I didn't hear him say it, but it makes me laugh too think that for everyone surfing the net there is someone monitoring what they're doing and saying. They'd have to subcontract that gig to India. Furthermore I've heard of Epsilon, which I think is a computer system that monitors all telephone communications. They had a real backlog of going over conversations like:
"Jimmy bombed his english exam and has too attend summer school, I could kill him!"
Also, how many times have you heard of bureaucrats getting into trouble looking at porn on gov't computers? If the empire can not stop it's own drones from doing that, why should I be afraid?
You are misunderstanding the application of technology on several fronts.
#1. The reason you don't hear of bureaucrats getting into trouble for looking at porn anymore, is because they are now patently aware that it is monitored through several traffic monitoring systems, or SPI firewalls (Sonicwall etc.) simply denying your ability to get there. They have discovered, that if they must do the deed, its easier to simply plug in a personal aircard or use their phones 3/4g connectivity on their nice 5.5" high res LCD to view Mrs. Kitty Online, if you get my drift.
#2. Data forensics is far more valuable than simply logging of phone conversations. Yes, the lower tier of technology is often of great use to legitimate criminal organizations, but data monitoring is where the bread and butter is at. Confidence in encryption technologies is what makes data networks such an attractive tool for criminals/terrorists etc.
Therefore, the government has indeed gone to incredible lengths to monitor every bit of data they can get their grubby mittens on, to include a serious interest in the mid 90's in cracking encryption. A company called Narus answered the call with an incredible technology that could not only do SPI and < 128bit encryption cracking on the fly, but could do so whilst residing on the demarcation line of the worlds largest data centers. If you are interested, the device is called the "Narus STA 6400". STA stands for "Semantic Traffic Analyzer". If you need help deciphering what this means, and what it does, I can help you. However, Google is your best friend for your understanding if you do not understand already.
The NSA shoehorned its way into AT&T data centers and placed these devices inbetween the internal network of the data centers, and the outbound provider fiber trunk leaving the facilities.
They can literally, with ease, crack your cute little encryption protocols using nothing but fingerprint recognition of encryption types, and brute force the packets open on the back end.
The NSA, undoubtedly capturing the bits and bytes of this post will probably see it pass by at some point from their monitoring position at Sugar Hill, less than 100 miles away from my position at this very moment.
If you do not understand exactly how the technology works, it would behoove you not to make blanket statements about what they are, or are not doing. You would have to understand various routing standards, protocols, and just in general how ye old world wide web works.
Big brother likes your delicious data. He wants to know what you are doing. Bank on it.