Friday, September 23, 2011

Comparing the EU and US

In a recent discussion I had on Twitter, we ended up comparing today’s European Union to the United States of the 1790’s.  This was born out of a discussion between whether cutting or increasing government spending is ‘working’, but it shifted quickly towards the US and EU.  I’ve long held that the EU is destined for failure in its current form and should even be dissolved before it’s too late and too much damage is done, and though one could argue too much damage has already been done, I’m not going to here.  A counter came that I would’ve said the same thing about the colonies of America in the late 1700’s and that the situations are very similar.  The basic line of thought is if the US was able to do it, Europe should also be able to because the differences between the two are minimal.  I disagreed because the differences are more than meets the eye, and since it’s very hard to put this out in 140-character exchanges, I’ll do it here.  This is a long one even for me.

The similarities are striking, no doubt.  We’re talking about a collection of entities (colonies or states for the US, countries for the EU) aiming for unification under one banner.  The entities are fairly near one another in geography and they have similar-ish roots and origins, having more or less ultimately descended from the Roman civilization.  From a monetary policy perspective, we both have central banks (the Federal Reserve and European Central Bank) with common currencies (the US dollar and Euro), which is among the advantages of unification.  But, here’s the thing.  The differences are even starker, and they matter here.  I think that ignoring the differences is a crucial mistake here that will lead to an erroneous conclusion.  There are several key fundamental differences between the US and its colonies then and the EU and its countries now. 

So, what are the major differences between the US of the late 1700’s and the EU of today, and do they matter?  I’ll lay out five broad differences here and why they matter, looking at the members themselves, the relationships between the members, incentive to unify, history, and leadership.

First, look at the constituents themselves.  With the US, we’re talking about a collection of colonies that were a couple centuries old.  It’s about 300 years between America’s ‘discovery’ to America’s breakaway from the clutches of Europe to become the only real nation of size in North America (aside from various Native American nations), geographically separated by thousands of miles of ocean on both sides. 

Also, remember that we’re talking about colonies, not sovereign countries, and the speed of the transition matters enormously here.  The colonies were on their own for a very short period of time.  The time between the victory in the Revolution War and the ratification of the Constitution was under six years.  The English surrendered at Yorktown in 1781 and the Constitution was ratified in 1787.  Also, the Revolutionary War was relatively short at 5-7 years (leaving wiggle room for whether you view the start of the war as the Battles of Point Pleasant or Lexington and Concord or the signing of the Declaration of Independence), though the tensions had been brewing for 10ish years prior (again with wiggle room since the Sugar and Currency Acts were from 1764 and I view those as the real start of tensions).  This is a very fast timeline.   

With Europe, we’re looking at countries that have been sovereign for ages.  I’m talking several centuries for even the younger countries and even several millennia in some cases.  Per Roman lore, their republic was founded around 753 BCE, so in that case, you’re pushing 3,000 years.  The Greek city-states predate even the Roman republic by several centuries.  300 years is America’s full history from discovery to independence, and while 300 years is not an insignificant chunk of time for Europe, we’re still talking about the continent that fought the Hundred Years’ War. 

So, two points of human psychology come into play here, and we can fairly apply human psychology to national psychology in some respects, seeing as how nations are fundamentally made up of people.  One, as people age, they naturally tend to become more engrained in their ways and less receptive to change.  Seriously, try convincing your parents that you’re right and they’re wrong about anything and tell me how it goes.  Two, along those lines, when you’ve had freedom for such a long time, you’re very reluctant to give it up.  Again, if they’re in old age, try telling your parents that they shouldn’t do some of the things they used to do and see what kind of reaction you get.  The importance of the youth of the American colonies and the quickness of the transition from colonies to Articles of Confederation to Constitution cannot be understated and human psychology presents a parallel example.

Second, look at the history of the relationships within the wholes.  No doubt, the colonies had their share of individual spats with one another, including some violence, both before and after unification.  However, aside from the Civil War several decades after America’s unification, there was nothing like what European nations have had with each other throughout their entire history.  Not only does Europe have a longer history as detailed above, but they have a longer history of conflict.  From the Roman days (Pax Romana aside) to the Hundred Years’ War to the Napoleonic Wars to the two Great Wars and so on, these are nations that have fought with and against each other for millennia.  The Americans simply got along better with each other than the Europeans historically have.

There’s also more personal psychology at work here.  The US was able to quickly forge a shared identity.  The geographic distance from Europe made the American colonists shift in relatively short order (a few generations) from tending to view themselves as Europeans to viewing themselves as something different.  In the early days of the colonies, Americans did tend to view themselves as New Yorkers or Pennsylvanians or what have you, but the Founding Fathers were able to shape a national identity to create an American people.  Today, most people in America tend to view themselves as Americans first, then Pennsylvanians or New Yorkers.  Sure, there are exceptions like Hawaii and Alaska (due partially to geographic isolation from the other 48 states) and Texas (it used to be the Republic of Texas and they’re very proud of that).

Contrast that with Europe.  Every European I know today without exception says they’re French or German or whatever first, not European.  They don’t say, “I’m from Europe.”  They say, “I’m from Portugal.”  The national pride, the pride of heritage, is very strong.  That comes from centuries/millennia of being the Greek or Italian people, etc., and this wasn’t anywhere nearly as deeply engrained in the American colonists as it is in today’s Europeans.  Would they eventually consider themselves Europeans first?  Maybe, maybe not.  Would the resistance to transitioning be stronger in Europe than it was in colonial America?  Almost certainly.

This lack of strength behind the common identity leads to anxiety and tension.  Even today, the tensions are still there.  The German people are getting increasingly tired of having to use their strong economy to bail out their troubled neighbors in the PIIGS (Portugal, Italy, Ireland, Greece, and Spain), and remember, one of the biggest sources of European conflict throughout the 20th century was the rest of Europe’s inability to cope with the economic expansion of Germany.  It’s not unreasonable from a historical perspective to view these bailouts as yet another effort to check Germany’s growth along the lines of the reparations following World War 1 and the division of Germany via the Berlin Wall following World War 2.  I’m not saying Germany’s going to go on the warpath again, but they’re rightly annoyed. 

Third, the US colonies had a major incentive to unify beyond the efficiencies to be had.  Despite our victory in the Revolutionary War, there was always the threat that the European powers would set their sights on America once again.  The War of 1812 is an example, but the Napoleonic Wars largely kept Europe’s attention focused closer to home and the Monroe Doctrine made it clear that the Americas were ours, allowing the US to entrench and expand.  Even 50 years later, during the Civil War, the English and French were very close to recognizing the Confederacy as a legitimate sovereign nation, but ended up not doing so.  Further still, we had the Spanish-American War in the 1890’s, though the Spaniards were hardly a danger to us by that point.

Does Europe have a comparable incentive today beyond the unification efficiencies?  Methinks not.  I don’t see the present economic strife as a strong enough incentive.  The recent economic strife may even act as a disincentive because a major contributing factor to the recent economic strife was this move to unify, and I think some of the people of Europe (at least Germany) are starting to realize that.  I don’t see a serious military threat to them at this time (mainly due to the US acting as a guardian, Germany’s current lack of belligerence, and the fact that China, Russia, and the Middle East appear to be more focused on more local issues).  Again, more psychology is at work here.  Without the incentive to unify, it doesn’t happen.  They need some carrot and some stick, and I really only see carrot.   

Fourth, consider that history is on my side here.  Every effort to unify Europe under one flag has ultimately failed (some more spectacularly and disastrously than others), from early efforts by the Romans to more modern efforts by Napoleon and Hitler.  The Roman Empire was probably the closest Europe has come to such unity and they were able to keep it going pretty well for a very long time, and even one of the greatest civilizations of all time eventually failed to maintain it.  Europe puts their own spin on the tradition set forth by the Greek city-states, who were notorious for not getting along well with each other, then banding together to repel an outside threat, only to revert to disliking each other shortly after the threat is resolved.  Europe has been historically ineffective at unifying itself, and even though this doesn’t mean that they won’t get it right eventually, history says it’s not a smart bet.

By contrast, the effort to unify the America succeeded and still endures.  To be fair, the United States had to do a couple reboots of sorts during our history, too, but again they’re small potatoes compared to what Europe’s had.  Coming out of the Revolutionary War, we had the Articles of Confederation before we had the Constitution, for instance.  However, as I mentioned earlier, the transition was very swift.  The Founding Fathers quickly recognized that the Articles of Confederation were destined to fail and scrapped them to work on the Constitution.  We had a Civil War a few decades later, too.  In any event, the United States has had a far less rocky path to unification.

Fifth, and this is I think the biggest x-factor, America has simply had better leadership.  The Founding Fathers were arguably the single greatest collection of political minds anywhere ever.  Abraham Lincoln’s leadership to preserve the Union during the Civil War was, on the whole, a historical masterpiece of leadership excellence.  I simply do not see the leadership capability in Europe today to make this work like we had in the US and I can’t see anyone making a reasonable argument that Europe’s current leadership is on par with that of America’s during those two periods.  The European leaders were far too slow to recognize the dangers of their present arrangement and address them.

In a nutshell, there are several obstacles to the unification of the EU today that were not present to the unification of the US in the late 1700’s.  The members, their relationships, the lack of real incentive to unify, the historical record, and the weak leadership of Europe are all factors that work together to prevent the EU from functioning properly. 

I went on for quite a while here, but it sets the stage for some more stuff I’d like to go into here, including why forming it in the first place was not only a terrible idea, but it should have been recognized as such at the time.  I’d even like to discuss not only the case for disbanding the EU, but how it can be done because I do believe it’s possible and the wisest course of action.  And my backlog grows.

Tuesday, September 13, 2011

The European Mess of 2011 and the American Mess of 2008

The global economy is a mess, and Europe is in the most trouble.  The European Union (EU) is enduring a very similar crisis to what the USA endured in 2008, but I think it’ll be worse for them than what 2008 was for us.  Because it’s a primarily European problem, I don’t believe the US markets will suffer like we did in 2008, but the weakness of the EU will continue to hurt our economy and our markets.  European markets, on the other hand, are the ones I think have more downside.  Obviously, there are differences in the crises, but they’re not so different.  The root causes of both crises are the governments and bad securities, there was/is/will be a lot of pain, and the recovery was/is/will be slow and jerky.

What caused the US’s crises?  In the USA, an overzealous federal government under the Clinton administration wanted to increase the percentage of homeowners and combat the supposed problem of racial discrimination in lending like redlining.  Basically, Clinton took Carter’s Community Reinvestment Act (CRA) and gave it some teeth and, along with the GOP-controlled Congress, repealed Glass-Stengall, which paved the way for this goal by breaking down the firewall between investment and commercial banking at financial firms (commercial banking is where people go to get loans and have bank accounts, but investment banking is merger and acquisition activity and complex securities and investments).  Also, Fannie Mae and Freddie Mac were allowed to balloon exponentially under both Clinton and Bush Jr.  Government regulators, most notably Alan Greenspan’s Federal Reserve, allowed dangerously high levels of leverage.

The government made it clear that the private sector should do its part to make mortgages more easily available.  This necessitated a relaxation of underwriting standards that had been established decades ago and had proven effective in that time.  Some financial companies resisted the government’s pressure to compromise their standards, but most didn’t and that’s where most of the bad securities came from.  The government tried to get more people into houses and strong-armed the private sector to oblige.  Both the government and financial sector lost sight of the fact that not everybody should own a house because owning a house is expensive (as I’m learning now that I’ve been a homeowner for just over a year) and not everybody has a stable enough financial base to do so.  That’s a big lesson here – not everybody should own a house.

So, we have excess leverage and weak securities.  That’s a recipe for disaster, and eventually, these securities started going bad as people who shouldn’t have been in those mortgages in the first place began to default and we had several large financial firms blow up due to being overlevered.  Some firms had say 25:1 leverage ratios.  This means that a firm borrowed 25x its actual assets in leverage.  Think about this for a minute.  With 25x leverage, you’d be wiped out entirely if you took a 4% loss on your leveraged portfolio.

Bear Sterns and Washington Mutual were sold to JP Morgan and Wachovia was sold to Wells Fargo.  JP Morgan and Wells Fargo have mostly digested these acquisitions.  Bank of America bought Countrywide and Merrill Lynch, but it’s still choking big time on Countrywide.  AIG and Citi were basically taken over by the US government.  Lehman Brothers was allowed to collapse (this was the real problem).  There was significant pain here and we eventually needed dramatic action from the Federal Reserve and the Treasury. 

Lehman was the big deal back in 2008.  That collapse is what changed the situation from a series of relatively contained problems to a full-blown crisis.  There were two reasons for this – because Lehman was such a mess with such far-reaching exposure and because our regulators mishandled it by allowing it to just blow up versus a more orderly unwind.  

What about Europe?  After all, while the US was having its meltdown in 2008, they were overseas snickering, “Stupid Americans and their overleveraged banks and worthless securities.  We don’t have these problems over here because we are so much smarter than they are.  Haha.”  Obviously, it’s in some European accent.  I hear it in a French one because of SocGen, which I’ll explain below.  

Guess what.  Not only do Europe’s banks have even greater leverage than ours, but they have even worse securities than ours.  Switch out the American subprime securities with European sovereign securities and there you have it.  Greece, Portugal, Italy, Ireland, and Spain are all countries on the brink of financial collapse because their governments have spent themselves into oblivion and their economies are grossly uncompetitive.  Yes, I’m saying explicitly right here that the European nations’ sovereign debt is probably of even lower quality than our subprime debt was.

Several European institutions are in trouble here, such as Royal Bank of Scotland, National Bank of Greece, Banco Santander, Allied Irish Bank, Banco Bilbao, and Ireland Governor and Company Bank.  The biggest one I’m worried about is Societe Generale (SocGen).  SocGen is a totally different beast from any of those, very much like Lehman.  Indeed, SocGen very well could be Europe’s Lehman.  This article by Jim Cramer is an absolute must-read for anyone who wants to understand the US/EU crises and why Lehman/SocGen are so much bigger problems than regular banks.   

We should learn two lessons from Europe.  One, as I’ve maintained all along, socialism doesn’t work.  Social democracies, as they are sometimes called, are how all these governments racked up so much debt and became such uncompetitive economies.  Two, it’s not feasible to have monetary union without political union.  Said another way, one-size-fits-all monetary policy doesn’t work and neither does a common currency.  The monetary policy for Greece isn’t right for Germany right now, for example.  Also, why should Germany have to bail out all of these troubled nations?  The Euro needs to be dissolved because it’s a failed currency and the EU needs to break up because the grand experiment has failed. 

Europe is going through today what we went through in 2008.  All you have to do is change what exactly the governments did to cause the problem and change the toxic debt from subprime to sovereign debt.  I just hope they learned what we did right and wrong in 2008, but judging by how they’ve handled things so far, I don’t think they have. 

Links:

Friday, September 9, 2011

The GOP Debate and Obama’s Speech Review

As promised, here’s my review of the GOP debate and Obama’s speech.  I also was tweeting during both events and those logs are at the end of this post in case anyone’s curious. 

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This was a lively debate.  It was fun viewing.  The candidates showed a unity against Barack Obama that the GOP sorely needs while simultaneously setting themselves apart from each other.  They were collectively more aggressive towards each other than I expected, but that’s a good thing.  I was surprised at how much praise Obama got.  Not only did he get credit for suspending EPA regulations as I predicted in my preview, but also for keeping Guantanamo Bay open.  One particularly interesting point was Newt Gingrich defending Rick Perry’s book as a book of ideas rather than a presidential plan.  Mitt Romney and everyone else had some zingers, too.  The Ronald Reagan tribute was also very well-done, and as usual, Brian Williams showed why he’s the best newscaster in America.  His hand-off to Rachel Maddow and Chris Matthews was my cue to call it a night.

I now see four tiers of candidates in the GOP race.  The GOP debate reaffirmed my belief that the race is effectively down to two candidates, namely Romney and Perry.  They were clearly the strongest.  Obviously, the Romney camp will say Romney won and the Perry camp will say Perry won, but the two represent the divide within the GOP camp between a staunch conservative in Perry versus a right-of-center Romney.  Personally, if I had to pick a single winner, it would be Romney because I believe he effectively kept Perry’s charge at bay during the debate.  Part of that relates to this being Perry’s noticeable case of first-debate jitters and the fact that he’s not a particularly strong debater to begin with, whereas Romney is far more seasoned and stronger in debates.  Perry came out strong, but I think Romney got the better of him at this debate.  As Perry gets more in his groove, this may change, yet for now, Romney is still the man, and, “To be the man, you have to beat the man,” as Ric Flair says.

Perry’s rise has relegated Michelle Bachmann to the second tier of the race.  She had a solid performance, but Perry has clearly stolen her thunder.  I originally was going to give Bachmann her own level, but I was so impressed with Jon Huntsman’s surprisingly strong performance that I’m putting him on her level.  Think of it as though Bachmann is at level 2+ and Huntsman is at level 2- because Bachmann still has way higher poll numbers than Huntsman.  Huntsman was forceful and decisive with some very good ideas.  He also very effectively handled the questions from Williams regarding his comments about the GOP, managing to dodge that bullet without naming names and without looking like a total coward (contrast that to how Tim Pawlenty flubbed with his Obama-Romney-Care point at a debate, which was a good point, but he looked like a total pushover).  Concerns about Huntsman’s toughness should be put to rest after this debate.  Bachmann and Huntsman are still in the mix, but they’re longshots.  They should both hang in there, but they should also keep in mind their potential as vice-president picks.  

Ron Paul is on a level all his own.  Paul is probably not even in the same building as the rest of the race.  As I retweeted, he’s a pure Libertarian who doesn’t even try to pretend to be a Republican.  Paul is pretty much the godfather of the Tea Party movement.  His performance likely endeared him to the Tea Party, but I don’t think it did him any favors with the rest of the GOP.  He tended to ramble and I think he came across as a bit too far right.  Paul is too libertarian even for me.  Realistically, he has very little chance of winning the primary, much less the general election, and I don’t see him being seriously considered as a vice-presidential pick.

Gingrich, Rick Santorum, and Herman Cain are in the bottom level (along with the others who didn’t appear like Buddy Roemer), and the debate left me thinking they should bow out of the race sooner rather than later and hope to be considered for the vice-president spot because they have no realistic chance of winning the primary.  Gingrich was the strongest of the three, I’d say.  I suspect if Gingrich, Santorum, and Cain dropped out, most of their supporters would gravitate towards Perry, Bachmann, and maybe even Paul, though I also could see some Gingrich supporters shifting towards either Romney or Huntsman.

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And now we’re onto Obama’s speech.  The American Jobs Act he proposed is a $450B effort to stimulate the economy that I think will be another epic failure.  It was your typical Obama speech in that it was heavy on poetic rhetoric, but light on details and new ideas.  The American people are tired of rhetoric and they want results.  He brought a few decent new ideas, but most of what Obama laid out in this speech was stuff that has already been tried and failed to stimulate the economy.  In essence, he was, for the most part, doubling down on some of his previous policies under the notion that they were ineffective not because they were poorly conceived, but because they weren’t big enough and/or haven’t had enough time to succeed. 

Before I get into all that, I was particularly disheartened when he said that America can be #1 again.  That, along with an abundance of other evidence, shows he thinks America is no longer #1, which is false.  We still are whether he believes it or not.  I’ve love to tell him, “I find your lack of faith disturbing.”  I hope people picked up on that and I hope he gets nailed for it.  I don’t expect it to hit him like malaise did to Jimmy Carter, however.

As I discussed in my preview, infrastructure spending, in theory, should work as an economic stimulus, but it doesn’t.  This is an example of a failed policy in which Obama is doubling down.  Obama’s plan calls for $80B in infrastructure spending ($30B for school modernization and $50B for roads and bridges).  He tried this with his first stimulus bill.  It didn’t work then, it didn’t work in the 1930’s when FDR tried it, and it won’t work this time, either.  It’s a necessary investment for America’s future, but it won’t boost the economy meaningfully now.

The extension and expansion of the Social Security tax cut for workers is a nice boost to our paychecks.  Keeping more of my money is fine by me.  Last year, the rate was 6.2% for the worker, versus 4.2% this year and 3.1% proposed for next year.  Employers would see no change unless they have payrolls smaller than $5M/year, in which case their tax would drop from 6.2% to 3.1%.  This reduction for small employers is a good new addition.  These cuts would be in effect for only 2012 unless they’re renewed. 

I see three problems with this measure, however.  First, it is set to expire unless renewed.  Businesses don’t usually hire with a one-year timeframe, so they have to assume that these cuts will expire and factor that into their hiring cost calculations.  This is a prime example of the regulatory and tax uncertainties that businesses face.  Will they or will they not be renewed?  It works to partially hold business decisions hostage to Washington.  3.1% may not sound like a lot, but labor is the dominant cost in many industries.  The second problem is it will exacerbate the drawdown in Social Security.  I’m guessing it will cost us at least three years’ worth of Social Security solvency based on the premise that the 2% cut for workers that Obama did this year cost us a year.  The third problem is the original tax cut didn’t work to stimulate the economy because people naturally tend to save temporary gains versus spend them.  If Obama locked this in for a few years, people may be more inclined to spend and thereby stimulate the economy.  It’s a step up from George W. Bush’s $600 check to everyone in America, but not by much.

Also, on the old ideas front, Obama has also proposed aid to state and local governments to keep teachers on the job and extensions of unemployment benefits.  These are portrayed as measures to guard against further job losses by keeping the unemployed spending money and keeping the teachers from becoming unemployed.  He plans to pay for all of this by allowing the Bush tax rates to expire for the rich and raising taxes on the oil industry.  To be honest, I can’t understand how this bill can do all this and not add to the debt, as Obama promises.  The math doesn’t add up and relies on savings showing up in the future and the assumption that the super-committee can do things the way Obama wants them to.  I also don’t see where the pro-Obama economists are getting the idea that this bill could add 1-2% to GDP.

It wasn’t all old ideas, though.  There were a couple new ideas that have promise because they indicate that the government is finally waking up to the reality that structural unemployment is a major problem here (refresher: this is when there’s a major mismatch between the skills employers are looking for and the skills of the unemployed).  What I liked in particular was Obama starting to focus on the long-term unemployed, who make up over 40% of the total unemployed population.  Obama proposed tax credits for hiring workers unemployed for over six months and some government job training programs.  I don’t think either of these will be terribly effective in the short term, however, because companies still lack the confidence to hire, retraining can take months or even years, and the further extension of unemployment benefits will reduce the incentive for the unemployed to seek work/retraining.  Obama also mentioned trying to make it easier for people to refinance, which is a great idea, but from what I can tell, it’s out-of-scope here because it’s probably not going to need to be passed by Congress.

It strikes me as a highly politicized bill.  I think this bill is designed to do four things and I think these things are plain as day when we remember that, as always with Obama, anything he does is about how it helps him get reelected.  First, I view this bill as a handout to several elements of Obama’s base, namely the labor unions (through infrastructure spending) and the teacher unions (though the local and state aid).  Second, the bill is designed to pick off some of the undecided voters (the Social Security tax cut extension for workers and the unemployment benefit extensions for the unemployed).  Third, the bill and the speech were designed to ratchet down expectations.  Fourth, the bill aims to punish Obama’s enemies in two ways.  It raises some taxes on Obama’s economic enemies, like the rich and the oil industry, and in offering a couple things to try to entice some GOP support, he’s trying to paint the GOP into a political corner.  Will it work?  I don’t know.

Even if the speech was about a highly-politicized bill that’s filled with mostly old ideas (and a couple new ones) that probably won’t work very well, at least Obama is actually trying to lead versus sitting on the sidelines like he did during the debt ceiling debacle.  I’m under the impression he’s going to actually try to craft this into a bill for Congress.

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TimABRussell Tim Russell
Brian Williams appears to have handed it off to Rachel Maddow and Chris Matthews. That's my cue to go to bed. #ReaganDebate
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TimABRussell Tim Russell
Brian Williams is right saying there'll be many more discussions. There could be as many as 12 more #GOP primary debates. #ReaganDebate
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TimABRussell Tim Russell
I did not expect the death penalty to come up tonight. The moderators are all over the place. #ReaganDebate
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TimABRussell Tim Russell
Romney calling for the end of dividend, capital gains, and interest taxes and continuing the attack on Big Ben. #ReaganDebate
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TimABRussell Tim Russell
47% of Americans may not pay federal income tax, but they probably pay sales tax and stuff like that. #ReaganDebate
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TimABRussell Tim Russell
Newt's going after Big Ben (Bernanke, not Roethlisberger or the clock) and off-topic, but some interesting points. #ReaganDebate
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TimABRussell Tim Russell
Bachmann mentioning #Obama suspending new EPA regulations. Exactly as I predicted in my blog. :-) #ReaganDebate
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TimABRussell Tim Russell
Huntsman getting grilled on his views of the #GOP , but making good points about trying to broaden the party and win. #ReaganDebate
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TimABRussell Tim Russell
Santorum pounding on #Obama but no mention of leading from behind. #ReaganDebate
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TimABRussell Tim Russell
Pretty much. #ReaganDebate RT: “@sharkbiotech: Ron Paul is a libertian not a republican he doesn't even pretend otherwise”
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TimABRussell Tim Russell
Bachmann hammering #Obama on foreign policy here. She may even mention the War Powers Act. #ReaganDebate
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TimABRussell Tim Russell
Perry gave #Obama some praise for keeping Gitmo open. I didn't expect even that much praise for him. #ReaganDebate
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TimABRussell Tim Russell
Huntsman calling for a pledge to sign no pledges. I love it. #ReaganDebate
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TimABRussell Tim Russell
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@Dan_Dicker We've got many months to do that. It's still early in primary season. :-)
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TimABRussell Tim Russell
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@Dan_Dicker Anybody on the stage at the #ReaganDebate would do better than #Obama as president.
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TimABRussell Tim Russell
Huntsman framing immigration as a human issue and clearly articulating here. #ReaganDebate
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TimABRussell Tim Russell
Newt calls for English as our national language. #ReaganDebate
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TimABRussell Tim Russell
Perry and Mitt talking tough on illegal immigration. Newt is a bit more flexible here, surprisingly. #ReaganDebate
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TimABRussell Tim Russell
Some rare slight praise for #Obama from Newt. That's probably the best he'll hear tonight. #ReaganDebate
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TimABRussell Tim Russell
And Huntsman is back in the mix, too. I bet we won't hear from him again for a good long while. #ReaganDebate
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TimABRussell Tim Russell
Paul certainly can't complain about being ignored tonight. He's getting plenty of speaking time. #ReaganDebate
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TimABRussell Tim Russell
Paul is right about the TSA going way too far in airport security. Unconstitutional. #ReaganDebate
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TimABRussell Tim Russell
Right as I say that, Newt pipes up. Go figure. #ReaganDebate
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TimABRussell Tim Russell
Did the moderators forget Huntsman and Newt are at the #ReaganDebate tonight? They've been mute for a while now.
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TimABRussell Tim Russell
I'm not a doctor, but I think the HPV vaccine is probably good medical practice. Perry countered well here. #ReaganDebate
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TimABRussell Tim Russell
I'd love to see a president show some restraint on executive orders like Paul advocates at the #ReaganDebate tonight.
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TimABRussell Tim Russell
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@adamfeuerstein The #ReaganDebate is pretty lively and better than I thought this early in primary season.
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TimABRussell Tim Russell
Cain mentions the Chilean model for Social Security. It works and should be considered. #ReaganDebate
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TimABRussell Tim Russell
Perry correctly calling Social Security a Ponzi scheme and did well at focusing the topic on young people. #ReaganDebate
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TimABRussell Tim Russell
Yay for a Reagan tribute at the #ReaganDebate and a well-done one at that. And now back to the debate.
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TimABRussell Tim Russell
Paul took that 'gas for a dime' point in an interesting direction. Right to inflation. #ReaganDebate
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TimABRussell Tim Russell
Bachmann is getting rightly nailed on her $2 gas promise, but talking about gas prices surging under Obama is so misleading. #ReaganDebate
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TimABRussell Tim Russell
Santorum strong on welfare, food stamps, and poverty. Perry following up well on it, too. Good JFK quote, too. #ReaganDebate
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TimABRussell Tim Russell
I don't know what Cain is talking about with #Obamacare shrinking HSAs at the #ReaganDebate because the HSA business is booming.
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TimABRussell Tim Russell
Bachmann strong on repealing #Obamacare at the #ReaganDebate versus an executive order. And Newt with a call for #GOP unity against #Obama .
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TimABRussell Tim Russell
Huntsman is effectively straddling Romney and Perry on healthcare. I'm impressed with him so far. #ReaganDebate
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TimABRussell Tim Russell
Romney doing a decent job dodging Obama-Romney-Care, but Perry appears to have taken control here on healthcare. #ReaganDebate
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TimABRussell Tim Russell
#ReaganDebate Paul had a nice libertarian string there. Newt coming out with a good defense of Perry's book being ideas, not a manifesto.
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TimABRussell Tim Russell
Huntsman jabbing both Romney and Perry on job creation results as governor. I'll dig in to see who's really done the best. #ReaganDebate
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TimABRussell Tim Russell
#ReaganDebate Sorry, Santorum, but you won't get Democrat votes by cutting the corporate taxes to zero. Nice start for Cain with 999, too.
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TimABRussell Tim Russell
Everyone's looking dapper tonight at the #ReaganDebate and some spirited discourse between Perry and Romney to start us out.


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ericjackson Eric Jackson
by TimABRussell
Feel bad for Mark Zandi: he's been consistently wrong about economy for 2 years and he hasn't finagled a job working for Obama either
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tdgraff Tom Graff
by TimABRussell
And even @NYTimeskrugman couldn't justify @whitehouse claim that this adds 1-2% to GDP
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tdgraff Tom Graff
by TimABRussell
I'm sorry, but umm... No... “@ezraklein: White house believes this plan would add one to two percentage points to GDP growth next year.”
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TimABRussell Tim Russell
@Barackobama's speech was, as usual, heavy on inspirational rhetoric and light on new ideas. He's still a great speaker, though.
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TimABRussell Tim Russell
@Barackobama forgets that the whole point of the Constitution was to limit what the government can do.
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TimABRussell Tim Russell
@Barackobama forgot that America never stopped being number one.
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TimABRussell Tim Russell
@Barackobama with a good idea regarding refinancing assistance, but several trade agreements have been sitting on his desk for years.
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TimABRussell Tim Russell
@Barackobama is promising the world here. Interesting that he explicitly said this isn't class warfare.
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TimABRussell Tim Russell
Does @Barackobama finally recognize the need for entitlement reform? He's talking as though he does.
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TimABRussell Tim Russell
I like the payroll tax cuts, tax breaks, and focus on the long-term unemployed. @Barackobama
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TimABRussell Tim Russell
Pretty light on details and heavy on rhetoric so far. Par for a @Barackobama speech.
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TimABRussell Tim Russell
I wonder what they say to @Barackobama as he works his way through the crowd. Am I the only one who wonders that?
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TimABRussell Tim Russell
@Barackobama will be speaking shortly, but some kind of "Homeland Security Issue" is being discussed. Scant details thus far.
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BioRunUp BioRunUp
by TimABRussell
Hey man, Obama got the Nobel Peace prize.! If anybody can fix this mess its him! </sarcasm>