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tv   The Kudlow Report  CNBC  May 3, 2012 7:00pm-8:00pm EDT

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report," can good jobs tomorrow boost stocks? or are we stuck at 2% growth? free mark capitalism instead of government nonsense that would've delivered us a much stronger economy. plus, i say abolish the tsa. i want security, i just don't want our airports and our country demoralized. the "kudlow report" just moments away. stay connected to cramer on madmoney.cnbc.com. i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim cramer and i'll see you tomorrow! larry, what do you have for us tonight? all right, jimmy. 2% growth is unacceptable for america. and i'm going to show you how to fix it tonight. good evening, everyone, i'm larry kudlow. this is the "kudlow report." our top story this evening. with sloppy reports on the ism services index and an outright drop in productivity, we continue to add why the economy
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is still bumping along the bottom at only 2% growth. it is unacceptable. we can do better. in fact, it's in the past three years we had trusted free market forces rather than unprecedented government intervention, we would be at a proper 6% to 8% bounceback. but you know what, folks? we will eventually get it right, i'm an optimist in a long run. also this evening, mitt romney wages war against obama the divider in chief. as team obama bungles relations with china, takes every opportunity to attack success and imposing a leftist agenda, can mitt effectively fight back in the ever important swing states? and finally, a bill in congress to abolish the tsa. bin laden has been dead for a year. remember when it was fun to travel? this whole thing is stifling business and tourist travel and demoralizing america. and the markets close down as we
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weigh jobs numbers tomorrow morning. the dow down 62, nasdaq down 36, s&p off 11. it's a theme we've been running with lately. the humpty dumpty economy. wouldn't the economy be better if the government had done nothing from the get go? nothing. in other words free market capitalism would've solved the problem sooner and delivered a true economic bounceback recovery. but these big government interventions have stifled the economy which is crawling along at a 2% plus bottom. here's a recap of some of the things thrown at the wall that haven't worked. tax hikes on the rich and successful, gigantic spending stimulus, temporary home buyers tax credits, temporary payroll tax cuts, cash for clunkers, massive fed money creation, 0% interest rates. everything they've done runs counter to free market capitalism. and if you would have worked, it already would've worked. these keynesian policies
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undermine free market at every turn and i'm getting bored with it. let's bring in our guests, cnbc contributor jared bernstein, he's a former chief economist for vice president joe biden. and we welcome back t.j. rodgers of cypress semiconductors. t.j., i want to begin with you because i am so frustrated at the lack of economic progress. and i say if we had done nothing, just nothing, let markets make the corrections, we'd be better off today than we actually are. and i'd like your distinguished opinion. >> of course. i mean of course you're right. if we look at the period of prosperity reagan through clinton. they were all characterized by low-government spending, leaving money in the private sector where it's better invested. today, take the top 1% argument. if you take money from me, i'm a top 1 percenter, then it'll come out of my investments. by the way, i invested at the
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founding at the venture in google, facebook, and cisco. so it'll take money out of my investment portfolio, which is here in silicon valley invested properly and send it to washington for some boondoggle b.s. project that's "shovel ready." >> okay. so let me jump in here. first of all, hello, t.j., and hi, larry. and t.j. sounds like you made some darn smart investments. first of all, there has been no tax increase under president obama. so i'm not sure what t.j.'s talking about. hasn't happened. second of all, i hate to bring facts into the discussion, but i simply have to. when this president inherited this economy, gdp was contracting at a nightmare-ish rate of 9%. i've never seen anything like it. jobs hemorrhaging 800,000 per month. literally two quarters later in the second half of 2009, gdp had moved from massive negatives to positives, a swing of about 13%,
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from negative 9% to plus 4%. by the last quarter of 2009 -- >> jared, jared -- >> the facts do not support your case, larry. >> jared, hang on a second. it is precisely -- t.j., let me get this in. >> all right. >> my criticism and my frustration of all of these failed government programs is this. you are right, jared, the economy had a very deep contraction. 8% or 9%. but the history of free market capitalism in this country is that deep contractions are followed by substantial springbacks. and that has not happened. >> so you're -- >> wait a minute. >> all your government interventions -- >> what you guys are talking about. you're trying to this a democrat/republican thing. it's not. >> no. >> i mentioned, for example, clinton as being a small government, low spending president, which he was. the guy that messed it up is george w. bush. that's not an anti-democratic thing.
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what the problem is that our current president who happens to be a democrat has come along with the same failed policies which is big-government spending. the fact he hasn't passed the tax cut yet. you and warren buffett are running around trying to take more money out of the private economy as we speak. >> no, look, you can't say that the president has been a massive spender on the expansion side -- the clinton and the bush and any other example. you have to understand what it was like in 2009 and that 100-year flood with literally trillions of dollars of wealth evaporated based on a housing bubble, by the way, a bubble that came out of very much the kind of economics that, larry with respect you've been touting so long -- >> no, no -- >> the bubble that came out of the government. a bubble that came out of the government. >> it came -- it didn't come out of markets, it came out of the government. >> basically, larry -- >> neither of you guys -- hang on a second. let me make this point. neither of you guys are on to
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the point i'm making. if you look at the whole history of business cycles in the united states, deep recessions are followed by substantial recoveries. that is -- i beg your pardon -- >> not in the last 20 years. >> in the last 20 years, we had small recessions. when you had a deep recession like we had in the '50s, or '70s, or early '80s. you're supposed to come from minus eight to plus eight. the reason you haven't gotten it is stifling policies. that's my point, jared bernstein, and if you're bumbling around at 2% economic growth, 3 1/2 years -- >> there's no recovery under socialist government. >> there's no recovery under socialist government. >> that's just name calling. that doesn't add anything to the government. here's what you're saying, larry. let's get to your point. you're making an argument, i don't think you're right, but it's an argument. you're saying that had we not undertaken the stimulus, the t.a.r.p., the whole --
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>> right. >> -- that growth would've bounced back. >> right. that's what i'm saying. >> according to rinehart, literally 100 plus years of data analysis, that wouldn't have happened -- >> not from this country. they did not use this country. that's the flaw, and guys like professor cochran of chicago and professor taylor of stanford, i'll go to you, t.j., on this because these foreign studies are not about american stocks. >> it's all about leverage, my man. >> t.j., i'm just saying it's not about republican and democrat for me. >> i agree with that. let's talk about the company side. let me talk about the company side for a minute. i talked about me as a person taking money from me. i don't need it, but i think i can do more for the economy with it than the government can. but let me talk about the ceo, i'm hunkering down, i'm not hiring, i don't trust the government. we are socialists, it's not name calling, we are centralized more than we were before. we have more centralization of
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government than many of the socialist democracies in europe right now. and i'm hunkered down because i don't feel it's prudent for my shareholders to try to expand and create jobs. this environment, this government. corporate profits as a share of national income were higher in 2011 than any other year on record going back to 1929. >> that's true. >> the stock market has doubled. that stock market has doubled. >> that's true -- >> the reason my profit is higher -- >> the reason my profit is higher -- >> t.j., please -- >> because i don't want top spend money -- >> t.j. -- >> i'm unwilling to expand. yes, it's true corporate profits are higher. >> let me finish, t.j. it seems to me if you and larry want to take a clear-eyed look at the economy, you'd be coming to the opposite conclusion. given the hole that we were in, how do you explain the bounceback in financial markets? the strength of corporate profitability if everything the government did was completely wrong? it makes no sense. >> t.j., why -- >> there is no bounceback just because we're profitable. that's the point i made.
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i'm profitable because i'm not hiring and not spending money on people therefore i'm putting it on the bottom line. >> t.j., why are you holding back on spending on people? tell me why. >> because your little chart you showed in the beginning. cash for clunkers, this and that, another month before we have another hair-brained scheme about how more socialism will fix the cost -- >> name calling. look, pure name calling. if you actually talked to people who aren't interested in just making up stories and calling names, they will tell you the reason they're not hiring is -- >> i don't make up names. >> the reason they're not hiring is because they're not facing the demand for their goods and services they need to see. and there we would all agree. 2% is too slow. and if you look at europe, you'll see that the prescription that you guys are arguing is exactly the wrong medicine. we actually need to do more to boost the economy because of the contraction -- >> t.j., i want to give you the last word. >> centralization of the economy has been killing us since george
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bush took office and more centralization of the economy so i don't have to deal with his name calling. north centralization of the economy is not going to help. >> i feel like you're being impervious. >> thank you, sir, you've been terrific to play tonight. jared, my friend, please go back and look at the business cycles in the 1950s and the 1970s and the early '80s. what you will find is that very deep recessions are normally accompany with very strong recovery. >> not when it's a financial market. >> no, not when we have unprecedented government keynesian intervention. that's the point. >> we often have recoverierecov well. >> we'll debate this, and t.j.'s right, the george bush story wasn't any better. up next on "kudlow," stocks sink again. some nail-biting investors wait for tomorrow's all-important jobs report. and up ahead, where is hope and change? i remember that. mitt romney's new attacks that president obama is dividing our
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nation with class warfare. i'm not convinced that's a great attack, by the way, for mitt romney. we'll talk about it later. and in the show, abolish the tsa. i love this one. we are all sick of being violated at the airport. remember when it was fun to travel with your shoes on? some in congress are on my side. maybe i'll keep my shoes on again. and, folks, the whole point of this opening segment. don't forget, free market capitalism is the best path to prosperi prosperity, not meddling. i'm larry kudlow. we'll be right back. ♪
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i'm kayla tausche from the newsroom. the long awaited facebook ipo is upon us. the social network today filing to offer 337 million shares between $28 and $35 apiece. a deal that would raise $5.6 billion for facebook and $10.6 billion total at the midpoint of that range. now starting monday, facebook will go full-court press as it markets the deal to potential investors starting in new york and ending in california. as it approaches the trading debut on may 18th. larry, back to you. >> many thanks, kayla tausche,
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we appreciate it. now stock market work about jobs, jobs, jobs. stocks end the day in the red, april's report looms over wall street tomorrow morning at 8:30. consensus expectation, nonfarm payrolls will rise by 160,000 new jobs. that's the consensus. joining me now is former head of fixed income research at bank of america dave goldman president of macro strategy and our great friend steven weiss, author of the new book "the big win." welcome back, gentlemen. david goldman, you have been a steadfast bull, you are shifting into a bearish position. please tell us why. >> what we saw, larry, in the first quarter gdp report is the reason overall growth, there's no investment going on. we talked to the trigger pullers. they're terrified of an anti-business administration, no investment means no profits, no jobs, the consumer can't carry -- >> thank you. >> so we have to lighten up until we're sure. >> i saw that decline in
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investment, which by the way was the second slumpy quarter. and then today factory orders fell, i didn't much care for that. and so i ask you inso far as david's worries about business and investment, it's businesses that create jobs that create incomes, that create consumer spending. what's your take on that? >> my best source, a friend of mine billy green are on the front end, they do the prescreening for over 10,000 companies. he got out of the market in '07 when the numbers fell off the cliff in hiring. he told me today that the notes for april show a double-digit decline from march. >> whoa. >> that puts you significantly lower. >> in business or investment? >> in business. in hiring. he does the pre-screening for a number of fortune 500 companies around the world primarily in the u.s. those are strong numbers. the other issue is you could very well as an investor come in on monday, you have holland get elected, we know that. the rhetoric doesn't end there, it just begins because the french general election is a
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month later. you have the greek elections happening sunday. so you could see them win by a very, very thin majority. but what if they throw the coalition out now? then you've essentially had the arab spring last year and now this year you have the eu spring. do they want to be ruled by austerity measures? so you have that going on and it's not lost on the u.s. i think what you see is complete backup in investment in the u.s. as you saw in gdp. and things are slowing down and china's -- >> you cover the international beat also. are you worried about the french election, the spanish election, the spanish government, and the dutch election and the greece election? >> larry, i spoke to the man who brought down the dutch government this week. he told me he thinks spain's bankruptcy is a matter of weeks. spain is not italy. they don't have any brand names to sell. they don't have any national assets. they have a very bad banking system. so spain will bring the eurozone down at some point. but they'll kick the can down the road.
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it's not something that the american investors will hear about yet, but it is something to worry about three to six months from now. >> just a quickie on jobs. jobs are jobs, the whole world is watching. what are the parameters of tomorrow for terms of bullish or bearish. >> the whisper numbers are 120,000, flat with last month. i think if it comes in 120,000, maybe you're okay because then the qe-3 camp says victory. if you get a number close to 100,000, qe-3's not going to help at all. >> 200,000 or higher off the charts? >> it is off the charts. you're taking off big time. >> if jobs come in at 100,000, then obama will resign and hillary clinton will run for president. is that not the case? >> well, i think obama's going to get clobbered in any case. but the key thing is when big cap companies are showing 20% return in equity and would rather put their bank at
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negative real rates than plow it back into their businesses, it tells you they're terrified of an anti-business administration. and until they get that guy out, you have to lighten up a bit because if companies won't invest their own money, why should you put your money in them? >> we've got two worried distinguished investors, david goldman and steven white. thank you, gentlemen, we appreciate your honesty. coming up on "kudlow," congress gets a dramatic plea for help in a cell phone call from the blind chinese dissident. cnbc's own john harwood. this is an amazing story. can you give me a preview? >> it is an amazing story, larry. and you've got two worried investors there onset with you. the obama administration's got a major public relations problem in the handling of this dissident. we'll talk about what has played out on capitol hill and the campaign trail today. [ donovan ] i hit a wall.
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was hanging over the dialogue that secretary of state clinton are pursuing in beijing. but cheng guangcheng, the chinese dissident released from the safekeeping of u.s. diplomats in the belief that he was going to remain in china has had a change of heart. he was on the telephone today with a house hearing criticizing the president saying that he wanted more help from hillary clinton. here's cheng guangcheng. >> i want to meet with the secretary clinton. i hope i can get more help from her. i also want to thank her face-to-face. >> now, of course, the strategic and economic dialogue is ongoing in beijing. there were huge expectations for breakthroughs, but the administration has been hoping not to have it overshadowed. but the controversy over this dissident has erupted on the
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campaign trail. mitt romney was out today sharply criticizing the administration for how it handled the situation. >> if these reports are true, this is a dark day for freedom. and it's a day of shame for the obama administration. we are a place of freedom here and around the world and we should stand up and defend freedom wherever it is under attack. >> so, larry, that eruption of a campaign issue may be the most durable outcome of the events this week. the dialogue itself, which most china experts believe has been constructive since the bush administration launched it several years ago is likely to continue without a whole lot of deviation. there's been progress on intellectual property and currency as you know, but it's been overshadowed by this controversy, larry. >> john, just to square this circle on this if possible. does chen now want to come to the usa? is that a shift? and that's what's causing this uproar? >> yes. he says he wants to come to the
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united states. he said that in multiple interviews. u.s. diplomats say that's not what he said when we released him and sent him back in the belief that he was going to stay in china. the u.s. is trying to keep the temperature as low as possible. they're not giving much blow-by-blow of the consultations and their involvement in trying to help facilitate his transfer to the united states for medical reasons. you can bet they're working on it. but until we get a resolution, we don't know exactly whether or not they can tamp this down because the way it erupted over the last couple of days is not what china wanted. not what the united states wanted. >> cnbc's john harwood coming from washington, thank you very, very much. up next on "kudlow," obama sold to america in 2008 as the uniter in chief. now class warfare, attacking success, squandering bipartisanship almost every day. is mitt romney successfully fighting back? and then later, the last words of osama bin laden, new
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information on the mass murderer squirrelled in a hut. we'll have it all and a new war cry, abolish the tsa. one way to grow the economy is stop patting people down, stop making grannies undress, stop stifling business travel. we will debate it. it. put me at 5 timesd out my greater risk of a stroke, my first thoughts were about my wife, and my family. i have the most common type of atrial fibrillation, or afib. it's not caused by a heart valve problem. i was taking warfarin, but my doctor put me on pradaxa instead to reduce my risk of stroke. in a clinical trial, pradaxa® (dabigatran etexilate mesylate) reduced stroke risk 35% better than warfarin. and unlike warfarin, with pradaxa, there's no need for regular blood tests.
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welcome back to the "kudlow report." i'm larry kudlow. in this half hour, i don't think mitt romney is slamming obama hard enough on the economy. that's my view. he's not tough enough yet. is calling obama divider in chief really an effective political ploy? i don't think so. then later on, the last words of the murderer osama bin laden. new information on the mass murderer squirrelled in a hut. it's an odd story. we'll have it for you. and a bill in congress to abolish the tsa. it's a taxpayer waste, bid laden has been dead for a year, al qaeda is crippled. it's stifling business and tourist travel and demoralizing america. we'll have it all for you.
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first up, however, mitt romney should be pounding on the stagnant economy. the middle class income squeeze, the loss of trillions of dollars of home value wealth, the near 20 million underemployed. there's a long list. divider in chief? yeah, i get that. blame jimmy carter? i don't know, it's kind of goofy, could be a distraction. get to the facts, get to the economy. romney should tell people how he's going to solve the stagnant economy. let's talk about it. cnbc contributor and former clinton white house aide keith boykin. david malpass and former reagan deputy assistant secretary of the treasury, and john mclaug lin. this divider in chief business, does this poll well? is that why they're doing it? i don't think it has any economic unemployment housing content whatsoever. >> i think it's a process. two weeks ago when the
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pennsylvania primaries were decided, the slogan was let's move forward, we can do better, whatever. obama's moving forward. we can do better. that's policy, that's process. they talk about destroying this question i have in my polls which worked last year, are you better off today than you were four years ago when barack obama became president. and 65% of the voters in this country said no. 27% said yes. >> that's the key. >> right. and the point of it is, last thursday in washington, we released focus groups done on the public which where working class catholics don't see any economic recovery. you can go to the website, no recovery. >> so therefore the divider in chief stuff is a nonstarter. this is designed by inside the beltway republican consultant. david malpass, if 60% or 80% of the people think we're in a recession and have specific gripes, should mitt romney throw some facts and then throw some
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specific solutions? >> yes, he should, of course. and one of the things you should put these two together. and obama has divided people, but he's also not been engaged. i think one way you can get at this issue is say where was he when we needed tax reform? where was he when we needed an administration that could really put forward a health care plan that was constitutional and that wasn't going to raise costs? he wasn't engaged. and the effect of that is the public is out there with feeling that we're still in a recession after all these years past the crisis. >> i'm going to get to you in a second. is romney addressing the fact? that the public thinks we're still in a recession as john mclaughlin's polls? >> he's attacking obama.
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that's what you do in campaigns you have to say how different it could have been and should have been with different policies. instead of the huge fiscal stimulus in 2009 when obama could do anything that hep wanted, he should've gone forward with tax reform. >> your guy, he's going to get a pass on this again. this is like the republicans crying their eyes out that president obama's out there with air force one actually going on campaign tours. do you think that this -- put your objective analytic hat on. does romney whining about it have any real meaning? >> it does not work for two reasons. one, because you're right, john, he needs to focus on the issue of the economy. that's the issue people care about and vote about. second of all, people don't believe him because they really do like barack obama. even if they disagree with his policies, they like him as a person. the idea of attacking him as a divider isn't going to work.
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>> a little too personal. a little too personal. people like the person. >> it's unnecessary. >> even though he had a composite girlfriend at columbia when he was a young man. they still like him. >> you bring up the most obscure things sometimes. >> it's what i do. >> it's amazing to me. romney -- romney needs to run the campaign that ronald reagan ran in 1980. but he's running a campaign like a john kerry campaign in 2004. you can't win in this country, can't defeat an incumbent president unless you offer an optimistic vision of something different. >> can i ask you -- he's got to talk energy, taxes, got to talk deficits, debt, he's got to talk homes and home values and affording your mortgages and sending your kid to college. that's where he should go. now, i don't get this. romney is calling obama jimmy carter. now, come on. i know that jimmy carter was not a good president. that's too easy.
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but the days of jimmy carter were 15% inflation, 20% interest rates, and long gas lines, this is not the same thing. why is romney doing this? >> plus it was a long time ago. a lot of voters won't remember how bad that was. i do think there are similarities in the -- in the president that was ineffective. in other words, if you said what were the goals of president obama when he first took office. he's not getting -- >> are you kidding? he said he was going to do health care reform -- >> no, he hasn't gotten that done. >> you guys have been complaining about this bill for the past two years and there's no -- >> it raises costs. it's unconstitutional. >> he said he was going to end the war in iraq, he ended the war. he said he was going to pass a stimulus, passed the biggest stimulus in history -- >> he said he was going to bring unemployment down and it didn't happen. >> you cannot say that he's been ineffective as a president. >> hold it. >> he's been --
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>> if you talk about -- >> he's played golf. he's been playing golf. >> george bush did nothing but play golf -- >> come on now. >> and spend time at the ranch in california. >> george bush quit playing golf after 9/11. >> let's talk about results, though, the president has an over 40% favorable rating and over 50% jobs disapproval. what happened was he may have done those things, but they made things worse not better. and the average person is saying my life is not getting better. i'm feeling worse about everything whether it's my health care, security, my job. >> just from your polling data, very important to me, does it show that people want to get down to specifics? in other words, if the economic issues and the jobless issues and the deficit issues are high on the polling -- >> right. >> why is not govern romney going? >> he should be. i thought he was two weeks ago and they change. and you know what they did? they fell into the trap of playing my base is bigger than your base with the democrats. you're talking to democrats, they're talking to republicans, they think they're doing great.
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the whole thing is polarized. somebody has to figure out if i'm romney's campaign and tell them i can do better, i will win my vote and take some of yours. >> there are positions that can bring everybody together. you see it on the keystone pipeline. >> that's not a unifying issue. >> everybody in the country wants -- >> people are in favor or more productive energy. only going to produce 5,000 or 6,000 jobs -- >> there's only -- >> left wing radical environmentalists against keystone. there's 310 million americans in favor of it. >> regardless of whether people support the idea of having more energy production, the idea that keystone is that solution is not very clear. and obama isn't necessarily opposed to keystone. he's just going through the process -- >> sure sounds like it. sure sounds like he's opposed. >> he didn't want to be pushed into a decision. >> romney runs on issues that are popular almost nationwide.
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everybody wants tax reform. we have a terrible code. where is the treasury department proposal? obama has hundreds of people who are eager to reform, to write the reform of the tax code. he won't let them do it. >> same thing george bush authorized when he was president. >> he can do better. >> you add deficits and debt to that and that's how romney can unite the country and be specific on the issues, david malpass, you get the nobel prize. many thanks. all right. folks, it's not just obama's policies inviting criticism. it's the new 2012 slogan, as well. this is too much fun, the theory over forward and the socialist connection has been playing out in a right versus left wikipedia edit war. radio talk show host and old
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friend of the show neil boit. i basically want to know what forward means. is forward a word that down through the years is associated with socialist and communist? is that what this war is about? >> absolutely for 168 years and 1844, before they even published the communist manifesto. their book on communism came out, the name of it was -- "forward." and since that day, forward has been the theme word for socialist, marxist and communist pamphlets, columns, and books. >> neil, how in god's name could team obama be stupid enough to use this thing? i don't care how many people they have trying to erase it on wikipedia, it's there, you've been heroic, it's been out there
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in the stream of media bloggers, tv, cable, radio. how could they be this stupid? >> well, let's connect some more dots. here's how stupid it is. if you read obama's books, who did he gravitate to at college? communist student groups. what professors did he hang out with? marxist professors. where did he announce his entry into the world of politics? the living room of two marxist revolutionaries. and now he chooses a marxist theme for his campaign slogan for 2012? and the scariest thing here is that maybe it wasn't a mistake. >> well, okay. you're ahead of me. i have never called him a socialist and certainly not a communist. i understand there's association issues. but the point, neil, that drives me crazy, i don't get this. why team obama would risk a name a campaign theme that, in fact, has a historical associations
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with socialism and communism? >> they didn't -- >> there's about 60,000 other words they could have used, neil. and they chose this and i think it's one of the stupidest things i've heard. >> well, they wasted hope and change, okay. so they get the focus groups together and everybody wants to move forward. hey, that's a great word. but you know what? when you're on the economic cliff, you don't -- and somebody says move forward you turn around and say, are you nuts? it's time to go back the other way. that's where the prosperity was. >> all right. i've got to jump. neil boortz, always a pleasure to see you. take care of yourself. coming up on "kudlow," bin laden's mailbox. documents gathered by the u.s. navy s.e.a.l.s show osama bin laden's last thought before the mass murderer was raided. and who's been patted down by the tsa? grandmothers, kids, senators, cabinet members, even me. it is an outrage. i've got my own beef with them.
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documents and letters to subordinates around the mideast and africa. some of the letters were released today. and eamon javers has been working his way through them. eamon, what is the take away? >> good evening, larry. well, the documents were released by west point's combatting terrorism center today and they paint a picture of a mass murderer, somewhat of a frustrated manager of the al qaeda organization late in his tenure. these are some of osama bin laden's very last thoughts before the raid that took his life just a year ago. and in the documents, you see osama bin laden really struggling with managing al qaeda. he's deciding who to promote. deciding who to kill. and he's deciding which organizations al qaeda is going to partner with and which one it's going to keep an arm's length distance away from. there's a lot of complexity here. and it seems as if al qaeda as an organization was fracturing in the last days of bin laden's life. but, larry, there's a document in there that is fascinating.
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and i wanted to share it with you. this is al qaeda's thoughts on the stock market of all things. it's a document which is from a terrorist group that's seeking al qaeda's advice. is it acceptable under their ideology to invest money in the stock market and then take those proceeds and use them for jihad? take a look at what the answer was. and this is stock market advice from al qaeda. they say i know nothing of the circumstance and regulations of the stock markets which would qualify me to speak about things. the methods of selling in the stock markets have many complications and are full of tricks and i have no ability in this. so clearly, larry, al qaeda saying it doesn't have the wherewithal to decide whether or not to trade in the market. >> all right. pretty wild stuff, eamon javers, thanks ever so much. as always, up next this evening on kudlow, the tsa ten years later, osama bin laden dead, this america is now sick and tired of being humiliated every
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time i fly. some members of congress agree. they are pushing to privatize the tsa. i'm pretty sick of it. let's talk about fixing this problem just a moment after the break. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade. and somebody asks me a question about the volt.
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just look at all of these folks targeted by the tsa. donald rumsfeld, a little girl, the late senator ted kennedy, a grandmother, jennifer hudson, senator rand paul and me from my titanium hip replacement. that's just a few. ten years after the attacks, many americans are tired of the tsa. that includes john mica who chairs the committee on transportation and infrastructure. we welcome him back to the show. also we welcome congresswoman loretta sanchez, democrat of california and member of the committee on homeland security. mr. mica, can we go to a private security as rand paul is suggesting? or even more, the kudlow position, i'm sick to death of the whole thing. it's destroying american morale. we're being held hostage by a bunch of serpents and snakes that i think we've conquered. >> well, i share rand paul,
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senator paul's, your frustration, and millions of americans frustrations. i think we can and we must do better. and what we need to do is look at keeping government where it should be. and that's in charge of security and not trying to manage a huge bureaucracy and workforce of screeners. get them out of the personal business and into the security business. >> loretta sanchez, seriously, seriously i do a lot of traveling now to washington, d.c. it is disgusting. i have to take my shoes off, i've got to walk around, i've got to stop, i've got to do this. i've got to do that. they're frisking the grannies and the kids. this has gone to an extreme. and i want to know, is this one of these culture of corruption bureaucratic nightmares of the u.s. government that's out of control, loretta? >> well, you know, as a member of congress i also stand in the same lines, i take off my shoes,
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i actually usually if i have time opt out of the little air puff machine and everything else and actually get patted down. because i don't like all the radiation and everything else that i'm subject to every other time i go to the airport. but i think it's something that we all realize that there are problems. i know that tsa is looking at its particular policies with respect to changing and to having more fliers be able to move faster through the lines and everything. but i think privatizing brings up a lot of questions prior to the tsa. we had a privatized system and actually, you know, they were hiring people that didn't even have documents to be in this country. they were -- they had just as many problems, they had things being stolen out of bags and things. so i mean -- >> it's a problem -- >> just because you go to the private sector doesn't necessarily mean that you get it better. maybe we look at the policies of what tsa says should and should
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not be -- >> do we need this? john, do we truly need this? we have destroyed al qaeda. i know there are bad apples, but there are ways to get at the bad apple as they come without wrecking the entire country's morale. all these crazy stories we have repeatedly. you know, i get them. i've got this hip replacement. i don't feel like having my crotch felt up because i replace my hip in 2005. seriously, do we need this? >> no, i don't think you need that kind of a system. and we've tried to get them to switch over to a risk-based system. and also go after people just not things. there are millions of people who don't need that extra scrutiny. and i think there are models around the world, the israelis, many of the european countries. in fact, the united states now has the all-government model like bulgaria, romania, and poland.
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it just doesn't make sense to operate the way we are with the big-government solution. >> look, first you have to realize that what you're talking about, john, chairman, is that those are processes. those are something different than who's doing whatever it is whatever they're supposed to be doing at those stations. we can take a look at the processes and what makes sense. does it make sense to profile more? does it make sense to take a look at a different way? does it say that, hey, you know, grandmas or people in wheelchairs choshouldn't be tred that way, et cetera? that's a different issue than giving the system over to the private company. >> again, the federal government should accept the regulations, they should be connecting the dots. collecting the security information or going after as the security agency to people who pose a risk. instead, everybody's getting shaken down. >> that's it. >> and it's an insult. >> chairman mica, can't you give
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me a card in which i can figure out, unlike a driver's license. can't you give me a card and i whisk right through? >> four times i've given in legislation tsa and homeland security the direction to come up with, for example, a transportation worker identification card. they've blown $1 billion, they produce 2 million cards and don't even have a reader for the card. next week and the week after we're going to do hearings on this mess. it's a mess. >> there's been nobody more vocal about it does to workers who go to places like our ports and have to use that. there have been several systems tried with respect to trying to get, you know, somebody that uses -- >> loretta, we already have these -- >> we've had a private system that went under -- now we've got -- >> re-inventing the wheel. >> house members of john mica and loretta sanchez. i'm sorry, we always run out of time. you're terrific. thanks for coming on the show.
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this just in, the "wall street journal" reporting the obama administration will soon issue sweeping new rules for fracking on federal land, that includes new guidelines for construction wells and treating waste water. some rules said to be more favorable. the oil companies. we'll try to cover this much more tomorrow here on the "kudlow report." that's it for tonight's show. just give us cards. give us cards and whisk me right through this crazy tsa system. programming note, elon musk coming tomorrow night. dad, why are you getting that? is there a prize in there? oh, there's a prize, all right. [ male announcer ] inside every box of cheerios are those great-tasting little o's made from carefully selected oats that can help lower cholesterol. is it a superhero? kinda. ♪
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