Hey friends and happy 4th of July tonight. We are celebrating at Epcot They are bringing back the special firework tag the heartbeat of America They're also going to be turning spaceship earth to the stars and stripes and I cannot wait to check that out We're gonna ride some rides and eat some special 4th of July food and just have a beautiful Epcot kind of day Anyhoo, let's go do this It is extremely hot out today, but it's a beautiful 4th of July It is 93 degrees out but because of the humidity it feels like 102 degrees and I am feeling it We're gonna be meeting up with a bunch of friends later on and celebrating all around world showcase And I am so excited like it is so awesome to be able to come to Epcot on 4th of July yesterday We celebrated at Magic Kingdom because they were doing their 4th of July fireworks the 3rd and the 4th so tonight we get to see Epcot's 4th of July fireworks, and I'm excited. I Think our first stop of the evening is gonna be here at Connections cafe They have a special 4th of July Leige waffle and I love that they're doing seasonal waffles now I can't wait to see if they're gonna do something for Halloween and Christmas. I Feel like I dressed appropriately for the 4th of July I'll give you guys a little fit check. I got the Captain America Roosevelt shirt on I got the America fedora on and I have a lot of fedoras that I don't wear often This is one of them I literally just have a closet full that I just kind of like to collect but also I got on the perfect footwear for 4th of July I feel like Normally I always wear sneakers to the parks, but for some reason I felt like wearing these bad boys out Got some crock action. This is perfect for 4th of July and maybe I can tan my feet a little bit. Look at that And I got some black shorts on I do have a matching Captain America Short set I should have wore that but I forgot and now let's go get that waffle. Let's go get that waffle Here is a look at the 4th of July Leige waffle and it looks really good a brioche dough with the pearl sugar 399 it's got a little hidden Mickey on it. Well, it's not so hidden, but I'm excited. It looks really fun and festive Wow take a look at all this amazing things that are happening back there It's like we've got a chocolate fondue right there, and then you can see them making the 4th of July waffles Look, you can see the little Mickey's on the wax paper right there. That is so interesting I didn't even know they make that chocolate in house. They make the chocolate things right here A lot of people always head over to the connections eatery to get the waffle because that's where they sell the Leige waffle over there But the special seasonal waffles are here at the connections cafe the Starbucks basically Holy moly we might have to come back for that waffle I've never seen the line for this Starbucks be this long. Take a look at this. Holy moly It is a busy busy day at 4th of July. Oh, I can't even believe this is all switchbacks, too That is insane like Wow, and this is the lobby of people that are actually waiting to get their stuff. Yeah, I think we're gonna have to come back Mostly all of the locals know to come to Epcot on the 4th of July because they can see the 4th of July fireworks on the 3rd So that's what a lot of people have done and it was super hard to get a reservation for Epcot today I actually had to go to Hollywood Studios first touch in and then park cop. So we're gonna be looking at a very busy day It's also the very last day for the flower and garden festival today So this is the last day to look at all the beautiful topiaries and also to grab any of the flower and garden food and Food and wine should be starting in in just a couple of days. I Think we're gonna make our way right on over to America We're going through America Fabitio and I was thinking maybe we should take the friendship boat Like we'll actually board the boat here and I'll take us over to Morocco And then we have to just walk right there a very fancy little boat ride The reason I want to head right on over to America is because if they're doing any special photo opportunities or anything like that It's gonna be over in America. So I want to get that done because you know, whenever you come out for these holidays You want to get that the special things done first We might be able to sit outside maybe I Love coming on the boat actually one time I watched the fireworks from here, and it was so amazing best fireworks show ever Goodbye, we'll never forget you That's two Titanic references, let me know if you caught any of them And we made it we made it to Morocco Now that we're over in America I tried rushing over here because I wanted to catch the last Voices of Liberty show, but it looks like I missed it I missed the Voices of Liberty I'm a little upset about it because that's like the best thing to do for 4th of July and now M80 is on the stage and that's a really cool band. It's a mixture of 80s that covers and Kind of just adds to the 4th of July vibes Look at this doesn't it just scream 4th of July We got the beat we got the beat we got the beat They have a special 4th of July photo opportunity right here outside of the American adventure So I definitely have to stop and get my photo taken They actually have two different 4th of July photo opportunities They have this one that says July 4th with Pluto holding an American flag and then they have the other one over here That's just a regular 4th of July Mickey. I think it's right here. I can show you guys Let's see. Oh, yeah, right there Holy moly M80s is playing some amazing music like I'm loving this We might have to come back later and catch their later shows. This is pretty awesome I think we should head on in the regal eagle barbecue get something to eat and Kind of just hang out in the American for a little bit Here at the regal eagle smoke house, they have barbecue from all around the country Kansas City smoked chicken Memphis pork ribs Texas beef brisket and North Carolina smoked pork butt. So we're gonna get ourselves some good Americana food. I Also love the theming of this restaurant in here, too. I'll show you I mean it's Muppet base But not too much Muppet just a little bit of Muppet and of course Sam Eagle Look at it in here like Doesn't this just say 4th of July? I mean, this is it I mean, this is the best restaurant to come for on the 4th of July And just like that here we are look at this. I love it I am so excited and I have to say it is really awesome to get the kids meal because if you get the kids meal You get two smaller portions and the smaller portions don't look that small like that is insane And you get two sides with them, too So I ended up getting the watermelon salad the baked beans with burnt adds french fries And then I had to get the banana pudding because this right here Might be my all-time favorite dessert in Epcot. It is that good the banana pudding here is beyond like Omega It is that amazing and it's like the perfect 4th of July meal. So we're gonna dive in little water Malone. I Am so excited to dive into the pork butt here I'm actually gonna grab a little bit just so I can try a little sample a little sample and I got some barbecue sauce over here Just a dab just a dab. Oh That is good But I feel like you don't need the barbecue sauce And especially if you have the baked beans with the burnt ends add that to your cold pork. That's the way to do it It looks like they give you about one two two bones on the ribs for the kids meal And the only thing I just keep on thinking about is that banana pudding like it is so amazing But you know, I'm gonna grab a little watermelon little watermelon first. I Love watermelon look at this, but it's like as a side It's like not even a slice of watermelon when you cut it up. You know what I mean?  I've had all of this before. Oh, it's three bones. They give you three bones. I thought it was only two I've had all of this before and regal eagle is like one of the best quick services because like, you know It's something different than the traditional burgers and hot dogs and stuff But let me know what you guys think about the barbecue There we go We're gonna rip them apart here They're actually Won't come apart. Look it. I'm like trying to pull on the ribs here. Oh, there we go took a little string, but I got it I mean, they're pretty good. They're okay ribs, but it's not like the best ribs in the world I really do love the pork though and the watermelon Those are my favorite things so far I and I already know that the banana pudding is gonna be my favorite thing out of everything because that's just sensational sensational Enough with the meats. It's time for the banana pudding Let me know if you've ever had this banana pudding because you know what I'm talking about when I say it's amazing Look it. It's got them all the way down here, too. I'm gonna try to get that bottom cookie. Oh Don't ever sleep on the banana pudding Yeah 100% best dessert in Epcot in my opinion. You let me know but for me, this is it Now that we got a pretty decent 4th of July meal in us I want to keep moving around world showcase, but I noticed like this little gazebo or kind of like 4th of July area over here And I'm not too sure what it is Like I don't even know what they use it for but I wanted to take a quick peek see It's actually right over here Behind Regal Eagle. I don't even know what this is for. She's randomly here and like sometimes they have character Palooza back here So I wonder if they had some special meet and greets or if they play it on having some special meet and greets because this is really This is really nice. Very pretty back here Seriously it is completely off the beaten path. I don't know I don't even understand it Before we leave the American Pavilion, I do want to grab a moonshine sour now If you guys have never had one of these drinks before this is the most popular drink in Epcot I had a chance to actually talk to the person that is in charge of food and beverage at Epcot And he told me that this is the most ordered alcoholic beverage here at Epcot and it is it's pretty good beverage It's a little on the sweeter side, but a lot of people love it And you can get it right here at the Regal Eagle smokehouse and it's $15 old smoky blackberry moonshine blood orange Blackberry and lemon Look at that fancy All right, everyone. We got the best-selling drink in Epcot the blackberry moonshine If you guys don't know I ran into my friends we got Kyle right here two days in a row Yeah, this is the way 4th of July celebrations and we got Joe Joe and Krista and we got some Moonshine sour. Yeah. Cheers. Happy 4th Now that we got a big group of friends I think we're gonna go and scout out a spot to watch the fireworks tonight's a pretty important night and I'm excited to see the heartbeat of America and like I said, it's a tag So it's on the end of harmonious. So regular show just added a little special 4th of July touch to it And this is the first time with the barges out there So I'm excited to see what they project on there and also I'm still like curious if they shoot the fireworks off Behind America because they used to do that in the past. So I guess we'll find out Look at this everyone's all camping out already and another hour and a half to the fireworks begin Yeah, we gotta find a spot look, there's the tripods. They're ready That should have been us. I should have been us. We should have been ready. We should have been prepared Oh my god. Oh, wow taping Epcot. Look at this Honestly, we're you're really having a hard time finding a good spot and there's like several hours before The fireworks show actually happens look down here People are holding up spots All right, it looks like we found a pretty decent spot You know, it's kind of my go-to spot usually whenever I know there's like a special fireworks show happening And it's not too crowded. So we're gonna hold up a spot for a little bit and just wait Here is our spot right behind the Rosen crown and you got a good spot like right here of you in the barges But also I think they're gonna be showing up the fireworks above America right there So you kind of want to have it this spot right here, and it would be perfect Another cheers for the 4th of July here. Cheers Oh, you got a boomerang Oh The fireworks are gonna start in just a couple of minutes and like I said before they're gonna do regular Hormonias first and then they're gonna go into the hard feet of America like they're gonna do the 4th of July fireworks And it is so amazing I'm gonna show just a little bit of harmonious just a little bit But I'm gonna put in the whole show of the 4th of July because I expected to be the biggest Fireworks display ever like it's gonna crush it like from what I hear because this is the first time No one has ever seen this show before like it's never been seen before and I'm excited I think it's time It's only harmonious and then the holiday tag comes on Of a far off place where a hero's welcome will be waiting for me That's firework right there keep it that's a souvenir That's a shell right yeah, I thought it was a witch it I'll take one right here. Thank you Look, I got a piece still I'm putting it in my pocket. I'm gonna keep it forever Those fireworks were amazing. Holy moly. I felt like my whole entire body Shaking like it was insane I don't even know if the video can do like justice, but it was Incredible like I'm still kind of shocked by it and wow I mean it's just so amazing and technically tonight is extra magic hours for deluxe resort gas So everything's still gonna be open till like 11 o'clock at night and you can do whatever you want to think you can go in Shopping go grab drinks or eat the only thing is is unless you're staying at a deluxe resort You can't ride rides so the night is still young technically And even though it's past nine o'clock and the park is officially closed like I said because of extra magic hours You can actually still come into Rosencrown grab a drink or you can get some fish and chips. It's really awesome.  I can't wait to show you guys I know look at that. It's I'm covered in ash on both of my arms I was standing in front of you I Probably took the brunch of the blow Yes, I protected you Now we're gonna start making our way back out to the front of the park and we're gonna try to catch this special Stars and stripes on Spaceship Earths. It looked amazing, but from where we were standing and waiting for the fireworks We couldn't see it. So hopefully they still have it going on I'm not too sure if you can see it from here, but it does look pretty good I'm gonna get a little bit closer. Maybe it'll stay but I want to at least show you for a second Seriously, that is actually really pretty. I wish they had like a show though Like I don't think they're doing like a special song or anything like that. I could sing As we're making our way out not only is the spaceship Earth all Representing and being patriotic, but even these lights down here too. Look, it's all red and white, but no blue But they definitely change it to reflect for the July Hey friend happy for the July like your Captain America shirt Now take a look at it from the front angle and it looks so good and you can see the stars on the top They're kind of like shining. I don't know if there's 50 of them I don't think they can fit all the stars and stripes on there It'd be pretty cool if they could but I don't think it's possible and I think it's just really beautiful. Oh Look at the fedora. I love it. Thank you Natalie. That's a beautiful. I think it looks fantastic Yeah, absolutely, let's do it And with that, I think we are gonna be calling it a night here. What a 4th of July like seriously it was so fun coming here hanging out at Epcot and Also being able to see that amazing fireworks show like I'm still kind of shocked from it Like I still I'm still like in awe because it just felt so crazy I felt it inside my chest like my whole body shook. It was phenomenal, but let me know What do you guys think if you watch my video from yesterday? I showed you magic came those fireworks and then tonight as Epcot's and I'm gonna have to say I'm team Epcot like That was way better than magic kingdom like it was pretty phenomenal, but overall such an amazing day So I hope you guys enjoyed the video. I enjoyed making it. We'll see you next time. Bye


that you are finding a way to decide what is unfair, whether you turn the light on or have clean drinking water flow through the taps, or have a safe school for the kids to go to. This is what Canadians don't understand. So this is the challenge that's before us. I join Chief Leon in saying that Canadians, we're going to keep reaching out to them. The Allies are continuing to jump on board as they understand, I think, an increasing numbers. And I think that effort has to continue, is making sure we educate the Canadian public about the realities. And there's some economic solutions that we have to really look to. The notion of the certainty that others so desperately thirst from you, somehow cheap, you've got to deliver to the rest of the world certainty. That's been the effort. That's been the focus in negotiations when the federal governments come to the table. They're trying to extract that sense of certainty. Well, we can offer certainty. That certainty for Canada is if our nations are prosperous, if our children are healthy, well educated, we've got clean drinking water, if our people are safe and secure in their homes. That's going to provide certainty to British Columbia and to Canada. And so I know the challenges are great, but by way of closing comments, I'll reflect back on those. I will be, Mr. Chair and Executive, happy to stay as well for further conversations. I am off to Whitehorse to a Habitat for Humanity build on reserve tomorrow. Habitat for Humanity, working with the First Nation to build homes. It's beginning to tell you that Canadians who work usually in third world countries are starting to recognize they need to clean up right here in our own backyard to take care of each other in our own backyard. So it's a long, long journey and it's frustrating at times, but it does feel like we're also making progress on this long journey and it's a privilege to be engaged in the fight with all of you.


A quick question. What's inflation? Inflation, I don't know, is a bad thing. Inflation is arising of prices. And prices keep going up. Everything is going up. How about recession? Recession? Lots of people out of work. The people stop buying stuff. Recession? A slap in the economy. One more. What's the Federal Reserve system? Federal Reserve system? That's something to do with the government. They're trying to control the amount of money that's out in the economy. They probably try to help stop inflation and stuff like that. That's exactly right. The Fed does lots of things. But its most important job is to try and keep the economy growing by fighting inflation. That means keeping prices stable. For example, say you buy a CD today for $14. Next year, the same CD costs $16. Maybe the group is more popular, or the metal in the disc is suddenly scarce. That's not uncommon. A single item can go up or down in price for many reasons. But what if the price of the CD jumped to $20 or $50? Not because of a change in supply or demand, but because all prices were going up. That's inflation. Now if your income is going up just as fast, it's no big deal. But that isn't usually the case. More than that, inflation makes business and personal decisions extremely difficult. Companies can't plan for the future. They don't build new factories. They don't hire new workers. The entire economy is distorted. There are a lot of different causes of inflation, but one of the most important is too much money. Here's what I mean. Pardon my reach. We gave this high school class some money to spend. $2.50 each. And something to bid on. Three dozen fresh bagels. 15, 15! That's getting 20. 25. 25, 25. Back there for 25. Guy in the blue. Another one. Their goal? To buy as many bagels as possible. 25, 30. He says she's hungry. 35, you've got it. All right. What about this one? 10 cents. She says 25. 35. 30 cents. 30 cents. She's got it. 50 cents. 50 cents. You got yourself a bagel. 50 cents. The average price of a bagel, 50 cents. Then we started over. But this time, each student had $5. Twice as much as before. Okay. What about this one? 50 cents. He says 80. 80. $1. The lady in front of the blue says $1. Yes, the lady with the boopy do. All right. One more. $1. A dollar 10. A dollar how much? $1. $1. $1. $1. $1. $1. $1. $1. $1. $1. $1. $1. $1. $1. $1. This time prices were twice as high. And as we kept increasing the money supply, the price of a bagel went out of sight. $5, $5. Whoa, look at her. She's got $5 here. Can you catch it? It's the old cliche. Too much money chasing the same amount of goods. There were the same number of bagels, but more money. So prices were higher. Because many people and companies are hurt badly by inflation, governments aim for stable prices. Think of all the transactions going on every day. All the people buying and selling things. That's the overall economy. You might picture it as kind of a vehicle going down the road. All those millions of transactions require money. If there's not enough money, the whole system, the economy, may jerk along too slowly. But with the right amount of money, things run smoothly and prices remain fairly stable. Okay, so how does the amount of money change? That's where the Federal Reserve System comes in. As the country's central bank, the Fed manages monetary policy, meaning it actually changes the size of the nation's money supply to meet a goal that sounds simple, a growing economy with stable prices. But it's not always easy to achieve. The best way to explain it is to look at how inflation works in the real world. Let's go back in time, way back to 1979. It's March 1979. Magic Johnson and Larry Bird meet in the finals of the NCAA basketball tournament. The latest fad? Pet rocks, which do absolutely nothing. Meanwhile, gas prices are climbing. So is the price of food and just about everything else. Everyone's talking about inflation. Even the comedians on Saturday Night Live. Inflation is our friend. For example, consider this. In the year 2000, if current trends continue, the average blue color annual wage in this country will be $568,000. But inflation is no joke. In one way or another, almost everyone is affected. I really hate it because you pay so much for so little. We've cut down on food. It's positively discouraging. This is NBC Nightly News. To most Americans, inflation is public enemy number one. Good evening. Prices in the United States during the first three months of 1979 went up at an annual rate of 13%. The question is how long will this go on? Inflation running out of control. The answer? Probably for years. There's nothing in sight to stop it. So while Magic Johnson was winning a national championship, Paul Volcker was worried about inflation. You cannot build economic growth. You cannot build prosperity. You can't build full employment on a currency that is inflating, a currency that people don't have some confidence in. In 1979, Volcker was appointed chairman of the Federal Reserve Board of Governors. The Fed tries to avoid inflation because it causes many problems. Businesses don't know where prices are headed and can't plan for the future. Individuals tend to spend their money faster before it loses even more value. And they tend to save less. The rate of saving in the U.S. is the lowest of any major country in the Western world because saving money is a losing proposition. In 1979, people are putting less money in the bank and are spending money on items like gold and jewelry, which tend to hold their value.  If you're going to build more factories, if you're going to buy some machines, you have to have some savings. But there's no incentive to save. If you see your savings growing up in smoke, so to speak, because prices are rising. What's the use of saving $10 this year if it's going to cost you $15 next year for what you didn't buy this year? So inflation harms the economy in general. And it harms individuals. Runaway inflation really produces people in poverty. Nancy Teeters was sworn in as a governor of the Federal Reserve Board just as inflation was picking up steam. I remember in that period of time, we bought a car, I guess, in 79. We hadn't bought one since sometime in the 60s. And it was real sticker shock. I mean, the same car was going to cost me like five times as much. It took me six months to get over it. One fear was that inflation could spiral into hyperinflation, as it had in Argentina when the government kept printing more and more currency. At one point, Argentina's inflation got so out of control that consumers rioted against rising prices. October, 1979, Mother Teresa is awarded the Nobel Peace Prize for her work with the poor. And the Federal Open Market Committee declares war against inflation. The FOMC includes the seven governors of the Federal Reserve Board and presidents of the 12 Federal Reserve banks around the country. The committee meets eight times a year to set goals for the nation's money supply. What they decide affects everyone in the country. In 1979, they had to do something. The alternative of not having done anything, we were pretty sure would be a severe depression. And we wanted to avoid that at all costs. Bob Black was president of the Federal Reserve Bank of Richmond. He and the rest of the FOMC knew there was only one way to get rid of inflation. The choice was to slow the growth in the money supply as a means of easing inflation and trying to set the basis for long-run economic growth. So what the Federal Reserve does fundamentally is control the money supply. And we finally reached the point where we said, look, we're just not going to permit an increase in money supply to support this inflation. That sounds easy. Just issue less money. But there's more to it. First off, money isn't just this green stuff. Paper currency and coins make up less than a third of all the money in circulation. Money also includes all the deposits we hold in checking accounts. These are simply electronic entries that exist on a bank's computer. But they're money just the same. Basically, anything you can spend, whether by writing a check or taking out your wallet, is defined as money. The Fed can adjust the money supply by injecting money into the system electronically or by withdrawing money from the economy. Think of it, the Federal Reserve has the ability to create money and make it disappear. What's most important is what happens as a result. Anytime the supply of money is altered, the effects are felt throughout the economy. If the money supply is growing rapidly, interest rates tend to go down, at least in the short run. It's a simple matter of supply and demand. When banks have more money available to lend, they don't charge as much interest. In turn, lower interest rates encourage consumers to borrow money. And when people have more money, they're usually willing to spend more for products. Prices tend to go up. That means inflation and all the problems that come with it. Now look at the other side of it. When there's too little money around, the scarcity of money means people will have to pay more to borrow it. Interest rates tend to go up. Because borrowing is more expensive, consumers are less likely to take out loans. In general, people have fewer dollars to buy things with and businesses can't raise their prices. Over time, inflation tends to slow down or stop altogether. That's the power of monetary policy. So when inflation gets out of hand, the Fed tries to slow the growth of the money supply. But as you saw, that can mean higher interest rates, at least in the short term, which brings us back to our story. It's December, 1980. There's the launching of a new cable channel. It's called Music Television, MTV. At the same time, the spaceship Voyager sends back pictures of the planet Saturn. Meanwhile, the U.S. economy is still in trouble. The prime lending rate went to 21.5% today. Before this week, it had never in American history been above 20. The new rate hurts. The auto industries and housing industries, especially most of their customers must borrow to buy. The Fed has restricted the growth of the money supply. And interest rates are rising rapidly. One effect, fewer people can afford to borrow money to buy a new car. You can't even buy an automobile. The interest rates are so high on everything. The price of the car is bad enough, but the interest rate is ridiculous. High interest rates also mean fewer people can buy new homes. As a result, the housing industry is in the pits. And throughout the country, people are blaming the Federal Reserve. Thirty years with my wife and three kids, and I got to worry about what folks are going to do. I like to resign parts to resign themselves. The Fed governors receive hundreds of two by fours in the mail, a symbol of protest from the construction industry. Meanwhile, there's a demonstration outside the Federal Reserve building in Washington. The Fed, and especially Chairman Paul Volcker, are under attack. There was a cement company that used to put ads, full page ads in the Wall Street Journal and skull and crossbones under my name or picture or whatever. And it kind of rankled a bit, but I do think there was a feeling in the country then that there was something of an emergency that had to be dealt with. It had to be dealt with by forceful action and a kind of common sense reaction that there'd be a little pain in the process. And that's what got you through. It's October, 1982. The space shuttle Columbia takes off for an important mission. It will release a satellite into permanent orbit. Back on Earth, the latest rage is called break dancing. Meanwhile, inflation and high interest rates have taken their toll on the economy. Companies are borrowing less and investing in fewer new plants, and existing plants are being shut down. Once you begin to decrease the rate of real growth, you begin to cross the rate unemployment rise. And you know that, and that's why it's a difficult decision to make. I mean, it's the sort of thing that wakes you up when you worry about it at three o'clock in the morning because real people are getting hurt. November, 1982. The American economy is in a recession. 12 million people are out of work. Almost half a million more Americans lost their jobs last month as unemployment rose four tenths of a percent up to 10.8. I've been off since June. Late off since June 21st. No money. You know, no work. Rising unemployment has one side effect because people have less money to spend. Businesses can't raise prices as quickly. One eventual result, lower inflation. The inflation numbers for 1983 came out and they were the lowest that they have been since 1971-72. 3.8 percent. That's down for more than 12 percent in 1980. July, 1984. The new fashion torn sweatshirts inspired by the movie Flash Dance. Meanwhile, Americans are going back to work and the unemployment rate is falling fast. In May the rate stood at seven and a half percent. Today the June rate was announced and it's a big drop to 7.1 percent. At the same time inflation seems under control. Prices which were going up at more than 13 percent a year are rising at 4 percent. The fight against inflation has apparently been won. Once we got the inflation rate down, we had the longest expansion in peacetime and recorded American history. So instead of kind of stumbling from one recession to another, I think it is true in a broad sense that we laid the basis for a long period of expansion. So when the Federal Reserve makes monetary policy, its decisions affect all of us in one way or another. Those decisions originate from all over the country. Remember the Federal Open Market Committee, the FOMC? It has the final word on monetary policy and it includes the presidents of the reserve banks located around the country. It's grassroots democracy in action because each of the presidents represents his or her district. Here's what I mean. For Bob McTeer, this is how the day begins with an hour of exercise to get ready for the work ahead. McTeer is president of the Federal Reserve Bank of Dallas. His district includes all of Texas and stretches east into Louisiana, west into New Mexico. It includes cities that reach to the sky, wide open spaces, and everything in between. This is home for nearly 20 million people. Their economic well-being is a priority of the Dallas Fed. We have our eyes open and our ears open and we use all the information that we can get in making monetary policy. That information comes partly from a staff of economic researchers. Well what about drilling activity in Texas? Drilling activity is down. They examine the local economy and report to Bob McTeer. Sure nice to have you here today. Thank you. But the president's job goes far beyond looking at numbers. It also requires getting out in the community, always listening to what people are saying about the regional economy. About two weeks ago we've stopped to pick up. All the economists in the world and all the statistics in the world are no substitute for hands-on communication. The rubber meets the road out there where people are buying McDonald's hamburgers and where people are getting their tires rotated and where people are going into the malls and we need we need to know firsthand how that's going. Each reserve bank is governed by a board of directors. The board has nine members including local bankers and business and community leaders. They meet once a month to discuss the local economy. That people are not spending, they're not hiring and Houston appears to be To sum it up, I would say that the El Paso area continues to be slightly optimistic. The Dallas board includes members like J.B. Cooper, a cattle rancher, investors C.C. Smith, and Milton Carroll, owner of a small business. Milton Carroll's company is called Instrument Products. It makes precision tools for the oil industry. The ups and downs of running a small business give Milton Carroll a unique perspective on the regional economy. This is the real deal. This is where it's at. I come here every day and I engage the economy in my business right here through talking to my suppliers and my customers and activity that's going on in my business and seeing other small businesses around me. The information that's that's printed in the paper about the economy etc etc that has less relevance to me than what's happening every day. At the monthly board meeting, Milton Carroll's concerns are passed directly to Bob McTeer. Those are just a couple things that in my judgment could affect future expansion. And from there to the Federal Open Market Committee in Washington, meaning he and other board members play a role in shaping some of the most important economic decisions in our country. There are 11 other Fed presidents who perform the same job as Bob McTeer. Their goals are identical. We're all working for general prosperity. We're all working for economic growth and we're all working for a stable price environment, a stable financial environment that is conducive to growth. So there are no different goals from one reserve district to another or from one region to another but there are different circumstances. Of course the Fed doesn't have absolute control of the nation's economy, just the monetary policy side of the equation. The President and Congress manage fiscal policy, decisions about taxing and governmental spending that also have major effects on economic performance. Still the Fed has a huge influence on matters like inflation and interest rates and that influence extends beyond the borders of the United States. The global economy is now so interconnected that decisions made in the U.S. are felt in every other country around the world. The Fed's methods have changed over time to take advantage of the latest technology in computers and electronics but when it comes to monetary policy its mission remains the same, to aim for stable prices, full employment and a growing economy. I'm Bobby Rivers, thanks for watching.


The twisting patterns created by the multiple spiral arms of NGC 2835 create the illusion of an eye. The stunning barred spiral galaxy, with a width just over half that of the Milky Way, is brilliantly featured in this Hubble image. Although it cannot be seen in this image, a supermassive black hole with a mass millions of times that of our sun is known to exist in the center of the galaxy. This galaxy was imaged as part of a large galaxy survey that's studying the connections between cold gas and young stars in a variety of galaxies in the local universe. Within 2835 this cold dense gas produces large numbers of young stars within large star formation regions. The bright blue areas show where new ultraviolet light is being emitted more strongly, indicating recent or ongoing star formation.


Hi. I'm Bruce. Are there any questions? I'm serious actually. Are there any questions? This could be a really short talk. I'm fine. How are you? Not what I expected. Yes. The question was about authentication in wireless networks with a lot of transient devices. But let's sort of generalize that. And let's talk about authentication in sort of any system where things are changing. And it could be a wireless network. It could be a wired network. What the medium is doesn't matter. We got a lot of issues here. There's a bunch of people that believe that we're going to solve internet security if we can just get attestation rights. If we can just know who people are, just authenticate people. I know people in this room I'm sure understand why that's nonsense. But it is a pretty pervasive thing. In general the more you can control the device, the better authentication you can do. So your cell phone will have better authentication than your computer just because the company that builds yourself on the network, they own the firmware they own a lot more of the network or your iPhone or any of the devices where there's a lot of control. You also think of, oh I don't know what else, your sling box or anything attached to your television, gaming console where the hardware and software is on the manufacturer's control, it's pretty hard to add anything. So it's going to be a lot harder to fake authentication. In general authentication is good. It tends to work in areas where the users want to authenticate. I actually like it when my cell phone authenticates the network because that's how I get phone calls. So I'm likely to be on the same side as the system that makes it work. I mean surely there will be people hacking it, but by and large people are going to want to make that work. I want to authenticate to my email server. I might not want to authenticate to some file sharing system. I might want to do that anonymously. So it's going to be a lot harder to build a system to make it work. In general, and I did a paper on this with Adam Schaustack about 10 years ago that when you start breaking up systems, when you have let's say a smart card in a reader and you give the card to the user, when you take the security system and hand pieces out to different parties, you tend to have a lot more problems because you can't necessarily trust the different parties. It's a lot easier for me to build a security system based on, I don't know a bank account number where you produce the number or a bank card that has a number. That number is just a point or two of my database. I mean I don't care if you hack it. I mean it's my database, you show me the number and I figure out how to make it work. If I give you a smart card with a chip where that chip is doing its own authentication, suddenly I'm handing you the device you could hack and it's a lot harder to build those security systems. So I don't have to answer the question. Those are some of the sorts of things that come to mind. Someone asked me about AES. Okay, so people heard the news. I talked about this yesterday at Black Hat. Yesterday, and I blogged about it yesterday, there was a new attack against AES. Actually a very major attack against AES. No reason to panic. You can stay. Because if you panic, you'll never get out of here for two hours. But this is actually a big piece of news. So let me give you two preludes and I'll talk about what happened yesterday. So AES is the new, since about 2000 I think, encryption standard. By NIST, there was a whole competition. I participated, I had two fish. And an algorithm called Ringdall 1, it came out of Belgium. And this became AES. AES is defined with three different key sizes, 128 bits, 192 bits, and 236 bits. The algorithm is the same for all key sizes except the number of rounds is different, 10, 12, and 14. And the key schedule is different because the keys are larger. So that's what we have. And pretty much everything out there nowadays has migrated from DES to AES. And so the question that you want to look at when you see an AES device is AES what? AES 128, 192, or 256, that just tells you the key length. So that's sort of AES background. Let me talk a little bit about something called a related key attack. Oh, cryptographers need to write papers. And one of the things we do is we sort of invent threat models that we use to evaluate the security. One of the threat models, I really was invented in the late 90s, and I'm sorry to say, I think I was the one who did it, is a way to look at algorithms, a way to attack algorithms based on related keys. So related keys are different keys that are related by some mathematical property. So a key and the key inverse, for example, would be a pair of related keys. And there's cryptanalysis against algorithms based on related keys. So you might be able to break an algorithm and I'm just making this up with 2 to the 80th work and 2 to the 20th related keys. So that means you need 2 to the 20th different keys where you don't know what they are but you know their mathematical relationships. And you know the plain text and the cyber text, sort of a standard model for breaking cryptosystems where you know everything except the key. But in a related key attack, you know the key relationship. They don't have a lot of application in the real world. I mean, it's hard to imagine a system where you can say to an oracle, this is the way we think of it, encrypt this. Thank you. Okay, now encrypt this with the key inverse. Thank you. Now, right. But it's certainly possible. There are some applications when you use a cipher as a hash function where you see some related key properties that they matter. But largely it's a theoretical attack. Okay? So what we had yesterday as a group of cryptographers, and I'm blanking on their names, it's on my blog, that having a new attack against AES, it breaks only AES 256. It's kind of interesting. And it only, it breaks 11 rounds of the 14. So this is an attack against 11 round AES 256. Against 10 rounds it's like 2 to the 40th and something like 200 related keys. Against 11 rounds it's 2 to the 70th so it's sort of just barely not feasible with a similar amount of related keys. This is a big deal. It's a big deal cryptographically because it's a huge improvement over anything we've seen before. It's actually a third in a series of papers that have come out in the last few months that are improving these related key attacks against AES 256. Alright, so what does this mean for us? Well, first of all it does mean luckily for us not to panic. Not to panic for several reasons, right? One, we're not breaking the full anything. We're still in reduced round. Two, we're not breaking AES 128 which I believed was the most common variant and I've been told otherwise that more people are actually using larger key variants. And three, it's a related key attack. And related key attacks tend not to be applicable in the real world. But still this is very startling. I mean what it means is the security margin we thought we had with AES we actually don't. There's an old autogen cryptography that attacks always get better, they never get worse. You know, it's trite but it's also kind of profound. Everything done always builds on something else. The attack that I wrote about yesterday built on a paper I co-wrote in 2000 where I broke seven rounds of AES 256 using related keys. And then it's been extended to 8, 9, 10 and now 11. Right? And attacks always get better, they never get worse. There's no reason to believe that this is the last word on the topic. You know, if you can go from 7 to 11 you probably can go from 11 to 14. How many years will it take? We don't know. Has anyone done it yet? Nobody's admitted to it. So what doesn't mean that people are reading AES traffic. I mean these attacks are theoretical. You know, even though they have practical complexity. But still, it's time for NIST to start thinking about how to modify the AES standard to get a little more security cushion. It's funny reading back at stuff I wrote in 2000 about Boudringdhal, I suggested doubling key lengths. And that's actually not a bad idea. So we'll see what happens. But this is actually really interesting news. So I wanted to tell you that. There's a hand right there. No, it's you. The question is about sort of security in general users. There's a paper I just saw that came out of Carnegie Mellon which proves something we already know that users ignore security warnings. It's a surprise. But actually, this is interesting. People have a really good sort of risk barometer. They have a good sense of what's risky. And the reason people, let's take sort of the one we all get, the SSL certificate out of date, or invalid. We all ignore that all the time. The reason we do is because we know it doesn't matter. The problem with security warnings is that they don't actually warn anything. They're generally CYA devices. It's not my fault. I gave them a warning. I'm the innocent programmer. He used one to click OK. It's not my fault. And we have a problem with that. In a sense if the programmer can't figure out what to do why does he think the user will be able to figure out what to do? The user's not smarter than the programmer. So one of the problems we have with just putting users on the front line of security is they're not equipped to be there. They don't have the expertise to understand that security warning you're putting up there. You're giving the user information he cannot process. Now sometimes we're stuck here. We don't know enough to design the security properly to make the decisions for the user. So we're kind of stuck sloughing the decision off on him. But it's not a good solution because the user can't make a good security decision. Largely because the warnings happen too frequently. So it's a cry wolf syndrome. I've yelled at you duck. You duck, right? Because that's a warning you take seriously. But if I started doing it all the time you'd kind of start ignoring me because nothing would happen. And we have that problem in so many areas of computer security that the bad stuff looks like the good stuff. And the program can't tell the user what decisions are chooses not to make a decision. And hand decision to the user who looks at it and says, you know, I clicked OK 80 billion times previously and nothing happened. So I'm going to click OK. Or I don't understand this.  Someone, I forget who did it has a parody of a dialogue box. There's a great website you want to go to but there might be problems.  I mean, what are you going to click on?  And that's the way users see those warnings. So what can we do? I mean, our job, I think is to figure out how to give users real warnings. SSLs to be expired or invalid is not a real warning. You're going to a known phishing site and it's not just a warning. I'm not letting you go there.  I'm not going to let you. And something like that. Or I really, really, really think you shouldn't do this because it's really bad. An actual warning and have it be correct. Those sorts of warnings people will listen to because they'll be real warnings. So us as security people, I think this is our problem. We can't assume the users can answer questions that we can't. We have to figure out how to answer the questions. I saw your hand first. What worries the most about cloud computing? Cloud computing I think is in some ways worrisome in some ways not. I mean, cloud computing is just a new name for an old thing. It reminds me of time sharing in the 60s. You know, in the 70s, in the 80s, I was using a punch tape and the computer was across the city. All these remote systems or client server from the 80s and 90s and now it's called cloud computing. Fundamentally what we're doing is we're doing the computing somewhere over there. And what should worry anybody in any of these sorts of systems is trust. Fundamentally you have to trust who's ever doing the computing for you in whatever paradigm you have. Cloud computing is Gmail. Cloud computing is Facebook. Cloud computing is sort of any of those systems where your stuff is on someone else's machine. Computing is all about trust. And whenever you boot your computer you have to trust the operating systems, the application software, the network you're on. It's a whole lot of trust built into computing. We don't really think of it that way but there is. And this is just another layer. So in some ways it's no worse. You know, you already trust Microsoft with your word processing files. Now you go on Google Docs. Now you trust Google with your word processing files. It's kind of the same thing. Both of them can have security flaws. Both of them can make mistakes. Both of them can screw up and compromise your data. The effects could be worse if you move more control, the more control you give up. This is the future of computing. I mean, don't think for a minute this isn't what everyone's going to be doing in a few years.  Everybody I know, not us, out in the real world, is moving to Gmail and all of those internet based email systems. I think that's nutty to give of that control but it's normal. People are moving to Google Google Calendar, Google Docs, all those things. Salesforce.com is taking over the systems for doing, which I thought would never work when it showed up, external filtering of email looking for malware. But that's normal. So this sort of thing is normal and it's going to be the future. The problem here is trust. You have to trust whoever the entity is. And that's hard. On the other hand, the companies that do this have to be trustworthy. So they're going to go out of their way to secure their systems more than most users will. Because their reputation is greater than any individual user. So I think there's promise there. So that's what I think about cloud computing. I mean, the worry is going to happen so fast that it won't be able to be secured properly. But it is happening and you can't stop it. It will be the holdouts. Let's go to a different part of the room. Way back there. Yes, you. No, don't turn around. Stand up. It's hard to tell. There's a lot going on right now, the administration on cyber security. There's a huge power struggle on who gets to control what. Often when I see stories in the media about these huge cyber risks, I always wonder which agency is leaking it for what reason. We don't know how it's shaking out. You know, Obama is going to appoint a cyber security head, which I think is a great idea. I like it if it has budgetary authority. But we don't know who it is yet. And we don't know what's going to be done. We know that the military is doing their own cyber security. That makes a lot of sense, right, both offensive and defensive for military purposes. That's perfectly reasonable. Who controls the civilian government network? We don't know. There's reasons why you want to centralize some things and decentralize other things. So it really remains to be seen. I don't know what's true yet. And I think we'll know a lot more with who's appointed. I actually would rather President Obama appoint someone more political to the head role. I have a technical person under him. I think one of the problems we've had for past cyber security czars is they've been too technical and not political enough. Because in the end this is about politics, it's not about tech. And you know, if you have a politician who listens to tech, you get a lot more done than you have a tech person that tries to listen to politics. Because politics just makes no sense. So we'll see. We don't know. Alright, someone asked me about SHA-3. That's another interesting topic we have. Okay, yes, I guess. Excellent. So after NIST had such success with AES, a couple of years ago they decided to have another competition to replace the SHA family of hash functions. And right now I don't know if people know we had SHA-0 and then SHA-1 with a minor modification. Now there's the SHA family. There's a SHA-2. And NIST wants to sort of scrap those and get something new for the next decade. A really good idea. I mean, these competitions are actually huge impetus for research. Lots and lots of teams all over the world submit algorithms and they break each other. We have a little problem though. NIST, which was the National Bureau of Standards back then in 1976, did a call for algorithms for a block cipher. They got one submission for DES. 1986 was nothing. 1996 they had a call for submissions for AES. They got 16. 2007 they did a call for submissions for a new hash function. They got 64. So you notice the little geometric progression we have here? Which means in like 2017 if they call for something they'll get 256 submissions. These are a lot of submissions. 64 was a huge number. So NIST got 64 submissions for a new hash dungeon. The calling at SHA-3, I think that's done. I think it's called the advanced hash standard. I mean, duh. But they're calling it SHA-3. And so 64 submitted I think 51 met the submission criteria and they came from all over the world. We had an initial conference on the SHA-3 competition in I think it was February in Belgium attached to the fast software encryption conference. And just I think last week, the week before NIST announced the 14 algorithms I think it's 14 that are going on to, that have been selected to go on to the next round. I mean you might think this is the great crypto demolition derby. We'll put all the algorithms in the ring, beat each other on the head and that's when left standing wins. It's not really that way but it sort of is. And so there are 14 algorithms left. My submission along with I think it's eight other people or seven other people. I forget if we're eight or nine total is skein. And we're one of the 14 going on. It's a good set of algorithms going on which interesting is these new results against Ringdoll, it's AES. A surprising number of submissions to the SHA-3 use AES. One of the reasons is the Intel chip, the next generation, it's good to have an AES instruction. It's going to have an AES round instruction. So you can do this a lot faster. So any number of hash algorithms took advantage of that and produced algorithms that use AES or parts of AES. So it's sort of unclear how these results will affect them. So right now there are 14 algorithms left. I think NIST is going to pick one by 2011 I think is the plan. And I think there'll be another narrowing from 14 to let's say five and then from five to one. This is great for cryptographers because what cryptographers need are targets. Remember cryptographers like to write papers? The best way to write a paper is by breaking something. Nobody wants to see your new design unless you have a trail of heads behind you. So the way to get cred is to break stuff. And there's now lots of targets out there. Of quality. They were easy to break targets. There are lots of hard to break targets. So that's what's going on in SHA world. Again there's no cause for panic. SHA 2 is fine. Both of these algorithms, SHA 2 and AES actually, are optimized for 32-bit words. So they're not as efficient on the modern CPUs. When NIST asked for SHA 3 candidates, they asked them to be optimized for 64-bit words. Which I think is a good idea. So that's what's going on in the SHA world. Yes. What's going on with TSA these days? U.S. is as good as mine. Kip Hawley resigned because it was a political appointment. So he resigned when the presidential transition happened. And Obama hasn't appointed anybody to replace him. So near as I can tell TSA is kind of in stasis. I'm sure there's an acting head. I don't even know who it is. It's someone that stays out of the news. I haven't seen anything different out of TSA in months. Except I think now you have to take your shoes off and not put them in the plastic bins. So that's what passes for policy change at TSA these days. But I haven't seen any news. Even their blog has gotten boring. When Kip Hawley was around there were some interesting things in there. So I think they're just sort of treading water, waiting for some political direction. As much as I hate to admit it I don't think that Obama can make any serious changes. I think politically he's not going to risk it because there's no upside. It's all downside. And this is a problem we have in society when security ratchets up. That it's very hard politically to say don't do that anymore. Because if something happens you are dead. I mean you've been blamed. So I think the TSA security measures are going to be with us for the foreseeable future. Just like we got the photo ID check requirements after I forget which plane. It was a plane that went down that it was thought it was a missile or thought it was some kind of bombing. But it turned out to be an accident. So the security measure wasn't needed. But it never went away. So I don't think things are changing anytime soon. I'm just not seeing a lot of movement out of there. I know this stuff brewing in other areas of national security. Not TSA. But making changes is hard. Doing the right thing is very hard in this case. Because doing the wrong thing is more politically expedient. It doesn't matter what part of you are from. That's true. So I'm not optimistic about near term changes. I'm going to take the hand way back there. Yes. No you. The PKI vulnerabilities are announced at Black Hat. So I can't comment on them. Is that the universal cert? Or is that something else? None of this surprised me. I've been in a series of stuff. I don't know what was announced. So I really can't comment on it. But in general, you get these kinds of things. Any security system is going to have problems. There isn't magically invulnerable to that sort of stuff. But I'm sorry. I've been busy enough for the past few days. Right there. This goes back to the first question. The notion that if we can just figure out who everybody is, we can magically make the internet secure. It's just not going to work. The more we rely on identity based security, the more fragile our systems become. Because it works very well until it fails. This is why I'm sort of against national ID card. I think we are served far better in a security way by having multiple IDs in our wallet with different rules for issuance, authentication, revocation, expiry, issued by different organizations. By the state, your passport, by your bank, by your library. We have many different cards in our wallets. And the notion that if you just sort of have one card, you're more secure, I think is wrong. Because forging a credential is a balance between how expensive it is to forge and how valuable it is once you forge it. So sort of paradoxically, by making a single credential harder to forge, you make it more likely to forge because that delta changes. So maybe instead of costing $100 to get a fake credential, it costs $1,000. But instead of being worth $1,000 or worth $10,000 or more when it's forged, it's now more likely to be forged. So I really like systems that minimize identity based security. I like systems that are secure regardless of the identity of who you're looking at. I mean, the airline security measures that's work have nothing to do with identity. The photo ID check, I think, adds no security. An example. So reducing anonymity doesn't help. God, I didn't know the Diane Reem show. That's just my radio host. I was on the show maybe about six months after our date, months after September 11th, or maybe it was more. Actually, I was debating a DHS person. It must have been over a year later. And the DHS, we're talking about ID cards, identity, identity checks. What it does is, when you're on an airplane, you want to know the identity of the person sitting next to you. And I said, well, no, you don't. I want to know if you're going to blow up the airplane.  And honestly, if he is going to blow up the airplane, I don't care who he is either. Right? Who he is is completely irrelevant. So I worry about a fetish for reducing anonymity. Because I think it makes for more fragile security. I mean, once you build a system that relies on identity, as it's linchpin for security, you just invite identity theft and various hacking by which you masquerade as somebody else. And so you make that the way people are going to break into things, and that's bad. So you're stuck building a backup system that provides security anyway. So I'd rather, when possible, I ditched the whole identity piece and work on, I don't care who sent the packet and why, I want to know what it's going to do. Right? Because if I don't like the packet, I'm going to dump it. And knowing who it is doesn't really help. Because even if it's a known person, it could still be a nasty packet because his system's been hacked. So I do worry. There is this fetish in the world today that identity is going to be how we're going to solve our security problems.  And that'd be easy. And we'd suddenly be safe. This is the way people think. It assumes that we have this master list of terrorists, which of course we don't, and we identify people properly, which of course we can't. And so it just doesn't work. I mean lots of places identity makes sense. I have an employee badge. I have an account on my corporate network. Those make a lot of sense. A lot of places identity makes no sense. I love identity based security at my bank. I mean that's good because I get my money and no one else does. I like that. But in a lot of places it doesn't make sense. And you're better off dumping it. But I think there's something we're going to have to fight. We're going to be losing the battle for anonymity on the net. There's a lot of pressure to reduce anonymity. And of course there's a lot of social value for anonymity. But I think this is going to be a hard battle and we're going to lose in the near term. And that's unfortunate. Oh let's go to this side. How about a way back there? I am doing fine. Alright, what's next? Alright you get two questions. Where do I buy my what? My hat. Actually it's a neat place. It's the Hat Center in New York. They've been in business about a hundred years. So it is a cool store. So I'll say that. No I have not talked to Obama. It's kind of neat. But I did an essay about a month ago. Which started with the rubric of if I had an elevator pitch to Obama and this is what I'd say about how to fix cyber security. This is what I'd say. For the life of me I can't remember what I wrote. I mean this is actually embarrassing. So I invite you all to read that and pretend I said it while I was standing here. You've heard my voice so you can probably do the cadence. I wrote it recently. It wasn't even a long time ago. I am the shadow of the man I used to be. Yes. Because we're coming on privacy in what context? On the ownership of your data. This is actually a real important trend. It's about privacy and the ownership of your data. We're now living in a world where we tend not to own our data. And I'll get calls from the press all the time about things people say. I can ask what can people do to protect their data on Facebook, on Gmail, on this service, on that service. And the answer is nothing. You're screwed. Fundamentally, most of our data isn't owned by us anymore. And this gets into the cloud computing. It's going to get worse. That my critical data is owned by somebody else. I mean identity theft. I used to say shred your trash. Nobody steals identity out of trash anymore. It's too annoying. Steal by hundreds of thousands. I'll have some database somewhere. And you, the user, the owner of that identity has no control of that database. So there's not a lot we can do. There's applications for our legal structure. A lot of our laws against illegal search and seizure involve our person, our cars, our homes, the stuff around us. But different laws apply for third data that's being held by third parties. So what Facebook might have to go through to release your data is different from what you might have to go to. To be forced to release your data. So the rules are changing. You asked about privacy. I think I actually also want to mention is the notion of privacy is changing a lot. I mean essentially the internet is the greatest generation gap since rock and roll. And you must believe it as that. I mean there's a huge difference between how, I'll use the terms, the elders use and perceive the internet. And the young people, the internet generation does. You see the gap by asking someone, do you use Twitter? And you either get why in the world would you ever do that or of course who doesn't. Those are the two basic answers. And that's the generation gap. So there's some research we're starting to see. Dana Boyd has written some great papers on young people how to use the internet. In terms of security there's a lot more focus on control that young people seem not to be less concerned about security but security is generally about control. They're certainly more open. Everybody under 18 has been dumped on Facebook. They know what it's like. And those things would never happen in a public forum to people who are older. People who are younger tend to put more stuff out there that their notions of privacy are a little bit different. And things are changing. The notion that the young people are more security savvy seems to be a complete nonsense. In general, the young people are extremely socially savvy about the internet. But not technically savvy. So I'm reading sort of interviews with people who are using the net. Sort of random teenagers. And they don't know the difference between data that's on their computer and on the internet. I mean it's the same thing. This data is out there. A lot of people are sort of platform independent. That they can use whatever device is handed to them. And they like that. It means everything they do is in the cloud somewhere. It's a really surprising thing I learned that it's not uncommon in high school that you give your password to your boyfriend or girlfriend. That it is a show of trust that you give them your password. Which means when you sort of break up with someone, change your password, must be done in the correct order. But that's an interesting social mechanism that never occurred to me. But that is not uncommon. And sort of I'll hear a lot of people, especially the older people, talking about how the young people don't understand privacy and are sort of doing it wrong and getting into trouble. When you think about generation gaps, think about rock and roll, what the elders would say about rock and roll. The death of marriage and women running amok and drugs and sex. They pretty much nailed it, right? But we're all okay. So as a general rule when you see a generation gap what all the horrors the elders talk about will come to pass. But the younger generation is right that it won't be the death of civilization. That it'll be okay. And we're seeing that. When you see a generation gap is a people fired for blogging. Or people when they apply for college, the admissions officers go look at lastnightsparty.com or Facebook and deny people either a job or college admission because of stuff on there. That's a generation gap. When we live in a world where the world leaders send lolcats to each other. That's when we know we've passed it. When the U.S. president actually twitters. And the tweets make sense. You've got politicians twittering. But you see they're doing it wrong. That's going to change. In any generation gap the younger generation wins because the older generation dies. So I think I have time for one or two last questions. So short questions would be preferable. You in the way back. Why don't you walk up and you'll ask the last question. I'll take another question from someone who's closer here that you two fight it out. It's Friday any squid news. So I get asked all the time about squid blogging. And if people follow my blog every Friday I post a squid post. And I'll get emails saying what is it about squid blogging? And I write back I do them on Friday. I get people who say hey do less squid blogging and more security. Like there's some conservation law. That every squid post I make means one less security post. I assure you that's not the case. And in fact posting about squid is the easiest part of my blogging day. That squid news turns. I mean I had no idea there was this much squid news out there. But yeah I do get odd reactions on doing squid blogging. So who's the last question. I did ask them to come and say not. Oh you did. Okay yes. It's an excellent question. Right. I'm going to repeat the question. From an engineering perspective terrorism is easy. Yet it doesn't happen a lot. What the hell's going on. Perfectly reasonable question. I assure you it you look through the past eight years. The administration officials will say that again and again and again. I wrote about bioterrorism a couple of weeks ago and there was a quote from the United States. I forget which cabinet officer has said it's so easy to poison the food supply I'm amazed nobody did it. A couple of things. One it's actually not that easy. It's easy from an engineering perspective but unlike an engineering project if you make a mistake you get arrested. This is actually sort of in general why there aren't many criminal masterminds. It's hard to practice. If you're a good guy you can practice and if you make a mistake you get better. If you're a bad guy you practice and make a mistake you go to jail for ten years. It's hard. It is harder. But yes anybody can.  But actually each step has some percentage of failure and add the percentages up and it's pretty rare. In some ways 9-11 terrorists got really really lucky.  And it's unfortunate we're sort of basing our national policy, international policy, based on really really lucky but we are. So one, so terrorist attacks are actually not as easy as they seem. Two, the hard part seems to be not the technical but the personal stuff. The people stuff. Getting the people, getting the position, getting them not to talk, getting them not to screw up that's a lot harder. Getting people willing to do it.  They're pretty rare despite their marketing campaign. Interesting. Different terrorist groups do have images. Al Qaeda seems like a really lousy terrorist group with a great image. The IRA was a pretty good terrorist group with a terrible image. Different groups have different ratios with that. It's a good question and those who are doing terrorism policy, I wish we'd think about that more. If it's so easy like we think, why has it not happened? So with that I'm going to end. I'm going to room 106. I'll get in. I can't promise any of you guys but I can promise some of you. I can't promise any of you in particular. So I'll go there, I'm happy to talk more, answer questions, sign books, chat. Anything today. So welcome to DEF CON. Have a great time and thanks for having me.


Hello thing for joining me. So miniature railway Britain has begun and today. We've just arrived at our first miniature railway and I found the next best thing in the car park to park next to So today we've come to the Foxfield miniature railway another Foxfield is probably more famous For the standard gauge light rail which runs off in that direction over there down to Foxfield colliery So I thought as soon as I'm here. I'll have a go on it's diesel day today But then I always tend to get their steam engine so I've not actually have one of the diesel So that for me is isn't a bad thing now miniature Starts over there runs up the car park Around the trees and back So it's what's known as a balloon miniature railway because it's like a piece of string with a balloon on the end So let's go over and have a look and hopefully we shall have a ride And then after that we'll do the standard gauge line. So although I said it's primarily about miniature rail If there's anything else at the site, then we will do that as well to show what else you can do During your day at a miniature railway. So it's not just about going to a miniature rail It's about going out and You know seeing what else there is to see so Because it's a gap in between trains So the track goes off up the hill over there Look at the nice little waiting So what I'm going to do now. I'm going to go and find out Get a ride on it and I shall film the ride from the train This is the waiting room and where you're by a ticket now I think because it's quite a gap in between trains on the main box of rail There's no one about so let's have a quick look in here and then I'll have to Go find someone to give me a ride But one thing I've noticed before it's worth pointing out. There's this poster here. It says Britain's great little railways So it's got obviously all the railways we intend to do and there are other Railways, you know that I will do it's some slightly out of date to look there There's Western Supermere Nature Railway, which unfortunately has closed. It's my old railway back in Scott So I won't go through all them now, but they do they produce little leaflet, which is really good So tells you these miniature railways, so you'll if you come to any of these ones You probably will find it's leaflets and do pick it up There's a few books or so and stuff come out here. This is This how they get their visiting locos on and off through this So this is the station So I will go and find someone In the meantime probably I will go over And have a look We'll do it now actually we'll go and have a look over there at some of the industrial locos there are to be seen So as we walk away from the miniature railway because there appears to be no one there at the moment We'll come back. It says it's open. So we will have a ride Let's go and have a look At the standard gauge rolling stock. There's quite a lot to be seen here I've got possibly one of the largest collections of X industrial equipment as it's an industrial line It's some very tight curves and sharp graded. So you're not going to see any of the Pacific's or anything like that here It really is all it's all locos And steam over here we have been here before on Henry's adventures when the IFA club had a rally Here we came here and we had loads of tribunts and larders today. It's just my larder Built at the Gorton Foundry By the peacock in 1879. So built in Manchester. That's really I'd love to have a trip behind that Obviously won't do today, but perhaps I'll come back and have a gala on and then this one I think is Fascinating this little train tank locomotive. So I'm gonna go and have a look round the rest of the place So we just saw the train arrive with a diesel locomotive Which will have a ride on later I just thought we'll come into the museum shed because I think this is quite a nice little shed They've gotten you can see some of their locos. They're not using rather than just being shut away in the shed No one can see you can come in shed and have a look. So we've got a packet tank here. I'm bridge number one Face on it Another packet those you don't know that's a works number That's number. Oh, sorry the year the loco was built. So when they Would have been building the locos in the works then the next one would have been to zero eight two And behind me here. These are the north Staffordshire railway or the knotty as it was known I cannot see north stuff as you wrote on me. These are their heritage carriages, which I'd love to have a go in one day What'd be really good is if It's like I hear north stafford number two could be restored to steam imagine that great And then coming on with packets we have another packet this one's older 1903 so obviously it's got a lot of works number 933 So what else we got?   So what I'm gonna do now. I'm gonna go and see get a ride on the major railway, and then I'm gonna come back and Hopefully we can go for a ride or we will go for a ride on the standard gauge line