Apparently, The Guardian has been "flogging" this alarming bit of news for 3 days now--at least, according to some of the members of its own forum. For me however, it's the first I've heard of it, and it grabbed my attention like a deer caught in the headlights.
I take a strong view of internet privacy and I don't think anyone can afford to ignore the views raised by this "whistle-blower"; and that's coming from someone who normally ignores the papers/tabloids.
In the very least, I would URGE you to read this (preferably all of it), especially if you care about your rights to privacy over the internet, as well as freedom of expression, intellect and debate.
I know that government attempts to police the internet are nothing new these days; however in all my life I've never come across claims of global internet surveillance on such a grand scale. It makes the likes of corporate proposals such as SOPA, PIPA (mostly bills motivated by corporate interests as opposed to fears of terrorism, but still...) seem insignificant by comparison. As far as I'm concerned, the day the internet becomes a fully policed "state" is the day that democracy is dead.
Also, here's a video: