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Unidentified Speaker, -
CO- DIRECTOR OF THE CENTER FOR ECONOMIC AND POLICY RESEARCH.
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| 00:00:04 |
HOST, -
AS WE CONTINUE OUR CONVERSATION ON CUTTING THE DEBT AND DEFICIT AND U.S. FISCAL POLICY. MR. BAKER, THE DEBT COMMISSION, AS YOU WELL KNOW, THE TWO CHAIRMEN...
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| 00:00:56 |
GUEST, -
DO WITH THE DEBT AND THE DEFICIT, THE CRISIS IS DUE TO THE FACT THAT THERE WAS AN $8 TRILLION HOUSING BUBBLE THAT COLLAPSED. THE BUBBLE WAS DRIVING...
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| 00:02:40 |
HOST, -
ROAD BEFORE. GUEST: SURE. DEFICIT AND DEBT HAS ALWAYS BEEN SOMETHING PEOPLE RAISED AS AN ISSUE. WE HAVE THIS IDEA WE
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| 00:02:49 |
GUEST, -
SHOULD ALWAYS BALANCE OUR BUDGET. WE KNOW AS INDIVIDUALS I CANNOT RUN UP $10,000 OF CREDIT CARD DEBT EVERY MONTH. WELL, THE GOVERNMENT, IN FACT, CAN...
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| 00:04:05 |
HOST, -
AT $1.20 TRILLION DEFICIT. THE $468 BILLION IS 2% TO 3% OF GDP. THAT NUMBER DOES NOT SCARE YOU? GUEST: IT WAS PROBABLY A LITTLE BIT HIGHER THAN IT SHOULD...
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| 00:04:22 |
GUEST, -
A MAJOR MACROECONOMIC IMBALANCE, SOMETHING COMING UP ON THE G-20 MEETING, STEMMING LARGELY FROM THE TRADE DEFICITS. PEOPLE THINK THE BUDGET DEFICIT ...
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| 00:05:23 |
HOST, -
WHEN PEOPLE --
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| 00:05:25 |
GUEST, -
PEOPLE SAYING WHERE THE TRADE DEFICIT BECAUSE WE HAVE A BUDGET DEFICIT. IF SOMEONE IS AT A STORE AND CHOOSE THE FOREIGN-MADE GOODS RATHER THAN DOMESTIC,...
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| 00:06:24 |
HOST, -
DIFFERENTLY. WE DIVIDE THEM BY AGE BECAUSE WE WANTED TO GET A FEEL HERE FOR DIFFERENT GENERATIONS. THE NEXT AGE GROUP WE WANT TO CALL IN OUR THE BABY...
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| 00:07:36 |
GUEST, -
IS NOT BOOSTING PRIVATE-SECTOR DEMAND. IF YOU WANT TO PUT THINGS ON THE TABLE DOWN THE ROAD, OBVIOUS TO ME IS THE MILITARY BUDGET. IT HAS INCREASED...
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| 00:08:43 |
HOST, -
TAX CUTS. >> I THINK EXTENDING ALL THE CURRENT TAX RATES AND MAKING THEM PERMANENT WILL REDUCE THE UNCERTAINTY
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| 00:08:52 |
Unidentified Speaker, -
AND AMERICA AND HELP SMALL BUSINESSES CREATE JOBS AGAIN. YOU CANNOT INVEST WHEN YOU DON'T KNOW WHAT THE RULES ARE OR WHAT THE TAX RATES ARE GOING TO...
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| 00:09:18 |
GUEST, -
WOULD NOT BE AFFECTED BY THIS. HTHERE WAS AN ANALYSIS FROM CONGRESS THAT LOOK THAT PEOPLE'S INCOMES INCLUDING SMALL BUSINESSES. IT IS HARD TO BELIEVE...
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| 00:10:36 |
HOST, -
FROM MASSACHUSETTS. CALLER: THANK YOU FOR TAKING MY CALL IT. I AGREE WITH SOME OF THE STATEMENTS HE IS MAKING. ONE THING I THINK
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| 00:10:47 |
CALLER, -
WE SHOULD ENCOURAGE IS ENCOURAGING PEOPLE TO BUY AMERICAN PRODUCTS. I THINK IF WE ALL CONTRIBUTED A LITTLE BIT, I THINK IT WOULD HELP. I THINK THE ETHANOL...
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| 00:11:32 |
GUEST, -
IDEA A FEW YEARS AGO. IT TURNS OUT, IT IS SOMEWHAT OF A NET INCREASE IN GREENHOUSE GAS EMISSIONS. IT IS PROBABLY NOT A GOOD WAY TO REDUCE OIL AS THE...
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| 00:12:02 |
HOST, -
PETER. THIS IS WHAT I HAVE SEEN IT. YOU HAVE BUYERS, SELLERS,
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| 00:12:08 |
CALLER, -
LANDLORDS, CREDITORS -- ALL OF THESE DYADS. WHAT HAPPENS OVER A PERIOD OF TIME, ONE OF THESE PARTIES ARE REQUIRES -- ACQUIRES TOO MUCH LEVERAGE OVER THE...
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| 00:13:53 |
HOST, -
THE BASIC STORY, AT LEAST MY
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| 00:13:58 |
GUEST, -
STORY ON THIS, IF YOU LOOK AT THE DECADE IMMEDIATELY FOLLOWING WORLD WAR TWO, YOU HAD A PERIOD OF GREAT PROSPERITY. THE COUNTRY WAS GROWING VERY RAPIDLY....
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| 00:15:02 |
HOST, -
IGNORING THE WARNINGS GUEST: YOU: I BEGAN WRITING THE BOOK AND I BELIEVE 2007. I WAS RIDING ON THIS TOPIC AS EARLY AS 2002. I WILL SAY IN A SENSE IT...
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| 00:16:07 |
HOST, -
CALLER: I USUALLY CALL IN TO CHASTISE THE VILLAINS. YOU ARE ONE OF THE GOOD GUYS. PERHAPS YOU CAN ANSWER THIS
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| 00:16:16 |
CALLER, -
QUESTION IT. I HAVE ENJOYED YOUR ARTICLES IN COUNTER PUNCH, THE BLOG SITE. I WOULD LIKE TO HAVE YOU GIVE ME AN ESTIMATE ON WHAT AS ADDED MORE TO THE...
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| 00:18:12 |
GUEST, -
THE COST OF BUT $2 TRILLION TO $3 TRILLION AT. THERE IS A RANGE OF COST THAT ONE COULD INCLUDE. ONE COULD ARGUE HOW MUCH OF THESE ADDITIONAL COSTS...
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| 00:18:40 |
HOST, -
BLUNDER." YOU CAN WATCH ANY OF THE SHOWS ON A WEB SITE FOR FREE. SHARON IS A BABY BOOMER. GO AHEAD. CALLER: IT SEEMS LIKE EVERYBODY BYPASSES AND THE...
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| 00:19:06 |
CALLER, -
I HAVE NOTHING AGAINST ANYBODY BECAUSE OF RACE, RELIGION, OR CULTURE. BUT WHEN PEOPLE COME OVER LIKE THEY ARE LEGALLY, IT IS CREATING A PROBLEM. THEY...
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| 00:19:50 |
HOST, -
THE TOTAL NUMBER OF BABIES BORN IN THE U.S. BUT BOTH
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| 00:19:54 |
GUEST, -
FROM PEOPLE HERE LEGALLY AND NOT ARE SIGNIFICANTLY LESS THAN THE NUMBERS YOU ARE SUGGESTING. THERE ARE COMPLEX ISSUES IN TERMS OF ILLEGAL IMMIGRANTS...
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| 00:21:11 |
GUEST, -
MIXED BAG. YOU HAD A LOT OF WEALTHY PEOPLE. YOU HAVE TO WONDER WHY SOME PEOPLE ARE DOING VERY WELL AND OTHERS ARE LIVING IN THE CRIME- INFESTED NEIGHBORHOODS...
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| 00:21:33 |
HOST, -
AN
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| 00:21:36 |
GUEST, -
ECONOMICST. HOST: CARL EMAILS IN FROM NEW MEXICO.
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| 00:21:49 |
HOST, -
GUEST: IT IS VERY HARD TO SEE HOW GETTING THE DOLLAR DOWN WILL CAUSE PEOPLE TO LOSE
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| 00:22:03 |
GUEST, -
MONEY. IF SOMEONE IN TENDED TO MOVE TO EUROPE OR ANOTHER COUNTRY, THEIR DOLLARS WILL NOT GO AS FAR. THE VAST MAJORITY OF THINGS WE PURCHASE ARE STILL...
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| 00:22:58 |
HOST, -
PRESIDENT OBAMA GROSSLY OVERSOLD THE STIMULUS. TO START
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| 00:23:03 |
GUEST, -
WITH $800 BILLION, YOU BOIL TAP -- YOU BOIL THAT DOWN A LITTLE BIT. YOU TAKE THE MONEY THAT IS BEING SPENT IN LATER YEARS, THAT IS FINE. WHAT WAS THE...
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| 00:24:25 |
HOST, -
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| 00:24:28 |
CALLER, -
IF AN INSPECTOR ONCE SAID, "ALLOW ME TO CONTROL THE ISSUES OF MONEY FOR A NATION AND I SHALL NOT CARE WHO MAKES ITS LAWS. " THAT IS EXACTLY WHAT I SEE...
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| 00:26:27 |
GUEST, -
I CORRECT HER ON A COUPLE OF POINTS, OR I DISAGREE. I AM NOT TROUBLED BY FIAT MONEY. IT HAS BEEN CONSIDERABLY MORE STABLE THAT IS REALLY WHAT TROUBLES...
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| 00:28:21 |
HOST, -
UNDERSTANDING THAT WHEN IT ILLEGAL IMMIGRANTS COME TO THIS COUNTRY, THEY DO NOT HAVE TO PAY
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| 00:28:27 |
CALLER, -
ANY TAXES FOR THE FIRST FIVE YEARS. THEY ARE GIVEN $25,000 PER FAMILY. IT JUST SEEMS RATHER EXPENSIVE FOR US TO DO THIS HOST: WHERE DID YOU GET THAT...
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| 00:28:53 |
CALLER, -
WAS LARGER THAN HERS WHEN THEY DID THE SAME AMOUNT OF WORK. THEY SAID THEY DID NOT HAVE TO PAY TAXES BECAUSE THEY WERE HERE, AND YOU DO NOT HAVE TO...
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| 00:29:22 |
GUEST, -
PROGRAM -- I FILED A TAX RETURN. THEY DO NOT GIVE YOU A BREAK IF YOU ARE AN ILLEGAL IMMIGRANT IT. THERE MAY BE SOME SPECIAL PROGRAMS FOR NARROW GROUPS....
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| 00:29:59 |
HOST, -
HOST: MIKE, GO AHEAD.
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| 00:30:04 |
GUEST, -
HOW OLD ARE YOU?
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| 00:30:08 |
HOST, -
CALLER: 60. HOST: YOU ARE A BABY BOOMER.
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| 00:30:15 |
CALLER, -
CALLER: I STILL FEEL LIKE I AM 18.
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| 00:30:18 |
HOST, -
FIRST OF ALL,
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| 00:30:23 |
CALLER, -
IF THIS GUY RAN FOR PRESIDENT, I WOULD VOTE FOR HIM. SECOND OF ALL, I WANT TO KNOW IF HE HAS EVER HEARD OF A BOOK [UNINTELLIGIBLE] THIRD, I WOULD LIKE...
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| 00:31:05 |
GUEST, -
THE PEOPLE SAYING WE HAVE TO HAVE A TAX BREAK FOR THE WEALTHY LIKE IT IS SOMETHING THAT HAS NEVER BEEN TRIED IT. PRESIDENT CLINTON RAISED TAXES ON...
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| 00:32:06 |
HOST, -
A PLAN THAT WOULD SUBSTANTIALLY REDUCE BENEFITS FOR MOST MIDDLE-CLASS WORKERS EVEN THOUGH THIS PROGRAM FELL OUTSIDE THEIR MANDATE. THEY MUST HAVE BEEN...
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| 00:32:26 |
GUEST, -
THEY TOOK IT UPON THEMSELVES TO SAY IF THEY WERE GOING TO BALANCE THE SOCIAL SECURITY PROGRAM OVER A 75-YEAR PLANNING HORIZON. HERE IS THEY ARE SUPPOSED...
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| 00:33:07 |
HOST, -
GUEST: THIS IS SOMETHING THAT CAME OUT NEAR THE END WHEN THEY WERE TRYING TO PUT TOGETHER THE FINAL PIECES OF THE HEALTH CARE REFORM PLAN. THERE
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| 00:33:21 |
GUEST, -
WERE MANY ADVOCATES OPENING UP HEALTH CARE FOR PEOPLE UNDER 65. IF THAT WORKED, YOU COULD LOWER THAT DOWN. I DON'T SEE A GOOD ARGUMENT AGAINST THAT...
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| 00:33:52 |
HOST, -
CALLER: [UNINTELLIGIBLE] HOST: OBVIOUSLY, HE IS 25.
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| 00:34:03 |
CALLER, -
GO AHEAD, BOBBIE.
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| 00:34:08 |
HOST, -
FROM NEW ORLEANS. GUESTCALLER: BAKER PRESENTED AN EXTRAORDINARILY SOBER, CLEAR PROJECTION OF WHAT WAS COMING WITH THE REAL-ESTATE
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| 00:34:28 |
GUESTCALLER, -
COLLAPSE. THE REFERENCED THAT THE REAL ESTATE COLLAPSE BUBBLE IS A DISASTER. MY QUESTIONS GO TO THE FOLLOWING. FIRST OF ALL, IS THERE A LIGHT AT THE...
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| 00:35:25 |
GUEST, -
IT DRIVES ME UP THE WALL WITH THESE DEFICIT COMMISSIONS. FOR TENS OF MILLIONS OF PEOPLE, PARTICULARLY FOR BABY BOOMERS NEARING RETIREMENT, THEIR MAJOR...
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| 00:36:45 |
HOST, -
A CULPRIT? GUEST: I THINK THE BIGGER STORY IS A LARGER TRADE AGENDA. THERE WERE ABOUT PUTTING
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| 00:36:56 |
GUEST, -
MANUFACTURING WORKERS IN THE UNITED STATES IN COMPETITION WITH THE LOWEST PAID WORKERS AROUND THE WORLD. WE HAVE DONE THAT WITH JUST ABOUT EVERYONE. IT...
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| 00:37:59 |
HOST, -
CALLER: DEMAND IS WHAT THEY SHOULD BE FOCUSED ON -- THE DEFICIT COMMISSION. I DON'T
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| 00:38:06 |
CALLER, -
SEE ANYTHING THAT CREATES $1 OF DEMAND. IF YOU CUT GOVERNMENT WORKERS RIGHT NOW AT THIS TIME, A LOT OF GOVERNMENT SPENDING AT THIS TIME, IT IS GOING...
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| 00:39:21 |
GUEST, -
EXPECT PRICES TO FALL MORE BEFORE THEY EVENTUALLY STABILIZE. I KNOW YOU HAVE A LOT OF PEOPLE IN THE ADMINISTRATION WHO SAY PRICES ARE GOING TO STABILIZE....
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| 00:40:47 |
HOST, -
OTHER CO-DIRECTOR IS AN OLD FRIEND THAT WENT TO COLLEGE WITH ME.
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| 00:40:55 |
GUEST, -
HOST: LARRY ON OUR 65 YEARS AND OLDER LINE. CALLER: OUR GOVERNMENT
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| 00:41:06 |
HOST, -
DOES SOME PRETTY UNINTELLIGENT SPENDING IN MY WAY OF THINKING. WE HAVE A CRUISE
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| 00:41:12 |
CALLER, -
SHIP OFF OF THE CALIFORNIA COAST RIGHT NOW WHICH IS IT DID IN THE WATER. THE CARNIVAL CRUISE LINE HAS THE MILITARY, ALL OF THESE BOATS, PLANES, SHIPS,...
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| 00:41:54 |
GUEST, -
THE FIRE DEPARTMENT TO COME THERE AND NOT HAND ME A BILL. I PAY MY TAXES SO I EXPECT THE FIRE DEPARTMENT TO PUT OUT THE FIRE. IF SOMEBODY DOES AN ACTIVITY...
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| 00:42:43 |
HOST, -
I DON'T HAVE KIDS SO I AM NOT LOOKING AT THE SCHOOL SYSTEM. I LOOK AT THE
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| 00:42:51 |
GUEST, -
SERVICES I GET AS A CITIZEN AND THE ONES THAT I EXPECT TO GET WHEN I HIT THE RETIREMENT AGE. I EXPECT MY SOCIAL SECURITY AND MEDICARE. YOU CAN ALWAYS...
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| 00:43:44 |
HOST, -
NERVOUS RIGHT NOW. THE PEOPLE WHO ARE MAKING A BIG DEAL ABOUT RAISING TAXES AND
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| 00:43:50 |
CALLER, -
LOWERING TAXES, I FEEL THAT IS WALL STREET. NO MATTER IF THE MONEY -- THE MONEY IS STILL GOING TO THE SAME PEOPLE. 80% OF YOUR INCOME WENT TO WALL STREET...
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| 00:44:15 |
GUEST, -
OF COURSE CENTERED ON WALL STREET. IT TAKES A LARGER PORTION OF ECONOMIC ACTIVITY. THE WAY TO THINK ABOUT THIS -- THIS IS NOT LIKE FOOD OR HOUSING OR...
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| 00:45:47 |
HOST, -
SERVICE, THEN FILED IT AWAY TO GATHER DUST. IS THAT TRUE? GUEST: I THINK IT IS LIKELY THAT THAT WILL BE THE CASE FOR THIS PARTICULAR REPORT. THE DEBATE...
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| 00:46:01 |
GUEST, -
WHAT DO WE DO WITH SOCIAL SECURITY, MEDICARE? THAT IS GOING TO BE A BIG ISSUE IN CONGRESS OVER THE NEXT TWO YEARS. HOST: DEAN BAKER HAS BEEN OUR GUEST....
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| 00:46:21 |
HOST, -
OF THE HOUSE ARMED SERVICES COMMITTEE. THIS IS HIS NEW BOOK. >> HERE ARE SOME OF THE HEADLINES. IN SOUTH KOREA, PRESIDENT OBAMA SAYS
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| 00:46:41 |
Unidentified Speaker, -
HE DOES NOT WANT MONTHS TO PASS BEFORE THE U.S. AND SOUTH KOREA AGREED ON A FREE-TRADE DEAL. THE TWO SIDES FAILED TO WORK OUT A DEAL, BUT MR. OBAMA SAYS...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.