Laws of any congress. 71. Thats because president obama did some work to push that forward. It was 51 at the beginning of december. Its fairly embarrassing. The janet yellen confirmation is expected to go through. A lot of stuff going on immigration reform, the debt ceiling, but the big thing seems to be the unemployment benefits. Here in newthe set york when the compromise was agreed to and the news roque. Business respective, this is a big deal. People who receive unemployment checks spend them. Break, theyple tax might. But the money goes immediately back into the economy. Book the great crash i just finished that yesterday and one of the things they talk about are these things thought of as welfare are actually great stabilizers and when they go, the economy can pay some bums. I read divergence. So fun. Thats a little disturbing. I havent read hunger games. Cory and i were Holding Hands earlier because my hands were so cold. We have flight canceled jetblue canceling 300 flights, cutting operations at laguardia. The worst part is your breakfast might cost more money. Any guess why . Almond milk prices skyrocketing . You have winter wheat prices and orange juice. Florida is the secondlargest grower and the crop is going to suffer. Days below 32 degrees the Weather Service says 15 of the crop could be damaged. Well, its going to come back up in march but theres not enough not enough snow on the ground. This obsessive focus on stock markets. I think that new yorkers think food comes from waiters and gas comes from a giant tube. Some of those things are true. These Climate Change issues are a big deal. Your dollars you spent anywhere goes to agricultural prices. There you go. Deal for hungry, cold people like the San Francisco 49ers. They are probably happy just to be out of the cold. Football andeek in it is interesting we were talking about this earlier, this becoming football is even more important and followed in this country even as the media becomes more and more dispersed. Football is when you throw the eggs ken. Yankees9ers beat the yesterday as far as you know. Its very exciting. You know nothing about sports. Im not hiding it. Quite you have to know something about sports. Starting out for the hour, Richard Falkenrath has a very big resume. Maybe he knows about sports also. He is a principal with the deputy group and a commissioner and senior fellow foreignouncil of relations. Most importantly, you are a skier. You probably ski one footed. Im not the best skier, but im doing all right. I was in alberta, canada. Lets compare these pictures. On the right, you have me skiing berkshires. In the three hats. Im wearing three hats and thats a very unhappy alix steel you are looking at. Im on top of a mountain in canada and it was great. Theseont know if we got pictures i havent been snowboarding in a few years. Couple of hours before i went snowboarding and very remarkable picture thats me a couple of hours after when my shoulder was dislocated. Getting me comfortably an mri. I thought that was the Northern Lights for a second. It is a great sport, but its a dangerous one. Schumacher, the great formula one champion in a coma right now, so there are certain risks. The changing demographics of sports, you see what they are doing, creating all of these sports that did not exist 10 years ago, trying to get young viewers adding things like snowboard racing and slalom courses and jumps. Lodge drinking. That would be my sport. Thats a traditional one. They have been doing that since the beginning. Change the subject from skiing to it going. The price of bitcoin jumping to over 1000 after zynga started excepting the Virtual Currency in some of their online social games. Wall street Security Experts are taking notice. Carter dority joins us to talk about this now. It is so easy to be a kneejerk skeptic on this great i tend to do this on everything but its interesting when you think about what bitcoin means, Even Companies as small as zynga. It is also striking that theres a lot of people interested in bitcoin for non trivial reasons. You take some of the venture capitalists, some of the early entrepreneurs. Theyve given careful thought to buildingthey are businesses that have a shot at success. People clearly see a technology there. It is interesting, this notion of the money that doesnt exist. When it starts to be used, people realize its not just a crazy thing by crazy people. Sirius companies are starting to consider it as well. The challenge is going to be convincing a broad swath of the public that this is not just a novelty that you can play around with. I think one of the novelties is to figure out can you use this technology in a way that consumer doesnt see it . Used at lowerally that brings me to you one of the things is you have to be fairly motivated to get into it. It takes a bit of work. Who is motivated to do it . You have these internet people interested in the novelty end of other hand, you have criminals who have something to hide. But it is not really Money Laundering trade its the process of hiding the source of your laundry. Bitcoin is also more. Im not going to be a big bitcoin defender. Im just trying to get over the hump of being a big skeptic. Its not necessarily Money Laundering, but its one of the things you can do with it and read it could be even more than that as a threat to government control because it creates a currency system that never touches the odd currencies. To the fact thought that i would be interested in your thoughts on this the Treasury Department said in march that you want to be a Bitcoin Company and you want to moneys, you register as a transmitter, they had to step on this really hard. They said theres more potential than risk their, so we ought to go. I think we are overplaying the Law Enforcement angle. That was a sector they were comfortable regulating. There are other sectors like the individual owner of a bitcoin of bitcoin or the girl scouts or whoever uses it where they are not as comfortable regulating the monetary transaction. That it people have is coins will never touch the fiat currency system and there will never be in exchange for fiat currency. It will simply stay case, the drug dealer sells the coke for bitcoin and spend the bitcoin on his villa and columbia which is close to what was happening. Deal you ran started to and bitcoin, they could avoid european sanctions altogether. Thats another pox ability. If you could buy an Airline Ticket with it coin and never go to dollars to do it, thats another way to travel to avoid government control and invade government surveillance. Thats the larger risk, not so much the specific transaction. This notion that bitcoin is not revel in is essentially true, it is geographically all over the place and spreading rapidly. We did a story on bloomberg west today where there was an atm or you could exchange it coin to from your phone into dollars. I used one of those once. Argentina and china, it is clear why there is demand there. You see places like china where its not an issue of controlling or monitoring currency, its the same reason you cant get on facebook or twitter this country. Over the total control transactions. We are going to leave it there. Thank you so much. Richard is staying with us for the whole hour. We are back in two minutes. Welcome back. Im cory johnson and this is street smart. The nfl is ramping up security for its big events right here in new york not here in new york. New york and new jersey are different. Saidis is a classic you new york jets, new york giants, they all play new jersey. A very different kind of outdoor super bowl, a super bowl in a city that has been a victim of terrorism like no other city in america. You have fences and an mri machine that trucks are going to go through. Here to break it down is Richard Falkenrath. We were talking earlier about how to understand security from the super bowl level. You say you compare it to the olympics. They are both highprofile sporting events and the risks they present are different. Very, very safe. If theres a bad weather event, the surrounding parties may be vulnerable and new york city and this area is very safe. The stadium itself will be super tightly controlled. Of different agencies, not just the nfl, all the different governmental agencies, the secret service and all of them. Sochi is a totally different matter. It is an active terrorist environment right now and an area of contested government for Vladimir Putin. Caucuses,the repression and Police Action against the dissidents and usual suspects. There, the risk is much higher and therell be a greater atmosphere of repression around the event itself. What does that have to do with individual attempts to try to undermine Vladimir Putin versus the super bowl . Terrorists want to get the individual communities on their side and against Vladimir Putin. Theyre not merely bloodthirsty. They seek territorial independence and to shift the Political Support for them. How do they do that . By drawing attention to putins tactics against them. Aey are looking not just for spectacular attack that resulted in bloodshed, but the repression and Police Action of Russian Forces against what are going to be innocent civilians erie much like Vladimir Putin trying to draw into a battle in the thele east erie offscreen dynamic at the super bowl are the ads everyone talks about. At sochi, its not going to be that. You are the deputy for counterterrorism in the new york police department. The city try to prepare for the risks that might present themselves question mark the nypd is involved at the planning in the meadowlands even though it is in new jersey. Is a trickledown parties. The nfl will have a lot of promotional sponsored events and those are tightly secured. The responsibility for securing them is private and governmental. The nfl and sponsors have to acquire private security guards. Does the nypd help to identify potential targets . Do you go to those hotels or events . Details assessments for the venues for owners and tells them what the big voter abilities are. All of the vehicles will be checked. There are some special technologies and its a very robust, fullfeatured program. And i will be home during the super bowl. We are talking up the middle east and the secretary of state, john kerry. Stay with street smart. A lot is coming up. In todays global outlook, secretary of state john kerry concludes his trip to the middle east. The bulk of his meeting is late and theres one thing on the agenda, its Global Warming. There was a piece in the New York Times that says john kerry has added Global Warming to the mandatory topics at any meeting . I didnt believe you. The Obama Administration is all talk, no action. President obama did it in his state of the union. I think they would like to stop Global Warming, but they have accomplished almost nothing. They find themselves bringing it note that they are talking about it. Story. Ts just a they want to be on record as having raised it. The real efforts of u. S. Energy policy is about fracking and exploring unconventional hybrid unconventional hydrocarbons. The xl pipeline is even a bigger deal for the environment. I think fracking is in the larger scheme of things the biggest deal. Its one of the great geopolitical events on the idea that the audit states could become Energy Independent in our without the invention of fracking, we can never conceive of that. About frackingk for the next 24 hours, but i want to get your take in my reading over the weekend, i heard about saudi arabia versus iran and the power struggle between those two nations transmitting itself all the way to lebanon and syria, is that true . Theres some truth to it but its not the entirety of the picture. You are reading one team that focuses on the shiitesunni divide. Around being the shiite state and saudi arabia being the seed i state being the sunni state. You can look at the last 300 years and see that as part of the conflict. Whats different now . A number of different things. Oile are other invites producers versus nonoil producers. Israel versus it neighbors, which is where john kerry was yesterday. The arab spring and the arab state dealing with lousy, corrupt governments. Does it come from religion or secular nationalism . It has nothing to do with issues in the middle east. There is something about the distributed content divided by social media that gives voices to other people and less centralized control, whether it is people having to go through the government to get their message out or a small blog having success that the New York Times couldnt because they are the thick because they are authentic. Thats technologically possible and it wasnt just a few years ago. It is 26 minutes past the hour and a julie hyman is on the closing bell. We have had a mixed picture today, kind of all over the place in terms of direction. Right now we are down, but barely. We did get an a i s M Services Report at was that initially lower. Stocks if stocks fall today, i would be the first time we have seen a three session decline to start a year since 2009. And terms of individual laborers, an individual an interesting story in the solar sector or after Goldman Sachs did it downgrade and then upgrade. Lets talk about solar city. Those shares are trading higher but first solar is downgraded. Street smart will be back with more in a moment. Welcome back to street smart. Im cory johnson. Happy monday, everybody. Our cohost today is bloomberg contributor, Richard Falcon wrath. Hes a former security and counterterrorism adviser. The latest leak by Edward Snowden revealed the agencies Quantum Computers that could read nearly every kind of encryption used to protect inking, medical and every kind of business around the world. Is this a massive spy computer question like how is that possible . Quantum computing is a theoretical possibility now. The concept has been around since about 1980 but its not developed yet. If it ever is, it will revolutionize not just code breaking, but all big data operations. The power would be so much more efficient and robust impaired to traditional binary computers. Let me bring in someone else who knows more about this almond the author of a handful of books on security and eligibles, including my Favorite Book about factory. The shadow a greater body of work. When i see these stories come out, i feel like this is stuff you have been writing about. About this quantum computing story . Thank you. Whats new is the release of these classified documents, but the fact that the nsa has been working on quantum is not a secret. It has been paying a lot of money to colleges around the ntry for open resource open research into quantum and classified research at the university of maryland, a laboratory there. Studying quantum for a long time but its a decade away from achieving any meaningful success in it. I think james puts his finger on it. This is basically an r d program, not an operation yet. One thing the nsa has had a lot of since nine 11 is money. Since 9 11 is money. They can actually take some risks in terms of r d spending on more advanced products and quantum is one. 81 million has been used for that, but it doesnt sound like enough to get it going. Im not sure how much that they arees, but spending billions on it every year for at least a decade. To show you they dont have a lot of confidence a are ready to cryptooing quantum analysis or computing basically, the nsa is currently working on a massive computer in oak ridge, tennessee, one that will do i operationsically and per second. It will take up an entire warehouse and the amount of cooling power needed to cool the computer will be about the same amount of cooling power needed to cool both towers of the world trade center. They are working on a massive normal computer that is not quantum while they are working on research about a quantum computer. I love it whenever i read about this, you read about the stocks making supercomputers and they say they are whether computers. That was the big market here is addicting the weather but the government is the enduser for a lot of these things. Code breaking was the ,riginal purposes area in 1950s the first supercomputer was built primarily to break codes. For the became used weather and Nuclear Research and so forth. Aboutave a question hacking. If we have a huge supercomputer that can hack any code, does that mean hackers can hack back . The a radically they can hack anything. But the code breaker computers are running lots and lots of copy patience to find a decryption algorithm that works for a particular encryption employment and thats computationally excessive. The first customers for supercomputers, a company that no longer exists, was the nsa. Big andll build really powerful computers. The architecture is fundamentally different, but it is very computationally intensive. They are still around. It has gone through eighth you are mutations in the last couple of years but is still around. They have gone through a couple of permutations in the last couple of years but theyre still around. Start with code breaking brute force when you try every combination to break a code. What the nsa has managed to do from the snowden documents is find a lot of backdoors and trap doors and developed weaknesses to get into it without having to break it through brute force. I know you have so many , but they the nsa feel about how do they feel about this secret work in the open . Most people i have talked to are extremely frustrated. They usually work in absolute secrecy. Their secrec