is nsa, how can we trust them? i think you can trust nsa under the current administration. you could trust nsa just in general. there, you get me in trouble. but people are nervous because of the wireless program. and you can't blame them for that. you know, you can't have a program that was probably illegal run for years and then say, oh, we fixed it, trust us. that kind of thing really hurts, so we're inheriting a political environment where trust in the government has been damaged. >> host: james lewis, has the growth in the wireless industry contributed more to the lack of security? >> guest: it has because when you get a wireless router, and you can do this at home if you want, the pass word is pass word, and the user name is admin. so i can drive around. i do this -- well, i shouldn't -- it's easy to do. you can drive around neighborhoods with your laptop or if you have a wireless device and look for open networks. now, most people are beginning to figure out at a minimum i need to secure my network with wire

wrote a letter to the nsa saying i'm concn about this waantless spying. the nsa responded to yith a tter and i know -- i printed it out. actually have it becau it's funny. so much was redacted, released absolutely nothing. dear congresswoman, racted, redact, redact -- >> sincereours. exactly. was there someing in that letter that, and i know 's redacted, so yan't say publal. was there something the letter that made you feel like, i objected privately i should not object publicly? >> you c't. you can't. >> you can, becae of the content at you have been briefed on, but isn't there way toay'm a senior member of the house intelligenc commtee. i believe that ware doing something we ought not bdoing? >> you cnot do that publicly. that's something tt i simply have to change in terms of, because yourands are pretty much tied. >> you think theules suld be changed in terms whamembers -- >> who you go to? can you go to the chief juste of the supreme court? these are issues, mi you, u can't en talk to your staff about. i have a securitadviser, but you can't talk -- y

nsa and how can we trust them? i think we can trust nsa and the current administration. you can trust and a say in general, but people are nervous because of the warrentless program. and you can't blame them for that. you can't have a program that was probably illegal, run for years and then say we fixed it, trust us. that kind of-- kurds so we are inheriting a political informant were trusting the government has been damage. >> host: james lewis has the growth in the wireless industry contributed more to the lack of security? >> guest: it has because when you get a wireless router you can do this at home if you want, the password is the password and user name is it meant. that is probably true for all systems so i-- it is easy to do. you can drive around neighborhoods with their laptop or if you have a wireless device and look for open networks. most people are beginning to figure it out. at a minimum, i need to secure my network with wireless encryption. >> host: that means a password? >> guest: at a minimum a pa

these attacks were designed to overwhelm websites at places like the white house, the pentagon, the nsa and the state and homeland security departments. the attacks have had minimal affect. the secret service says its computers were slowed down, not knocked out. >>> overseas next, president obama is in l'aquila, italy, which was devastated by an earthquake earlier this year. it is the sight of the g-8 summit. high on the agenda is global change and the danger posed by nuclear danger in north korea and iran. jake tapper is there tonight. >> reporter: with italian prime minister berlusconi as his guide, president obama visited the l'aquila earthquake zone today. to help revitalize the region ere more than 50,000 residents are still homeless, berlusconi moved the g-8 summit here. this evening, the g-8 leaders would not support tougher sanctions against iran for its post-election violence nor sanctions against iran and north korea for their nuclear weapons programs. instead, they issued statements. >> it's very important for the world community to speak to countries like iran and north kore

i think you can trust nsa under the current administration, and trust them just in general. people are nervous, and you cannot blame them for that. you cannot have a program that was probably illegally run for years and then say we have fixed it, trust us. we are inheriting a political environment where trust in government has been damaged. >> james lewis, has the growth in the wireless industry contributed more to the lack of security? >> it has, because when you get a wireless router, and you can do this at home if you want, the password is password and user name is adman. that is probably true for all systems. -- the user name is admin. you can drive around neighborhoods with your laptop or a wireless device and look for open networks. most people are beginning to figure out that at a minimum they need to secure their network with wireless encryption. the problem is that any signal that travels through the air can be captured. if i can capture the signal, i can probably break the encryption. as you go up the food chain, can i do it? no, i cannot do it. can a cyber crimina

and the nsa output prices, down 11% on the year. the consensus was for that to be mean was 12.2% on the year, so slightly better than expected, and the weakest rate since april 20201. james shugg is with us. what do you make of that? >> it's not real surprising. the sector is not going to be generating inflationary pressure for a long, long, long time to come and the ppi data is entire consistent with that. there's so much spare capacity in uk manufacturing and indeed in global manufacturing at the moment that the bank of england will give these numbers a cursory grand and move on to bigger issues. >> yeah. well, the big issue for the bank is they decided not to continue for the moment with quantitative easing. they said it has been sort of a pause. what happens next? it takes us to sort of the august forecast and people don't know whether this is a pause or a stop. >> well, they've spent $112 billion of their -- to spend during the month of july. then you get to the motorcycles meeting when they'll rework there growth and inflation

they said it would you want to go there when you're writing a book about papermaking, well of the nsa has this huge enormous unbelievable paper building plant. this is pulp and they gave me a back of the processed highly classified and, it is still moist and they gave me this little medal of the national security agency. that was my little memento but this is pulled, all of this highly classified documents which wants pulled like this are declassified in they do i don't know how many hundreds of pounds a day of this, but then when it is completed like this is phillip to wire hauser which in turn makes pizza boxes and bathroom tissue i am told us so you never know what kind of a product can accurately are in your library and you have told me that these books are all double shelved so my question is, how do you know, double shells these there are books behind but how do know what is behind the books in the front? >> this library has been here for 20 years and i don't know if it is particularly related have been somebody once asked charles lamb who had and many books in his library and t

cyber attack started on the fourth of july, it targeted the white house, the defense apartment, the nsa, the board of homeland security, and several others, including the new york stock exchange. defense officials tell us that they believe this attack originated from north korea. can you not just to see kim jong mills sitting over there, hacking into the white house? pentagon officials say that they have largely deflected the halk attack. -- hack attack. joining me now, chief security officer for a security consulting firm. who did it? >> that is what they are trying to find out right now. going back to digital forensics, trying to find out what the source was, who is responsible. it could take a couple of weeks. shepherd out the attack came out of north korea, they think. -- shepard: the attack came out of north korea, they think. can you picture it? >> [laughter] kind of an oxymoron, but they think that it might have come out of north korea from south korea, they do not know where, exactly. it could have been anywhere around the world. that is the thing about cyber crime, you do not h

e nsa respded to you with a letter and iw -- printed it out. i actually have it becauset's funny. was redacted,eleased absolute thing. >> dear congresoman, redacted, reda, redact -- >> sincery yours. exactly. was there something inhat letter that, can i say it's redacted? wathere something in the letter that made you feellike, i objectedrivately. ihould not object publicly? >> you can't. you can't. >> you cat, because of the content what youve been briefed on, but isn't there way to say i'm a senior member of the house intelligee committee. believe that are doing something weht not be doing >> you cannot do that publicly. that'somethi that i simply have to change in terms of, beuse your hands are pretty much ed >> you think the rules shou be changed in terms what members -- >> who you go to? can you go to thehief justice of the supreme court? these e ises, mind you, you can't even talk to yo sff about. i have aecurity adviser, but you can't talk -- you can't talk anybo. that just isn't ght. at isn't right, because it gis the cardso the ministration, and then if you say anytng abou

ouwith "e news hour from jim lehr" he will be hosting a one-hour for at the federal reserve bank of nsas city with the federal reserve chairman ben bernanke. >> that's transparency. >> that's trendous transparency that weave never seen before perhaps, buthould we see this sort of transpency in market like this and in an economy like this? >> i thi n actually. i don't think it's his jobo be out there swering -- >> what he going to have to answer is the question? >> the stimulus . everyone wants to know iwe need a second stimulus plan. >>nderstanding the fed's actions and hothey transact is a eat idea. i think it's exactly whahe he was going to do when h came into office and he's do a good job. to get out there in ont of the mob and the pih forks is not wh he's supposed to do. he's not supposed to awer tions from those people. >> i agree with that entirely. he's not the message he's not the messageeliver, he's the policy after, i think. >> is this anothereason to stay on e sidelines until this thing is over? who knows what wilbe asked and answered and how it will be interpreted. >> i think

i think,o me, that is a ndamental issue that will change the nature of the debate about the nsa warrantlessetapping program. >> change in what sense? is it the suestion here that bush was back lling to justify invasion of privacy, or was it that they ju got it all wrong? change it what way? >> what they are saying, what is no solid conclusivero there that the n wireless -- warrantleswiretapping program was responsible for any major coterterrorism successes. the entire justification by th bu administration for averting the fisa laws and going with the waantless wiretapping program s that they said it had been saving lives and thwting attacks. that is a fundamental ise that has been at the het of this debate ever since it becam public. >> it is because of your repoing th we know about the warrantless wiretappg program egin with. the new repo here revealing that the president also authorized secret surveillance activitieseyond wiretapping d without details. the report simply cautioned the collection activits since 9/11 were unprecedented and retenon and use of the infmaon should be carefullmon

on sunday, he willit down with jim lehrer and answer quesons from a nsas city audience in an hour-long forum. >> suarez: for me on the emergintensions between legislators and the feder reserve chairman we tn to martin baily, senior felloof economic stues at the brookin institution. bailwas chairman of the counc of economic advisers during the inton administration. and republican cgressman scott garrett of new jsey. he sits on the hse banking committewhere chairman bernanke testifi yesterday and joinus from capitol hill. and representative garrett, you're the autor of a letter to president obamaith a long list of bartisan cosignaties asking the president not to allow the fed any more powers til it's investated. what would youant a probeo lok at? >> well, that letter was, as you indicate, bipartisan letter. republins and demoats got together and the issue o course ase not so much out of the committee b the oversight committ on the hi that bgan investigate som of the asrted undue pressure aeged by t fed, vis-a-vis the banki industry anthe merrill nch and the bank of americ situatn, and i'

plus there's amortgage crisis which prompted a protest at the nsas city fed last fall.rging help for hard- homeowners. in short, when it comes to the gat recession, unftunately, everything's pretty much upto date in the tenth district the deral reserve. >> ifill: with thatn mind we aked a nonpartisan organization >> ifill: with that mind, we asked non-partisan organization,ansas city consensus, to helus identify area residents witquestions for chrman bernanke. th were pre-interviewed by newshour staff, anselected by us. our staff alsoelped jim select questions submied by our line audience. he now is part one of our forum, "bernke on the record" with jim lehrer, athe federal reserve bank in kansas cy. >> lehrer: mr. cirman, welcomesir. >> thank you. lehrer: underlying many of the questions tha these folks have ar questions that are basic about the ederal reservet -- tself. for instan, i would like for gwenbailey to stand up. tell the chairman what u told ourroducer when she taked to you about your questions for the chairman. >> my ne is gwen bailey i'm a soci worker with

attacks were aimed at web sites for the white house, the pentagon, the nsa and homeland security departmentsnt said the attacks did not have much effect. secret service computers were slowed down but not knocked out. >> the senate homeland security committee is vowing to crack down after a shocking undercover operation. they're supposed to oversee security at thousands of federal buildings but undercover investigators had no problem smuggling bomb making materials past the guards. >> reporter: this demonstration is one example of the powerful explosives congressional investigators easily snuck into federal buildings across the country. video shows one investigator toting a bag full of bomb components, liquid explosives and a detonator. he place it is on an x-ray machine and then walks through a metal detector. investigators said guards were simply not paying attention to items on x-ray machines that should have caused great concern. >> the guards were not even looking at the screens that would show materials passing through. >> reporter: investigators went to ten federal buildings at undiscl

i have little riff on the nsa in the cia.ast year i went to fort meade, went to the national security agency. it took me four months to get clearance and approval to go in there. what in the world did you want to go to a national security agency for? writing a book about papermaking? the nsa has this enormous, unbelievable paper pulp and plant. this is pulp. they gave me a little bag of processed, highly-mag is still moist because the kmart of the end. we never have, we never will, national security agency, so i-- that was my little memento come up but this is pulled, all of this is highly classified documents, which once pulled like this are declassified, and they do, i don't know how many hundreds of pounds a day of this, but then when it's completed, they sell it to wire houses which in turn makes pizza boxes and bathroom tissue out of it i am told so you never know what kind of a product it is. >> here we are and what you have called your library. >> for want of a more descriptive term. >> you told me that these books are

treasury, federal trade commission, the nsa, national security administration, homeland security wasen targeted and also they weren't all government. you see there nasdaq, "the washington post", and yahoo finance also targeted. now, these are called denial of service attacks. they're not uncommon. what happens is a virus deluges the site with so much traffic it clogs it up and takes it offline so no one else can use it. now, there has been some tracing of these internet addresses from the virus to north korea. but officials are quick to point out that doesn't necessarily mean it comes from there or that the government was involved in any way. there is also some indication maybe they came from china. the bottom line is it is very difficult to figure out where they came from and whether it would be government involved or individual hackers. they're already warning the public it's not something they may be able to trace ultimately. the thing that i think the takeaway message here especially for homeland security is that cyber security is a pressing issue, something that needs to be addr

been the fusioning and that is what we have worked to do to break down all the walls around cia, dia, nsa, nga, special, special ops, conventional, coalition, iraqi and so fort and we have worked hard to do that, as well as proliferation of unmanned aerial vehicles and other platforms that have made such a difference. he wad to overhaul detainee operations. we have 26,000 or so detainees at the height of this, and those were breeding grounds for the terrorist class of 2007, until we started to do counterinsurgency operations inside the wire and outside, and we identified the irreconcilables, the hard core and separated them from the rest of the population so they couldn't be training terrorists to be released. you have to get at the roots of discontent, the problems that might lead somebody to be willing to sign on with an extremist group to begin with. so you have to get to education, jobs, services, religious, and we learned loot of lessons in that regard. all of the this -- then you even take a host of other areas with other countries, source countries, syria borders, and then the whol