yes and yes.
they can also share the files with any other government agency, including decryption. remember they have decryption technology that is 10 years more advanced that what is known to exist. Also, inherit in a patten for an encryption, there is the way to crack it which is held by the government.
ahhh good ol' NSA backdoors. Everyone should read Digital Fortress by Dan Brown, same guy who wrote Da Vinci Code. It'll really make you think twice that there is ever such a thing as a 'secure' password.
