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<v Speaker 1>You're listening to Bill Handle on demand from KFI AM

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<v Speaker 1>six forty.

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<v Speaker 2>If there is OKF I AM six forty live everywhere

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<v Speaker 2>on the iHeart Radio app, It's the Bill Handle Show.

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<v Speaker 2>Wayne Resnik in for Bill. Some of the stories we're

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<v Speaker 2>following for you here at KFI. La County health officials

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<v Speaker 2>say they have identified the first human case of bird

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<v Speaker 2>flu in La County. The person who has it has

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<v Speaker 2>mild symptoms. They are recovering at home. They're giving them

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<v Speaker 2>some anti virals, so it's not it's not a super

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<v Speaker 2>emergency situation for that person, thank goodness.

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<v Speaker 1>They also say this.

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<v Speaker 2>Person got the bird flu from livestock at his work

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<v Speaker 2>site that had the bird flu. It is jumping from

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<v Speaker 2>animals to people, folks. I don't know if it's panic

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<v Speaker 2>time yet.

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<v Speaker 1>No, it's not.

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<v Speaker 2>It's not panic time yet. Also, high surf also not

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<v Speaker 2>panic time. High surf warnings hiatt surf advisories in effect

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<v Speaker 2>all along the coast Ventura down through Orange County. The

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<v Speaker 2>National Weather Service says you're gonna see waves as high

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<v Speaker 2>as twelve feet at the beaches in La and OC

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<v Speaker 2>and up in Ventura. Oh boy, eighteen feet. Some waves

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<v Speaker 2>may hit that height that is too high to be

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<v Speaker 2>around in my opinion.

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<v Speaker 1>But no need to panic.

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<v Speaker 2>Just don't go to the beach or even just stay

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<v Speaker 2>you know, stay away from where.

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<v Speaker 1>The water's crashing on the shore. That's all.

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<v Speaker 2>Now, everybody loves money, and when a business sees an

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<v Speaker 2>opportunity to make a lot of money, they get very

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<v Speaker 2>excited and they start making plans to make all of

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<v Speaker 2>that wonderful money. And in this case, the business is

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<v Speaker 2>the private prison industry. And the reason that they believe

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<v Speaker 2>that they're going to start to make a lot of

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<v Speaker 2>money is because we have a new administration coming in

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<v Speaker 2>in January and the President elect, Donald Trump has said

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<v Speaker 2>he is going to undertake mass deportations, and mass deportations

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<v Speaker 2>means big money for private prisons because the Feds have

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<v Speaker 2>to put him somewhere until they deport them. Now, it

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<v Speaker 2>is true that this is something Donald Trump said before

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<v Speaker 2>his first term that he was going to deport tons

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<v Speaker 2>of people, and he did deport I mean, he didn't

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<v Speaker 2>do it, but you know what I'm saying. Under his administration,

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<v Speaker 2>they deported about nine hundred and thirty nine hundred and

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<v Speaker 2>forty thousand people less than under the Obama administration, Although,

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<v Speaker 2>and I'm not going to lie to you, I can't

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<v Speaker 2>figure out if these numbers reflect a four year term

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<v Speaker 2>for Obama or all eight years, because it would not

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<v Speaker 2>be fair to take eight years of one president and

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<v Speaker 2>compare it to four years of another president. But in

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<v Speaker 2>any event, it is it is low more than the

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<v Speaker 2>net number of Obama deportations, but way more than the

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<v Speaker 2>current president.

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<v Speaker 1>And so.

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<v Speaker 2>Even if it doesn't reach the numbers that President elect

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<v Speaker 2>Trump is thinking about right now, it will likely be

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<v Speaker 2>an increase over what we've been seeing, and that means

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<v Speaker 2>more business for the big private prison companies like Geo Group,

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<v Speaker 2>which runs a bunch of private detention facilities all over

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<v Speaker 2>the place, and they had an earnings call recently where

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<v Speaker 2>the executive chairman of the Geo Group said that this

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<v Speaker 2>was an unprecedented opportunity.

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<v Speaker 1>And that they are gearing up.

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<v Speaker 2>They are bringing beds online that currently are not, they

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<v Speaker 2>are looking at hiring a lot more staff. I wouldn't

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<v Speaker 2>be surprised if for the next couple three years, private

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<v Speaker 2>prison work becomes an employment growth industry. And they're not

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<v Speaker 2>the only one. There are other companies that do this.

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<v Speaker 2>I think Geo is probably the big daddy. I mean

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<v Speaker 2>they currently right now they're holding forty percent of all

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<v Speaker 2>ICE detainees, so they don't have a majority market share,

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<v Speaker 2>but they may have a plurality market share. They say

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<v Speaker 2>they already have enough empty beds that they could spin

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<v Speaker 2>up services there and bump up the number of people

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<v Speaker 2>that they hold in custody, and that this could lead

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<v Speaker 2>to over four hundred million dollars in additional annual revenues. Also,

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<v Speaker 2>GEO owns a company called BI Incorporated.

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<v Speaker 1>I worked with not four. I worked with BI.

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<v Speaker 2>Briefly for a time a long time ago when they

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<v Speaker 2>were starting the first electronic monitoring unit here in Los

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<v Speaker 2>Angeles under the federal courts, and I worked on that unit,

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<v Speaker 2>and we contracted with BI for services. They they hold

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<v Speaker 2>a contract for the electronic monitoring of people awaiting court dates.

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<v Speaker 2>So GEO has their hands in keeping people in prisoned

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<v Speaker 2>pending deportation. They also have their hand in monitoring people

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<v Speaker 2>who are waiting for court dates to find out if

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<v Speaker 2>they're going to be deported or they're going to get

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<v Speaker 2>to stay, or if they're going to get a green

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<v Speaker 2>card or whatever's going to happen. So they really there's

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<v Speaker 2>a lot of money for them to make. There's some

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<v Speaker 2>other companies that are very excited, like core Civic is

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<v Speaker 2>the other It's like Coke and Pepsi. I think Geo

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<v Speaker 2>is Coke, core Civic is Pepsi. In the world of

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<v Speaker 2>private prisons, they're saying essentially the same thing. We have

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<v Speaker 2>unused beds that we can bring online very quickly. We

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<v Speaker 2>can hire more people pretty quickly. And I guess to

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<v Speaker 2>show that he is serious about doing this, President elect

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<v Speaker 2>Trump has said he will issue emergency orders that will

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<v Speaker 2>allow these private prison operators to hire people more quickly,

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<v Speaker 2>speed up the background check process because right now it

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<v Speaker 2>can take up to six months, and also to streamline

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<v Speaker 2>the normal competitive bidding process for these contracts. So they're

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<v Speaker 2>gonna do it, They're gonna do it quickly, and those

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<v Speaker 2>people are gonna get rich, no doubt.

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<v Speaker 1>All Right, let's talk about it.

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<v Speaker 2>We've been living with the twenty dollars an hour fast

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<v Speaker 2>food worker minimum wage in California. So let's see how

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<v Speaker 2>many jobs were killed and lost since that went into effect.

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<v Speaker 1>Hi, will can you hear me typing? Actually there are.

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<v Speaker 2>There are more jobs in the fast food industry in

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<v Speaker 2>California since the twenty dollars an hour minimum wage passed.

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<v Speaker 2>I remember, and you probably remember, and if you were

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<v Speaker 2>listening to KFI, it was talked about a lot. When

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<v Speaker 2>that law was signed Abe twelve twenty eight. There were

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<v Speaker 2>stories of gloom and doom for the industry. For example,

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<v Speaker 2>you may remember a franchisee of Pizza Hut, a group

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<v Speaker 2>that owned one hundred They still do own hundreds of

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<v Speaker 2>Pizza Hut locations. They said, we will lay off every

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<v Speaker 2>single one of our in house delivery drivers because of this.

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<v Speaker 2>There was a guy who owned like one hundred and

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<v Speaker 2>twenty or something Burger Kings. He said, I'm gonna have

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<v Speaker 2>to cut everybody's hours and I'm gonna have to start

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<v Speaker 2>putting in more of those self service kiosks because of this.

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<v Speaker 2>Rubios they said, we're gonna have to close like fifty

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<v Speaker 2>stores because of the rising cost of doing business in California.

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<v Speaker 1>Now in Rubio's is an.

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<v Speaker 2>Interesting case because at the time that they said that

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<v Speaker 2>that we're gonna have to close forty five fifty stores

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<v Speaker 2>because of the rising cost of doing business in California,

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<v Speaker 2>their biggest expense was their debt payments. Because they were

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<v Speaker 2>acquired by private equity firm. Private equity is almost always evil,

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<v Speaker 2>so that's a little disingenuous, but nonetheless that was the

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<v Speaker 2>tone of the news coverage in the wake of the

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<v Speaker 2>passage of the twenty dollars an hour fast food minimum wage.

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<v Speaker 2>Then it went into effect and in April, I believe,

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<v Speaker 2>and then after it went into effect, this group called

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<v Speaker 2>the California Business and Industrial Alliance, they took out an

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<v Speaker 2>ad in USA Today Full paid saying we've lost ten

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<v Speaker 2>thousand jobs. Okay, I was actually they actually they put

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<v Speaker 2>out that ad right after the beginning of a normal

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<v Speaker 2>yearly cycle for fast food jobs. The fact of the

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<v Speaker 2>matter is fast food jobs are seasonal, and jobs go

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<v Speaker 2>away starting around June. They go away again right around now,

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<v Speaker 2>and then they come back and that has happened.

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<v Speaker 1>That happens over and over. It's a cycle.

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<v Speaker 2>So if you use raw numbers you can get a

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<v Speaker 2>misleading result. If you use seasonally adjusted numbers. During this period,

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<v Speaker 2>actually five thousand jobs were gained. Now, the Hoover Institution,

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<v Speaker 2>which is a think tank, they're very free market, so.

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<v Speaker 1>They don't like minimum wages.

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<v Speaker 2>They say they looked at unemployment data starting from when

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<v Speaker 2>the law was signed through the end of the year

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<v Speaker 2>and that a bunch of jobs went away. But then

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<v Speaker 2>it was pointed out that they were not using seasonally

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<v Speaker 2>adjusted numbers, and they and this is why I bring

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<v Speaker 2>this up, because it's one thing for me to say

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<v Speaker 2>they said ten thousand jobs went away, but that wasn't true.

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<v Speaker 2>But it's another thing when they retracted their post and

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<v Speaker 2>admitted that they blew it. So even they ended up saying, oh, yeah,

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<v Speaker 2>we didn't do it the right way, the fair way.

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<v Speaker 2>Then came another group called the Employment Policies Institute, which

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<v Speaker 2>happens to be run by a guy who's a big

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<v Speaker 2>lobbyist for the restaurant industry, who said, hey, let's look

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<v Speaker 2>at January twenty twenty four and see what happens with

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<v Speaker 2>employment because of this law. And oh, jobs went down.

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<v Speaker 2>But remember I just told you there's a seasonal cycle

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<v Speaker 2>in place. If that person had picked September of twenty

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<v Speaker 2>twenty three, when the law was signed, for example, to

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<v Speaker 2>then look, or if they had picked April of this

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<v Speaker 2>year when it took effect, guess what, then it would

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<v Speaker 2>have shown that jobs had gone up. So you can

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<v Speaker 2>pick and choose obviously, how to put out information to

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<v Speaker 2>have it to have it put forth the conclusion that

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<v Speaker 2>you want, but that doesn't mean that your conclusion is

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<v Speaker 2>really the fair or accurate one. So is there some

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<v Speaker 2>way to know for sure what raising the minimum wage

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<v Speaker 2>does to jobs? Not really, because it's actually very complicated.

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<v Speaker 1>You know a lot of economists go.

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<v Speaker 2>Who's just beth. If you raise the wage, you gotta

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<v Speaker 2>pay people. You can't afford to have as many people

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<v Speaker 2>who are But here's the thing. If you look at

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<v Speaker 2>all of the studies that have been done in the aggregate,

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<v Speaker 2>what you find is an increase in the minimum wage

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<v Speaker 2>doesn't really have much of an effect. In some cases

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<v Speaker 2>there is some job loss, but it's not catastrophic. In

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<v Speaker 2>other cases, jobs go up. How can this even be

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<v Speaker 2>if it's such simple math. Well, because there's a flip

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<v Speaker 2>side to paying people more. When you pay people more,

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<v Speaker 2>those if we call them, lower level jobs, become more

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<v Speaker 2>attractive to workers. They stay longer, which means although they're

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<v Speaker 2>paying the workers more, they are spending less money on

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<v Speaker 2>recruitment and training and turnover and so in fact, in

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<v Speaker 2>many cases, a raise in the minimum wage pays for itself.

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<v Speaker 2>So that's the situation anyway, with the twenty dollars an

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<v Speaker 2>hour fast food. It did not lead to a job ageddin.

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<v Speaker 1>Okay, China. That's it. Let's get some news from Michael Monks. No.

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<v Speaker 2>For a long time, the FBI has been warning about

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<v Speaker 2>Chinese infiltration in the United States.

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<v Speaker 1>Now we all know, everybody knows.

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<v Speaker 2>There's some level of Chinese spying, and we think about

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<v Speaker 2>it a lot in terms of there is steal our

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<v Speaker 2>military secrets or hack into our high level computer networks.

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<v Speaker 2>But also and the specific thing the FBI has been

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<v Speaker 2>warning about four years is infiltration of by people working

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<v Speaker 2>on behalf of China into local politics cities and counties

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<v Speaker 2>which we normally don't.

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<v Speaker 1>Think of China.

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<v Speaker 2>Why would China want to bother with, for example, the

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<v Speaker 2>Arcadia City Council. Well, let's find out, because the endoment

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<v Speaker 2>has delivered by prosecutors, and this indictment says that a

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<v Speaker 2>guy was trying to work on behalf of electing a

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<v Speaker 2>particular person to the Arcadia City Council and the crime

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<v Speaker 2>would be, you know, being an illegal agent of a

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<v Speaker 2>foreign power. You can't do that. Now I'm torn about

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<v Speaker 2>saying who they think the council person is, but it

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<v Speaker 2>has been published in the La Times. So I guess

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<v Speaker 2>I'm just telling you that the La Times is saying

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<v Speaker 2>that the person who was being helped is Arcadia City

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<v Speaker 2>council person Eileen Wang. I also want to make very

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<v Speaker 2>very clear she's not been charged with any crime, and

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<v Speaker 2>it's not even clear if she knew of this guy's

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<v Speaker 2>ties to China. So it is entirely possible that Eileen

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<v Speaker 2>Wang is a completely innocent person.

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<v Speaker 1>Targeted though because of.

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<v Speaker 2>Perhaps some connections to people who are supportive of China,

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<v Speaker 2>or possibly some sincerely held beliefs that are pro China,

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<v Speaker 2>but did not know that someone acting as a foreign

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<v Speaker 2>agent of China was helping her get elected. So that

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<v Speaker 2>that having been said, which I don't say is just

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<v Speaker 2>a throwaway, it's really important that right now she not

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<v Speaker 2>be villainized. However, the idea was that the guy who's

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<v Speaker 2>been indicted, Mike Son, was putting together dossiers of who who.

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<v Speaker 1>Did Eileen Wang know?

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<v Speaker 2>What connections did she have that might be useful. Maybe

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<v Speaker 2>it's not Eileen Wang that's useful to China at all,

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<v Speaker 2>but maybe it's somebody that she knows and that would

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<v Speaker 2>make her a valuable person to get into a position

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<v Speaker 2>of power, because she simply knows people who would be

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<v Speaker 2>of assistance to China. Because that's the strategy here, get

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<v Speaker 2>in at the grassroots. We can all, we can all

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<v Speaker 2>understand going after a senate, going after a high placed

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<v Speaker 2>FBI agent, going after a huge, huge businessman. But the

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<v Speaker 2>other approach is to go in at the local level,

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<v Speaker 2>people who seemingly couldn't possibly be worth bothering with, except

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<v Speaker 2>number one, they may know people, and number two, they

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<v Speaker 2>may go on to be a big fish someday. Maybe

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<v Speaker 2>you're a city council person today, but then maybe you're

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<v Speaker 2>a state senator, and then maybe you're a governor, and

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<v Speaker 2>then maybe you're in the United States Senate. And what

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<v Speaker 2>it shows is the long, the long con the long

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<v Speaker 2>strategy of the Chinese government to infiltrate here in order

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<v Speaker 2>to get influence in place for their purposes. They're thinking,

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<v Speaker 2>they're not only trying now for now, they're trying now.

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<v Speaker 1>For much much later.

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<v Speaker 2>And the FBI knows it, and they they've been warning everybody,

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<v Speaker 2>and it seems like we're playing catch up. All right,

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<v Speaker 2>ladies and gentlemen, you are allowed to have a digital

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<v Speaker 2>license plate in California, and a couple of other states,

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<v Speaker 2>and you can display fun little messages around the edge

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<v Speaker 2>of it. And somebody's already hacked it in a heinous way.

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<v Speaker 2>Let's find out what he did in a segment we're

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<v Speaker 2>calling hacked.

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<v Speaker 1>Every name, every sett all right. Joseph Rodriguez is his name.

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<v Speaker 2>He's a researcher with IOActive, which is a security firm.

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<v Speaker 1>And here's what he did.

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<v Speaker 2>So these digital license plates are sold by a company

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<v Speaker 2>called Reviver. You put them on your car, and as

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<v Speaker 2>I said, you know how you can put a frame

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<v Speaker 2>around your license plate from your car dealership or something

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<v Speaker 2>that says, you know, eat, pray, love, or my other

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<v Speaker 2>car is a thing whatever. So with these you can

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<v Speaker 2>do it electronically and change it at will. And that's

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<v Speaker 2>I guess what people like about it, all right. So

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<v Speaker 2>here's what he did. So he got one of these things,

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<v Speaker 2>and there's a sticker on the back of it, and

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<v Speaker 2>you take the sticker off and it reveals some connectors,

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<v Speaker 2>and he put a cable on the connectors and he

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<v Speaker 2>was able to rewrite the firmware of this license plate

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<v Speaker 2>in a few minutes. And now with this new basically

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<v Speaker 2>operating system installed, he can control the license plate from

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<v Speaker 2>an app over bluetooth and change the entire thing to

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<v Speaker 2>show anything he wants. So the idea is, hey, man,

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<v Speaker 2>you want to go one hundred miles an hour through

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<v Speaker 2>a speed trap, Well just change your license plate number

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<v Speaker 2>to something else. And you could change your license plate

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<v Speaker 2>number two. I mean, I guess you could have it

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<v Speaker 2>say like, UH, can't get me. I don't know, it's

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<v Speaker 2>probably too many letters, but you get my point. But

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<v Speaker 2>here's the thing. Here's why you should be concerned about

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<v Speaker 2>this idea of somebody being able to change their digital

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<v Speaker 2>license plate to another license plate number is if they

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<v Speaker 2>change it to yours, guess who gets the tickets for

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<v Speaker 2>blowing through the toll booths. Guess who gets the speeding

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<v Speaker 2>tickets from the speed cameras you get them. Nobody wants

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<v Speaker 2>that this also could be done maliciously on purpose. I

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<v Speaker 2>mean you could, like, somebody could say I'm going to

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<v Speaker 2>change my license plate number so I can speed in

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<v Speaker 2>evague tolls and they happen to pick yours unwittingly. Or

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<v Speaker 2>maybe you got a neighbor who doesn't like you and

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<v Speaker 2>they've got one of them and they're like, you know what,

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<v Speaker 2>I'm going to change my license plate number that guy's

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<v Speaker 2>license plate and go out and purposefully run through tollbooths

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<v Speaker 2>and speed through cameras. I would not panic about this

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<v Speaker 2>just yet. There are some caveats here. It obviously has

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<v Speaker 2>been done, however, couple of things. First of all, in

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<v Speaker 2>order to get this firmware into this license plate, what

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<v Speaker 2>he had to do is put some wires on a

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<v Speaker 2>chip inside the plate and then monitor the voltage of

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<v Speaker 2>the plate and then purposefully cause a glitch on the

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<v Speaker 2>voltage at an exact moment to turn off the security

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<v Speaker 2>features of the license plate so that he could rewrite

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<v Speaker 2>the firmware. Now, once the firmware's in, then anybody can

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<v Speaker 2>use the app and do it. But the it's you know,

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<v Speaker 2>have you ever I don't know how many of you

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<v Speaker 2>have ever jail broken your iPhone, but it's kind of

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<v Speaker 2>like that, except there's a first step that's even more complicated. Also,

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<v Speaker 2>you have to have physical access to the car and

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<v Speaker 2>the license plate, and you have to take the license

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<v Speaker 2>plate off the car. And these license plates have a

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<v Speaker 2>feature that will alert the owner if they are removed

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<v Speaker 2>from the car, So you also would have to roll

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<v Speaker 2>up on your victim and jam the radio transmissions from

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<v Speaker 2>the license plate in order to do the thing so

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<v Speaker 2>that it doesn't tell the owner.

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<v Speaker 1>That you've taken the license plate off. So in practical.

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<v Speaker 2>In reality, this is unlikely to happen to anybody.

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<v Speaker 1>He did it in a lab where.

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<v Speaker 2>He didn't have to worry about the owner being alerted

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<v Speaker 2>that the license plate was taken off the vehicle, for example.

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<v Speaker 2>But just the fact that somebody thought to do it

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<v Speaker 2>and figured out how to do it means someday it

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<v Speaker 2>may become easier to do it. There. Already was another

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<v Speaker 2>security researcher two years ago who he didn't hack the

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<v Speaker 2>digital license plate, but he hacked the company's website, so

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<v Speaker 2>he was able to make himself an administrator and change

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<v Speaker 2>license plates that way. Now Reviver was able to patch that,

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<v Speaker 2>so nobody's going to be able to do that again.

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<v Speaker 2>But the problem with this new hack is you can't

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<v Speaker 2>fix it remotely or by updating the firmware because the

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<v Speaker 2>vulnerability is in the chip itself. So unless you get

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<v Speaker 2>an unless they patch the chip and then give everybody

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<v Speaker 2>new license plates, theoretically the license plate is vulnerable, but

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<v Speaker 2>it's not that vulnerable because look at all the rigamarole.

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<v Speaker 1>You got to go through to hack.

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<v Speaker 2>It KFI AM six forty Live everywhere on the iHeartRadio app.

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<v Speaker 1>You've been listening to the Bill Handle Show.

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<v Speaker 2>Catch My Show Monday through Friday, six am to nine am,

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<v Speaker 2>and anytime on demand on the iHeartRadio app.