>> michele bachmann is here, i understand, and she is thinking about running for president, which is weird because i hear she was born in canada. [laughter] yes, this is how it starts. amazing to be in washington d.c. with all of this history and amazing buildings and here we are, at the hilton. what does it matter, i am going into a hilton. >> ranked among the most viewed political videos. midland high school students for

this year's competition, we want you to tell us which part of the constitution means the most. get into c-span by january 20, 2012. less than one month away. for your chance to win, there is $50,000 in total prizes. the studentcam video competition is open to students in grades 6- 12. .> tonight, julia anguine >> eric schmidt express' the really well. i do not think we understand the implications of living in a society where everything that we do is being watched. our phones, transmitting -- are

transmitting your location and our computers are transmitting everything we're looking at. it is becoming a situation where we actually are creating a tall surveillance system. >> tonight at 8:00 p.m. on c- span2. a discussion about the role of libertarians. a look at the logistics' of the drawdown.roop we will chat with jeffrey passel. live at 7:00 a.m. eastern here on c-span. tuesday, a look back at some of the traditional memorials held this past year. we will begin at tampa 10:00 a.m.

after noon eastern on tuesday, the memorial service for the former first lady betty ford who passed away in july. also the unveiling of the statue of president ford. it can watch that tomorrow on c- span2. remarks from eric schmidt and spoke recently at the economic club of washington, d.c. about the history of gold and the company's latest efforts in the mobile world. he warned against his internet piracy bill making its way through congress. the stock online piracy act which he said will result in the development of software that could be used to police internet contact and promote censorship.

>> today we have eric schmidt. he will make some remarks and will have time for questions. can i have your attention? thank you. eric schmidt is the executive chairman of google. and for 10 years, served as its ceo from august 2001 until april of this year. during the time that he served, its growth has been phenomenal. when he joined the company in 2001 and had $20 million in revenue. no cash and no earnings. when it went public, it had a market value of $23 billion. it went up as high as the market value of $230,000,000,000.10 times higher than the ipo price and today has a market value of $202 billion and it is the fifth highest market value. this is a long way from the

company that eric joined in 2001. he had served as ceo of novell which he sold and joined google in 2001. he was born in washington. he is a native of this area. eric grew up in this area and went to yorktown hospital in arlington. he was a star academic performance there. graduated in -- one year less of high school than normal. also was a track star. he won nine letters in track and field and went to princeton, graduated from princeton in electrical engineering and wet from princeton to the university of california berkeley burgomasters to great in computer science and in 1982, a ph.d. in computer science. from there he went to work and

xerox where they had a famous palo alto research center and he worked in their computer science lab and from there, he worked are in a few other technology companies and went to work at sun microsystems or he was there first suffer manager al rosen to be the team -- chief technology officer for sun microsystems and became the ceo of novell. today he is actively involved in a number of public issues and is the public face and the washington face of google. he also has time for other outside activities. he has served on the board of trustees and today serves on the board of the institute for advanced study and is an adviser to the president. he was on the transition team and serves as an advisor to the commission on science and technology.

eric has a wide range of technology issues he is expert on and he will talk this morning about something i think you will find interesting. we will go back and talk to him about some of the global issues and the privacy issues that are in the forefront. it is my pleasure to introduce to you over a technology leader in our country, eric schmidt. [applause] >> thank you. this is a wonderful group. david has been a colleague and friend for more than a decade. i have been looking at society and technology now especially in my new role. all of us would agree that society should organize itself so people can go and search for their dreams. they should be able to achieve what they really want. we have the emergence now of an interesting new phenomenon. it is that though -- as though

we have two rival systems. a system we know today, government, politics, law. which in many ways our -- ways are beginning to converge. we have another society that is emerging, the society of cyberspace. which has in many ways is a unifying principles. they're beginning to come in conflict. especially as some elements in places. you are imploring people in a way they were never in power before. you can think of this as a community of citizens and the society of government. i become convinced that as they work out, in a news -- a new equilibrium will emerge which is better for both. the cyberspace world will ultimately serve to keep the government's, especially the bad governments we know of that exist in other places in the world more honest and -- some of

the bad things thawill be addressed by the way the handles it.cancel the b it has to do with how our political systems work. since we're in washington i thought i would ask a relatively simple question. how long is the future? anyone have an opinion?

human systems are flawed, not perfect. they're often driven by the systems of structure them. now with our world we can measure these things and try to understand how it plays out. in the u.s., the president in his speech talked about this. my assessment of what is going on. it is dealing with two fundamental crises. the first has to do with globalization and its interconnectedness that is happening naturally. it will not stop. technology will continue. there is reasons we want to be connected. the other thing that is happening is business innovation. the western world has the jobless problem. when i look at it, i am convinced that there is an answer and that answer is the

hard answer. investing in education, especially mathematics. creating models of innovation. getting rid of roadblocks and creating new businesses. that is where the jobs are created. what is interesting is in my troubles now, what i come back to the u.s., i look at the paper and it is says that many of the debates are fat-free. one of the things we can do now -- mi something that is a surprise? i think it is true. i am a scientist. you can answer these questions. i was in europe last week and i was looking at the dollar. you'll see it, picture the white house and it says "in god we trust." i would like you to repeat after me. i have a new thing.

in god we trust. all others must bring data. [laughter] [applause] to finish up, technology is at a point now where we are seeing the emergency of a number of people love them. it is scalable. they do a good job. let's look at facebook. a people platform. a global platform for people and how the work together.

all these companies compete with each other in various ways. the amazon, a cross platform and googled as an information platform. the scalable network architecture that technologies deliver in. they're rolling through incumbencies of one kind or another. there are a number of companies that are vying to replace companies in that regard. the construction of these is the most important business story we see today. combining market value is very high. they're not done. they're just beginning. computers get faster and double every two years. within 10 years computers will be 30 times faster. that is that connected the of these networks that allows us to do amazing things.

and other companies are working hard on the future. an ability to predict things. introducing people to new ideas. my view is we should be optimistic, all of us. -- about all this. the world will be a much more informed place. the value of the platforms. american values -- the things we can bring to the world will lift people out of poverty. we're in a perverse situation. my own view is over five or ten computers and humans will be distinguishable.

humans will be good at what we do. all the things we know and love about ourselves and computers will get an extraordinarily good. when i travel, i go somewhere i want my phone to remind me i was in the city and i did have a good time. all this is possible on this device. it is important to remember this is connected to a network. there connected to supercomputers which are answer my question. i think of this is my personal supercomputer that can answer any question i care about in life.

thank you. >> it really does say that. in god we trust. >> where's the other part? >> a new currency. >> thank you. i want to talk about some of the questions you talked about. before we leave up to that i want to ask you about your background and how you got to help build global. novell and john called you up and said someone is running a company called googled. >> we were at a fund-raising party. he came up to me and said this is an interesting company. i assumed this was a terrible idea and he badgered me and said

you should at least talk to them. john has good taste in people, i thought i would go visit them. >> the interview do? >> it was very strange. it was in an old building i had an office in. they had all this food, for me to my guess. they had projected my barber fee on the wall. they proceeded to grill me couey in on m -- grill me on technology. sort of pretty strong minded. they were wrong, in my view and my view.ght in we had this huge argument.

it's been had the sense and i would be back. i had too much fun in being right and them being wrong. their argument was a device i was making would fail because of the adoption rate of the internet would make my product useless. there were completely right. which is humbling to have 25- year-old steel that to you. the only reason that we bought youtube is youtube needed this device and we build them. proving i was right. ok? >> the interview or had arguments with 10 other people before the back to you. do you run into these people? >> you had to spend the weekend with them. they went skiing.

i declined. two of the people, i said i am the luckiest guy for having had this opportunity. he said you are not. you did one thing right. you said yes. two other people said no. i want to pause there to say there is something about saying yes and leeland in life. -- in saying yes in life. somehow i said yes to a new opportunity and changed my life. >> have you run into those people who said no? >> yes. it is a pleasant conversation. i am very nice to them. >> when you shut up to work, you

have a tidy office and one day -- tiny office and one day someone took a rare office. >> it was run like a graduate school. everyone had an opinion. i had been assigned an office and i had my computer and my desk. one morning i come in and there is a gentleman who has moved in. i said hello. what do you do? i am a programmer. i have moved in. my office is crowded. i said where is your office? he said this is my office. i have five people and you were never here. at this point had a problem. i did not want to create a

cultural forfaux pas. i asked my secretary and he -- she said he just moved in. go talk to wayne. wayne said absolutely i told him he should move in. i said thanks, wayne. we sit there and he has a little desk. we sit closer than this. he is doing his programming which i am not that i familiar with. >> you're the ceo. >> apparently. >> i sit there with my computer and the phone rings. maybe a few weeks in he puts his headphones on and play his music. i am suspicious he is listening. one day i am on the phone with the original vice-president of sales and we're having this discussion about the quarter.

this is a quarter where we work on track for about 118 million of revenue. this was based on history and analysis. this is something i had a lot of experience with. you try to judge and you do not want to overcommit. he said excuse me but i know the revenue number. how do you know? i just saw that. he said i can calculated. this is the number. 142 million. i said i would not tell him i do this. for the next month as the numbers came up i was busy spending more money and had. i learned something about business. you should be able to predict your business down to a few dollars in terms of revenue

outlook. we did this and all -- analytical measurement. i expect businesses and governments to have this understanding because you can do it. we became best friends. >> is he the person who came up with the slogan, do no evil? >> he is one of them. >> what does that mean? >> i assumed it was a joke. they liked to play jokes. we had one fight. larry rollerbladed in. the most important question is we want to be the $100 billion corporation. i said does that mean revenue or valuation? he said it does not matter. >> said, i give up. i found out later this was something they did with everyone. things andd do these

this was not a joke. we're sitting there and there is an ad product being proposed and one of the engineers whose name is ruron. he said, that would be evil, and it is like a bomb goes off in the room. then the whole schedule gets thrown away. they spend an hour-and-a-half having this detailed argument as to where those changed -- where they cross the line. thing you can pull. people feel like they can speak out. >> the conventional wisdom was

that search was an afterthought. it was thought that portals were the way to go. what was that that google did that made its search engine better and went past all the other search engines that were out there of which there were many others? >> in 1990 -- 1998, 1999, they invented page rank. a different way of ranking. the polls had used it based on the number of clicks. the google innovation is the analysis is not around how many times to get hit. it is more about who poinsettia. it is an inverse fourier transform. you figure out the link structure. it was invented by larry and sergei.

i would argue if you want to create a company of that skill you need that kind of innovation. you need some new organization. early on they had -- some people would call it a graduate school atmosphere. they said an employee could spend 20% of their time doing whatever they want. did that produce ideas that were useful? another core part of the value, what we say to the technical folks as you can spend 20% of your time working on what you want. they tend to work in the area of their expertise. it does two things. there has been a series of products a lot of them up stuff. search innovation have come this way. tinkering or new ideas they have. there is another thing it does

in the culture of the company. most american corporations are higher -- supervisor mar:. the ideas come from the top. -- most american corporations are hierarchical. you cull through ideas people have generated. what happens is you get a middle manager who is on an ego trip. you have to do this and all of us have done this or been part of it. under huge pressure. the employee can look at that manager and say i will give you 100% of my 80% time. i will do everything i can in my 80% of time. there were trying hard and we get a lot of productivity and we feed them breakfast, lunch, and dinner and they bring their pets. there was a problem. i had to establish a world that you could not live in the building. you had to have a residence.

it was against the law to reside there. >> people -- their dry cleaning was getting done. >> you had to have a bad summer else. or stay in a hotel. >> what is it like to run a company where you have to founders, three of you were running the company. you were the ceo and there were the founders. how did you resolve things when you disagreed? >> we generally -- in my view it is better to have a partner. as long as they have the same goal. even though we would argue bluntly sometimes over things and people would assume this was terrible. it was the way we worked it out. they are strong-willed and i am strong willed as well. we all had the same incentive which is to deliver a great corporation. people are socially compatible, although we are separated by age, we had the same professors, similar cultural backgrounds,

personal views of life. we segregated it around. i worked on building the organization and making the trains run on time, running the meetings, establishing the intellectual basis. they ran ahead. there was never a meeting i was involved in where they had not already had the meeting and they were bored by mine. there was never a situation where i was able to add value to what they were doing. because they were running ahead. my job was to catch up and make sure the company was behind what they were doing. >> people google themselves to see what -- have you ever and are you happy with what comes up? >> it is important that they cannot change any results in any order. especially if people do not like the order. we do not change it. one of the crown principles of the company is that the answer that we give are independent of

the facts. we get lots of criticism about our ranking. ranking involves making a decision. these are the best decisions our ranking algorithm can make. today. that could always change. >> it was famous that you had to interview the people or oversee the interfering. can you still physically do that? what is the best way to get hired? it is harder to get hired at the will then to get hurt -- at google than to get into harvard. >> the idea was to run hiring committees. whta we do -- what we do is

hire the person independent of the job. we're bringing in people but we will not tell you what you work on until you show up. that helps us with intellectual property protection and people come. we had to study the question of how many interviews did you have to have? we had this poor gentleman that we interviewed 16 times before we rejected him. it was out of control. i initially mandated the no. 8. the maximum number of interviews before you decide. if you're interviewing people, they're on the edge and you are better off letting them work somewhere else. we have modified that to the magic number five. what we do is we correlate the outcome of hiring in our feedback post-hiring. five is predicted. you can run five interviews and off you go.

>> when you went public, it went into a complicated and slopestyle. -- you went into a complicated style. >> google is in the business of second price options trading advertise on goal -- second prize options. you advertise on google. you are guaranteed a price equal to that price or lower. in option. this produces the most efficient auction. we probably run more options. when we face the question of going public, the question was do we want to go through the traditional mechanism of underwriting which was largely of negotiation. one of the board member said the problem of interest between the

bankers and the company is the unsolved problem. nahyan we decided we would solve this problem. we were pilloried in the press for that. for many years. i got this letter from an alleged little old lady sing she did not want to have access. she wanted to purchase the stock and did not want to be limited to institutional investors. investors could bid on the price. for reasons i do not think we have never understood the outcome we got was pretty similar in my view to what we would have gotten had we done an institutional thing. our experience may have been unique. >> you created a fair amount of wealth.

how did you deal with the fact that hundreds of your employees were wealthy? were they still working as hard? >> people who joined the company to change the world. not to make money. for them it was entertaining the money showed up. google was so fast during this time that we simply had a decade's worth of experiences in the year. you have on appeal -- ipo, career path, and it is 30 years old and it is compressed. the same will occur in the bubble that is going on right now. all those companies will go public and they will go through a similar phenomenon. these are young people and they joined the company. quex which some say will go public next year. is that one of your biggest competitors?

for what you are trying to do? >> today we have one very clear competitor which is microsoft. we used to have two with yellow cap but now it is outsourced -- yahoo! but it is out source. we had come tradition -- competition from different quarters. we're more likely to face new competition. there is lots coming in these vertical applications that answer questions. we have not talked about yet but the mobile phone. people search differently. more searches will come off of mobile devices in more page views than on the pc and mac. a huge change. that provides a new competitor. >> did that produce ideas like google earth of google news? >> google news was 20% time.

google earth was an acquisition. we did a lot of small acquisitions. there would buy them and tell me after they had done it. people would sort of show up. very nice people always. android showed up. google earth showed up. they set this technical framework which would plow resources into. >> you buy a company we can you do not disclose them. you said you did not feel you had to. why is that? >> in general we do disclose them. sometimes we forget or they are too small. the ideal acquisition is for your technical people who can solve the precise problem who are brilliant and do not have a lot of high valuation already. >> a quarter of this search is done on the internet are alleged to be pornographic.

>> that is not true. the number is significantly lower. thank goodness. >> how did you deal with the issue of pornography in terms of people during searches through google? >> the company has had a default save search. you are not likely to encounter pornography unless you are looking for it. in which case as long as it is adult it will show up. one of our employees would run an internal test. we are a strange culture. his wife would bake cookies and if you could find porn, his wife would give you a cookie. we have the company full of people who are searching for porn to break the other them.

that is how the company police did. >> suppose someone is going for senate confirmation. if they called you up and asked if they looked for pedopheilia searches. >> we would do so under a large number of court orders and some guns. that is the first answer. there are situations where we maintain the logs of people's query. you will see on our website is quite detailed. a rough rule is that the information that identifiable -- identifiable to an ip address is retained for an order of the year. identical to i of -- an ip address is not necessarily you.

cases where we hae subpoenas. for some time, the record of your searches is retained and at a certain point we anonymize it. a person doesn't like person a, could that person get access? >> it would be difficult. they have would have to do ip targeting and get into the logs. >> you had discussions in china. are you staying in china? >> the chinese government has a truly bad set of censorship

laws. they're active center ship and it is illegal to talk about them in china and dangerous to talk about them here. roughly speaking, if you criticize some of the senior political leaders or talk about certain religions, it is dry much crime and you can be all sorts of things can happen to you. after trying to work with that for about four years, 4.5 years, we decided to -- we could not deal with it anymore. we moved to the other china. they'll say one country two systems, we like the other system r which is hongkong. china is organized with a great fire wall. we're not to reveal the existence of but i can give you its url and address. it has been heavily studied by many people here. this fire wall is a series of proxy services. when you go through look at what

your doing. if it won -- is one of these forbidden terms. shut down the connection or puts it over for review. that is how it works. there is a firewall between the hong kong and the mainland. it cannot see the same thing. you can use the virtual private networks. if you have chinese colleagues will tell you about it. that chinese government plays mole.lwhack a they try to get around the censorship. >> you are opposing dealing with pirating. why are you opposed? >> mostly because it

criminalizes the intermediaries. please do not steal copyrighted content. we need these people to build businesses and to make money. google exist to take people to high-quality, -- content. that industry has overreached. they have said we will criminalize the linking and structure of the internet itself. if someone posts a copy the video, we're going to force the intermediaries which include google and many others to take the link down. this is known as censorship of the internet links. if you do that, you're doing the same thing that these other governments want to do. there are two reasons this is important. this is a problem, we want to develop tools. we are -- in our country to follow the money.

the people who are making money from pirating content, it is illegal. with the internet, we can find them and they can be prosecuted to the fullest extent of the law and they should be. we can track them in different ways. if this law passes there will be a large number of american firms who will build powerful filtering content deletion technology which will be very much used around the world. i can assure you i hope not in america but all these other countries, they will love hacking away at the structure of the internet. all that free speech, that stuff they do not like and the internet will get to balkanized. >> you said that googletv would be embedded on the tvs sold in the u.s. and around the world. why will it be? ofwe're in the process obtaining agreements.

you can tell by the television manufacturers. most of them are putting it on high end televisions. it is the first system that mary's television and the internet video world. you turn it on and watch television. the moment you want to you can switch over to youtube and the other video services and can see everything. more importantly you can write a program that will intermix the tube. you can overlay data sources. this has been a dream of people in the media industry for decades. it is based on android and chrome which is a successful browser. they have a large number of people developing for it. it is controversial because people are afraid some how it will interrupt the with the television industry is working. my theory is it will cause people to watch more. the more jury of people watch television with a second screen

somewhere. the phone or in ipad, what have you. we can get that integrated in public and -- >> you do it now because you love the area. >> i love washington. i love the senate. i have a great deal of respect for the senate. >> why do you think google has attracted so much attention? why are so many people upset about things google does? >> the things -- folks who are looking have a job to do. there are plenty of complaints. from business partners who are not happy with something we did and we're pretty big fish in the ocean. we have been funded by someone

who should know better. there is a lot of evidence this is about competitive dynamics. i've said in my testimony is important to understand that google does not block access. if we make an innovation we offer the innovation as we did. i feel like we have told that story and it is a legal matter. i am confident we are in good shape. >> you have spent time with president obama and you were a supporter. would you say silicon valley is as supportive of him as they were when he first ran? would you ever consider going to the government full-time? >> the latter one is not only a nobody -- no but a heck no. it is not a data driven conversation as you know. you have had your share of

dealing with the government and i know you share my view. i continue to be a supporter of the obama administration. what they're trying to do -- with silicon valley. this is united as fiscally conservative and socially liberal. there is very little difference between the democratic and republican people within the community that i live in. we live in our own little bubble. we have not had the same economic situation the rest of the country has had. i do not think silicon valley is a predictive group of the rest of america. the president has strong support, and probably not as strong as he did before. with the presidency, it is a choice about a person. people make that decision for many reasons.

>> you have a great deal of wealth by almost any standard and you are a young man by almost any standard. what would you like to do with the rest of your active years? would you like to state or to another company? would you like to spend time on philanthropy? what would you like to do for the next 10 or 15 years? >> i am interested in the future of everything. i have come to the conclusion that the ride that i have had is hard to explain because it happened so fast and it will happen again and again because of the nature of internet working of society. i am convinced that many of industrial structures we have erected will be threatened and- or changed. i am convinced that many governments will be affected and may well fall would do not -- anticipate empowerment of this new model.

those of the problems i will work on. >> we have some time for some questions. there is a microphone there. you're also a pilot. when did you learn how to fly? do you have time to fly when you're working? >> i fly with professional pilots, i should add. i started flying when i was that -- at novell. you only have one turnaround in your career. they're difficult. the instructor said basically you have to focus on this or you will kill yourself. it was a good focusing device. >> question? standup. there is a mike there. -- mic there. >> thank you for coming. i find it fascinating.

a couple of things. i noticed the magnetic poles was one of the discussions by gingrich. what is the information from google earth used for? >> we should have a physicist's be experts on such matters. and the consensus is that it is as i can understand, of the threats there are from the nuclear age, this is not the high one although it is possible but there are many things that are possible. let's have a fact based conversation. the issues have to do with proliferation. the very real danger of people stealing the stuff and dirty bomb and those kinds of things which we're all aware of. there are two major threats to society, loss of life, a nuclear

war, and the second is the compound and excel rating effects of climate change. if that occurs with water and so forth. we do not know. in respect to google earth, what kind of information do you mean? >> [unintelligible] google you're running earth, we do not know where you are. please feel free to spend as much time in north dress alike. google earth, i did not appreciate how powerful it was to have a third dimension. we have proven cows a range themselves in a magnetic field direction. this was discovered by scientists to must've had nothing else to do looking for cows and their alignments.

they are head to tail, there is this order. no one is quite sure. this is one of the great mysteries of the modern age. there were a set of impact craters that have not occurred before. we have been able to chart the loss of biodiversity. the other thing is pictures are not instantaneous. for many reasons. we did not want to have it be of real-time satellite feed. there is a latency. >> what devices to use? to use an ipad? to use everything? >> everything. i use everything. google plus. i would encourage you to use all this. not just not just -- jus google. you will learn by playing with

them. you might as well spend the time. it is what our age is about. i marvel at what people are saying and doing and construct and build online. today was -- it was announced we have crossed the million multiplications platform on this device which is an android phone. this is my view, the best on ever made. i see that with bias. it is called the nexus prime. there are more apps coming out. if you are a younger person, you are building for a mobile phone. >> if you had a chance to buy facebook, would you buy it? >> i will tell you the numbers.

in an ipo history the majority are lower six months after they go public than the price they go public at. that would and for my decision. it is two-thirds or lower. it is startling. when we went public, where all their and our partner saw on the trading floor. how do you start trading? they have a fellow whose name is killer. he screams a lot. we are sitting there, and at noon, killer will start to trading. he is going this way and that way. somehow the price stabilizes. when you think about ipo's there is no trading price and killer is doing the first trade. >> [unintelligible]

>> google earth has google oceans. you can go underneath and visit a lot of the wrecks. the oceans occupy 70% of the globe. the biodiversity is lost in the oceans. there is a mass extinction going on right now because of ocean as a vacation -- acidification. there is very little understood about what is going on. there is 1 million mountains that are not map and not named. think about those. you cannot reach them except with sonar which is low bandwidth and slow. they know these facts because

they can look at magnetic fields from satellites. i am interested in funding research into how to address all of this. >> speaking of search, and research. when google was coming along, some people thought it would do well and some were not sure. where would you suggest somebody might invest if they wanted to find the next google. will it be in technology? what area are you attracted to if you want to invest and make money? >> as part of the white house project i worked on a project where -- the president announced as the anp program. the problem in america is there is a loss of manufacturing jobs. many of us and probably you would agree that the loss of

manufacturing is really a problem from a profitability, lifestyle, middle-class problem. either industries where we could be a manufacturing leader? there is a new set of advanced materials and special drugs. the problem with climate change and green energy is it has a high capital cost. capital costs are fixed and you have high rates of growth because of scale. it is easier for us to operate in more capital intensive industry. you understand this because you have invested, especially when the capital markets are tight. everyone can make money when the capital was cheap. it is easy when interest rates are low. we do not have that in the industry. >> where do you think the egos are bigger, silicon valley or

washington, d.c.? >> there is a serious competition. [laughter] >> i want to thank you for a time. i appreciate everybody coming. hold on a second. [applause] >> a map of the first map of d.c. >> thank you. >> tonight, julia anguine on the cookies and super cookies that track where users go. eric schmidt said i do not think we understand the implications

of living in a society where everything that we do is being watched. our funds -- phones are transmitting allocation and our computers are transmitting everything we're looking at. it is becoming a situation where we are creating a total surveillance system. >> tonight at 8:00 p.m. on "the communicators". >> michele bachmann is here and she is thinking about running for president. which is weird because i hear she was born in canada. [laughter] yes, michele, this is how it starts. >> it is amazing to be in washington, d.c. bill in all these amazing buildings. here we are at the hilton. [l