you know instead of complying with the government he went to the lawyer or even though they told it was illegal he talked to his lawyer and he fought it all the way to the supreme court and now he's you know he's raising money online to start a not for profit foundation that will provide that kind of that 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 and 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 i mean 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 that 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 back to this the spyware program this article in the washington post the fact that one thousand as many as one thousand 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 in asks for

a favor they're going to be in the car do it but i think we also have to look at 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 that they've been able to use cybersecurity 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 the 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 founder and executive director of demand progress well it's time to check in with our web team and see what they're working on our g. web producer angie blake is in the newsroom to tell us what he's got cooking all right and you're talking a they're pretty hard in that doing well thank you and what i say here we've got

the stories for you on here some stories i would love to hear first we have a legend member of the have to this collective anonymous has come out and made some pretty wild allegations about what the group is actually capable of saying that anonymous might be the most powerful organization in the world if you go to our t. dot com slash usa see what he had to say and speaking about stuff on the web bitcoins big cryptocurrency used online by different people look for different goods and services one of their servers for a trading service was hacked over the weekend thousands of thousands of dollars with these big coins went missing we'll show you what happened what we think happened what's going to happen and then from there whole bunch more stories you can follow us on our to dot com slash usa or twitter r t i. your score america one more though recently the house in the state of kansas has passed the legislation kind of mirrors a similar one that went through arizona earlier this year that has pretty dangerous

stuff if you're considering abortion in the state so go read what's happening in try to grasp your head around it because it's a lot of wild stuff today yeah i think a lot of people don't realize how much you know abortion rights legislation is in the works right now and we don't really hear about it in a lot of these cases and tell it it's all going to it's too late so we still have the senate to go over this bill but in the meantime the house did pass it in the same thing that we saw in arizona a few months ago and so even though there was a big uproar might not necessarily do anything but go read about it and do with it what you will right well hopefully people will argue repartees or injured like with a preview of what's trending today on our website kristie well a big announcement today from ron paul an ounce he would stop spending money on active campaigning but he hasn't given up fighting for delegates and we've already seen plenty of surprises at state republican conventions in terms of ron paul winning the majority of delegates in those states that had originally gone to romney or santorum and 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 is paid for. thank you very much. all right we've been saying this for a while folks that just because many people have called the race and put it to bed let's at least not forget about ron paul so i want to talk more about this with robin kerner publishing publisher of watching america robyn let's talk first about today's announcement is this simply ron paul not wanting to spend money he doesn't have or is he done. no i think he's just reconfirming that he's going to spend the money he does have wisely you know the strategy was never based on those things that he today say today said he's not going to be doing

so you know as a lot of ron paul supporters i'm not much concerned to be honest and we showed a video from over the weekend of rep mitt romney's son getting booed and i also want to play a part of a small local news story something that also happened over the weekend in oklahoma . here. the video you're watching is being recorded by a woman who said she was jetted in the bag. republican. ron paul supporters claim he was hit in the head by a seventy year old mitt romney supporter. after the altercation and officers diffused the situation. or rather what do you think i mean is this a preview for what we might expect in florida in august at the republican national convention i hope not because wrong calls for its. premised on the principle of non-aggression which i think is a kind of good principle to take anywhere in truth in terms of. you know it's but

there are going to be fireworks i think. you know there's this line about the revolution hasn't been televised it's going to be hard not to televise it in tampa so. i'm kind of quietly excited as to what we're going to see because the think it's possible the nation will see that the idea is that won't prevent resents a lot more important to a lot more people. might come to realize and we should say that our ron paul and his campaign have not condoned this this violence they've condemned it a lot of it the happening to ron paul supporters people here just want to see this thing wrapped up there's a lot of talk recently about the delegate strategy that ron paul has really you know said he intended to use all along and has been using still a whole lot of people surprised over the last couple weeks with some of those delegate victories at republican state conventions in places like maine and nevada

i know we're keeping our eyes on states like michigan and minnesota but i wonder i mean what do you expect to happen do you think he's going to still win the majority of delegates in some of these states. oh wimples going to win a few more states based on that account no doubt about it the question is what do they do about that big number of delegates in tampa and you know the big elephant in the room and one of the what his supporters that are going to have this platform what are they going to do with it i mean if there's some discussion right now whether any of the delegates really are bound but even if they are other people going to play ball or will they feel kind of mody justified based on what's happened to them through the campaign so perhaps just throw a spanner in the works and vote their consciences you know who knows what could happen well will be way watching because it should be interesting about iraq and i'm wondering you know after the republican national convention in august there's still a little more than a two month two months to go before the actual election i mean what are ron paul

supporters do assuming romney becomes the nominee during those two months i mean do they take their enthusiasm their energy to romney. i can't see it and nobody that i've spoken to. under the umbrella of the blue republican movement which is kind of what i meant was that liberals and independents are swing behind when none of them are going to do it. and and i also think there are even plenty of what you might call true conservative social conservatives more of the santorum mold that are going to have a hard time with for me this is a big question that the g.o.p. is going to have to answer for itself in terms of if they ate in a this huge chunk of the base that you might call the liberty republicans what then happens you know what challenge then for loney. it's a tough decision i think for the party mainstream and that's what i was going to ask you i mean as certainly we're not going to see mitt romney decide that he's a pacifist and wants to end all the wars there are certain principles that ron paul

holds dear that are just we're not going to see either candidate sort of embrace them but what can mitt romney say you know to to really get more support to get some of those ron paul supporters to come his way. you know it probably there will just be a few just to strictly you know he's going to get some but it's very hard to imagine that he can say anything consistent with anything he said before which is kind of i want to give more to flip. but you know anything that's a system that would attract the liberty movement so. you know i think the only thing that i think can really make a difference would be if you could actually sit down in a room with one pool and convince role in pool that he's had some road to damascus experience and basically going to get one who is indoors in that way i mean i trust ron paul enough i think is have enough sufficient authenticity and integrity that if he said rome the has said that he's reversed positions on a b. and c. i believe him i'm supporting him please you do it too then i would seriously

consider that but i've you know i just can't imagine a hypothetical world in which that happens i will say and a lot of the ron paul supporters that we talked to they do say this is a revolution it's not about one alexion they want to take robin i mean some of the ideas that ron paul has been you know espousing for years now have become more and more mainstream they become things that you know regular run of the mill republicans have embraced i'm wondering what do you think will sort of translate and seep into future policy in the very near future that sort of was a ron paul original idea. oh yes so many things i mean one of the reasons what you're implying here is going to happen is that the liberty republicans have taken over so many of the. so many of the states and counties with respect to the g.o.p. that county and state platforms of being me but. in the spirit of unit one for republican it's more kind of libertarian with

a more libertarian sensibility so there will be changes that will ready coming down the pike that kind of unstoppable obviously the monetary system is now mainstream it's now possible to get on a stage at a republican convention and espouse the benefits of peace you know can you imagine that just four years ago the momentum is is really quite incredible i mean civil rights i mean you know we there were some serious voices for civil rights which is maybe you know the most troubling here in the u.s. politics today both from the left and what you know we've always had the n.d.a. come come down. we didn't think about do anything worse in the patriot act but you know here we have the n.d.a. i mean there is you know executive orders left right and center since but they were just discussing earlier in the show these are big issues and people like rand paul and others and even some people on the left i mean because in it you now doesn't have the platform he did but there are no names of political spectrum that are

going to take advantage of the mainstreaming of liberty oriented issues which are definitely the most important political issues in the us today certainly the idea of a smaller government by. by so many people especially thing what's going on really quick i just need you to make a prediction do you do the majority of ron paul supporters in november vote for obama or for romney and for gary johnson or do they write in ron paul. oh i think there's going to be an extraordinary number of write ins for a long pull the difficulty is that they won't all be counted everywhere there will not there will not be a block vote it won't be romney there will be a good number he will go back to obama there's there's a sense certain sense that another four years of obama gets a liberty republican in quicken then putting romney in i'll not be something like that decision to now robin corner publisher of watching america thanks for coming on the chat and i get to be with you thank you and for us here that's going to do about for more on the stories we cover.