Conference in San Francisco according to a local tv station. Including workshops, Golf Tournament and even a dance party. He will be one of 400 usps officials in attendance. That is one of the biggest problems in washington, history always repeating itself. They kicked off a firestorm after spending ridiculous amounts of taxpayer dollars on a lavish conference, now the post office doing the same thing. Will they ever learn . My bet is no. That is it for tonights the willis report. Have a great night. Lou good evening, everybody. President obama today fresh from a three day vacation and a dustup for the White House Press corps push in the lumen sequester cuts to the top of the public agenda. 85 billio 85 billion of arbitry spending cuts per week, sure and there would be no sequester and now with nine days remaining before it all goes into effect, he is basically complaining republicans arent leaning on the issue. Mr. Obama has not taken any initiative to bring republicans and democrats together for a discussion, let alone a negotiation. And he hasnt even called Republican Leadership to talk about a compromise on sequester. Instead, listen as the president doesnt acknowledge the sequester originated in the white house, and that he bears great responsibility for resolving the issue. Republicans face a simple choice, are they willing to compromise to protect vital investments in education and health care and National Security and all the jobs that depend on it. Where would they rather put hundreds of thousands of jobs and hourl entire economy at riso close loopholes that benefit only the wealthiest americans and corporations. Lou House Speaker john boehner reminded the president the house has passed two sequester bills ignored by the democratically controlled senate. One in may, the other in december of last year. Republicans have already given mr. Obama his tax hikes on the rich. Reading just last month the president got higher taxes on the wealthy and already back for more. The American People understand the revenue debate is now closed. And congress is closed as well. The house of representatives and the senate both in recess until next monday leaving the president only four days in which to reach out to congress if there is to be a deal done before sequestration takes effect. Democrats led by the white house are opposed to cutting entitlements. Even though they make up more than 60 of federal outlay. Medicare, medicaid and Social Security alone take up 45 of the national budget. In the four plus years of the obama presidency, entitlement has been cut never. The National Liberal media enabled thenable the president o successfully blame congress for the fiscal cliff impasse, the debt ceiling battles in the various continuing resolutions that have kept the government running despite no budget. This time not even a compliant and complicit media can bail him out. The sequester unquestionably his idea and he publicly broken his own promise. There would be no sequester, at least to this point. The president told america during a president ial debate governor mitt romney on october 22 last year the sequester will not happen. We will see. A new report says military is behind an overwhelming number of Cyber Attacks against american targets. That report traces of those attacks to a single building in shanghai, headquarters of a unit of the liberation army. Hackers have stolen massive amounts of valuable information of all kinds from at least 115 american corporations over the course of the past seven years. Companies involved in everything from finance energy to infrastructure. Chinese government officials have dismissed that report is groundless, pretty much the response to all similar charges brought the years. The white house is not commenting on the new report nor the charges against. Jay carney said the United States has repeatedly talked to the government in china about cyber theft and attacks. Welwe will be joined by two experts, former Army Technology acquisition director, and the author of the coming collapse of china. Joining us in just moments. A daring robbery in belgium as thieves struck part of the world diamond trade. Belgian police are searching for eight masked gunmen. They forced their way into the Brussels International airport and onto the tarmac and stole 190 packages of diamonds and jams on a plane bound for switzerland. They reportedly both rough and polished. It was extremely wellplanned. The operation took just over 10 minutes. The thieves wore police uniforms, carrying submachine guns but no shots fired, no one was injured. The robbers were able to make off with at least 50 million worth of jams. A lowend estimate. Dto a significant blow to the diamond district whic district s supposed to be one of europes most secure safe zones, 2000 surveillance cameras and aroundtheclock police throughout the area. Best to handle diamonds and jams worth 52 billion accounting for 80 of the worlds rough diamond trade, half of the trade and other stones and gems. Back to politics. We want to give the government props for his, well, props. There you see him and his supporters. The president flanked by First Responders here as they put jobs on the line with their refusal to take this possibility for what was after all his idea, sequester and his pledge to question would not have been. He loves this stuff. He was pushing obamacare back in october in this instance of thousand nine. Here is one of my particular favorites. Here he is backed by wealthy americans. There is a set of props while pushing the buffet rule. Those are some expensive props. I like that. College students invited to be set pieces pushed student loan reform. Seeing here is fronted by middleclass americans. That is just a month ago the president utilized Young Children to push gun control. Hold the president antirepublic rhetoric play out . Will he prevail, or will the republicans win . Joining us is the ateam. Good to have you with us. Your reaction. Showing no shame in using. To use props like this in such a dire straits, does one thing two months ago with new town, not to do this again with the wealthy individuals because that is where he is going after. Lou i love that kind of folks out to do that. Republicans and antirepublican rhetoric today. Here it is, on the record, sequester is his idea, on the record that he promised there would be a sequester take effect. I guess i am so much of a mom, it looks to me kids in a sandbox saying i will take out my toys and going home. You are one recess, no coming together. I know that is very simplistic but it is angry for all of us as american citizens to say wait a second, were paying you to be able to do this, respond to these questions and you are not doing it. Youre like those kids in the sandbox. Lou why does do we point out these are bold faced lies . There used to him with president obama recently. This sequester not only the president wont take responsibility for it. He has asked the author of it, jack lew, he has now nominated to be treasury secretary. And it was the white house who insisted half is supposed to be in defense spending and the other half in sequester spinning. The president , what the president was talking about today you know very well republicans are not going to accept. They will not accept another huge tax increase and really unknown proportions because he hadnt set up an offer, so what all this means is the sequester will take place. Do you agree . Not only did he sign it into law, but the fact he assumed republicans would spot it, republicans would not go along with it because of the military cuts, but what the president has lost sight of his getting the tax hikes earlier this year, he didnt get any spending cuts and it is all about spending cuts and Everybody Knows the country needs but they cant agree on the details. By pushing it off, the president has handled the republicans to leverage he had in the tax hikes. Now theyre going to get the spending cuts they want. Lou are the republicans going to win one here . I think so. Im not so sure. He is poisoning the republican brand every time he goes to the podium at the white house and it worked in the election back in november and it may work again. I think the republicans have to stay united, that is the key. If they stay united, they will have to come back with a reasonable package whether there are tax reforms in closing loopholes that dont produce revenue is a more complicated thing but on the issue of spending, republicans have the upper hand and should do something. Lou the ateam will be back with us in this show. And americas doctor will join me to talk about what is on the president s state of mind. And why not mentioning gangs when talking with the murder capital of america. Coming up. No rescue, no retribution. The authors of benghazi, the definitive report, join us next. Cyber attacks the Chinese Military and the Obama Administration acting as if that was news to them. It is not. That story is next. With the spark cash card from capital one. Boris earns unlimited rewards for his Small Business. Can i get the smith contract, ease . Thank you. Thats three new paper shredders. [ boris ] put em on my spark card. [ garth ] boris Small Business earns 2 cash back on every pchasevery day. Great businesses deserve unlimited rewards. Read back the chickens testimony, please. Buk, buk, bukka [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose 2 cash back or double miles on every purchase every day. To you id get half. Whats in your walle all your imptant legal matters in just minutes. Protect youramily. And launch your dreams. At legalzoom. Com we put the law on your side. That your mouth is under attack, from food particles and bacteria. Y fixodent. It helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. Fixodent, and forget it. Lou the Chinese Military hacking into computers of a number of american based businesses, in fact a lot of them. They will be here minutes to discuss and analyze what is happening and why the United States is not reacting more energetically given the threat ended the actions jeopardizing u. S. National security. Stocks rallied on the first day of trading with all three indexes rising twoyear highs. The s p up 11 points nasdaq 22. Volume on the big ward still modest 3. 7 billion shares. Office depot, officemax advanced merger deals with both Companies Moving higher. Google stock above 800 per share for the first time ever. Health care stocks on news Medicare Advantage payments, to companies for services will be lower than expected, but most of those stocks recovering most of their losses. Gold continues its decline closing at 1603. 60. Crude oil up 0. 80. The bond market, weaker prices, higher yield, the treasurys 10year now 2. 03 . Apple confirmed today it has been the target of a cyber attack by hackers in china who compromised a small number of the employee computers. Apple says theres no evidence they were able to steal any data, but as the saying goes, it is early yet. The attack was perpetrated by the same group that hacked faccbook. Jeeps twitter profile send out racial slurs, claims the police were using drugs, a hacker group taking responsibility for both of those attacks against burger king and cheap. In the report cites Cyber Attacks to 150 u. S. Companies are Chinese Military. Joining me, author of the book the coming collapse of china, gordon chang. The cochair of the Strategic MilitaryAdvisory Panel and advises acquisition for the military under president s bush and obama. Good to have you all with us. I want to start here, if i may. This cannot be a reasonable response to such charges, that is the Obama Administration to basically say nothing. Good evening. This is the theme in washington. I think the silence in this town has been absolutely deafening, and we have not put this as a priority in this administration, and we continue to take the hits, we continue to see the Industrial Base eroded by chinese purchases, transfer of technology, cyber theft, intellectual property, trade theft, intellectual property theft, it is just an incredible, almost tom clancy type novel emerging here in washington. Lou you and i have talked about the attack on the United States. The military technological secrets, knowledgebased, 3500 companies, Front Companies for china, we have Cyber Security firms, u. S. Department of defense, this administration as if they have never heard of this before, there is this Little Country in the mainland called china attacking us daily. It is about 6 million Cyber Attacks per day. Lou 6 million per day. That only defense establishment, but going against corporations and private organizations lay charities, they are attacking institutions of our society and this is a problem because we dont do something about this i might as well sell the company to china. Lou i will share with you what the chairman of the Senate IntelligenceCommittee Said today about this assault on the United States. When we come back, a brandnew book charging the president s nominee to run the cia was running guns into libya up until the benghazi libya attack. And the blade runner claiming he killed his girlfriend by accident. Will a history of violence outweigh confidence in his statements . And the president s state of mind as well. And oh, yes it takes to be the murder capital of america. We are coming right back. Lou i would like to share with you, if i may, and lets see full screen if we can. Quoting from the chairman of the Senate Intelligence committee, senator Dianne Feinstein reacting today to this report same as a sobering report on the length to which the u. S. Military has needed to pass cyber legislation as soon as possible. Gordon chang, you are laughing as i said that. What in the world is going on when our response is we have to pass a law. Even worse than that, International Treaty to ban Cyber Attacks. The chinese love to sign treaties and agreements, they saw a lot of them from human rights to trade. Lou there is a law against doing this right now. Isnt that sufficient . That should be. The chinese dont honor any of these agreements. What we really need is strong american action. I dont honor their treaty obligations. Lou i want to show this element of what you have written as well, talking about the fact the chinese were not only going after valuable information, but obtaining comedy can see that quote, obtaining the ability to manipulate american critical infrastructures of the power grid is another power utilities. This is sinister stuff, is it not . This is not new. At a classified level, i would tell you senator feinstein and her colleagues knew this three, four, five years ago. Lou you have no reason to notice perhaps, but gordon and i have been reporting on this over a decade. This broadcast has carried out a segment warning precisely of this. We go back on this issue at least a decade, and as you say, it is not new, but what in the heck is this response from our government . Would like to tell you the scene the chinese are playing. Theyre playing between our government and private industry. We live in a free society, inherent of that is a revulsion, if you will, to government interference within our private networks and the chinese know this and they are playing the scene between our ability to get organized at a National Level with National Policies with National Unified command as we have in cyber come, and theyre playing that scene. We have an inherent repulsion. Lou we have a bunch of folks who seem to be scared of their shadows. A trade deficit 315 billion with the chinese. We talk about facebook, google, whomever it may be. Apple most recently hacked. Those companies dependent on china for those manufacturing, they have limited, very limited area to respond. 1. 2 trillion by the chinese, we look like were being strangled with our own money. Clearly we do not need to do this. The one thing this administration has us, things will be better, but as we post the chinese about cyber hacking, the number of incidences have gone up. Spiking dramatically in the middle of last year. Lou government is vulnerable being relentlessly attacked, what is the answer . The answer is really a deeper level of organization. We have to formulate offensive policies with regard to our unified strategic commands and we have to treat this as if it were a military attack on the United States. Lou they said they will take these kind of attacks as an act of war. We have to have the chinese were they hurt. Their economy is tied to ours, if we inspected containers, those ships wwll be backed up half way across the pacific, the chinese will get the message. Lou a lot of people pay a heavy price for that. Appreciate you being with us. Thank you. We will have a lot more on the chinese Cyber Threats to america throughout the broadcast has you just heard. It is far more than just a threat. For those who drive drunk, a new metal. The Defense Department created in only a