Schmidt's quote is clearly out of context and overblown. Rather than crucifying the man, we should seek clarification of his position. Personally, I believe that his actual stance is along the lines of: "Google does everything it can to protect the privacy of users. Unfortunately, we are required to retain some data by law and some by practicality. If you are doing something you don't want known, the only way to be completely safe it to not put that data in the hands of others. However, if you had to put your private data in the hands of any major internet service company, I believe that Google is the safest choice."