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though you know without the main stories we're covering for you this hour president visits to russia south korea items provides anger in japan which claims the far east and territory as its own has warned of serious damage to relations and it has been a source of dispute between the countries since world war two that's prevented them from signing a peace treaty. signed system on the world stop sigmoid nuclear fuel technology that supposed to maximize power and limit pollution rejecting claims it's a waste of time korea said to be the best alternative to rain it could end dependence on fossil fuels. and the economists predict a new trade war between china and the u.s. and washington is trying to bankrupt thinking. americans claim china is an old

today in its currency that's less expense. of course we'll have more on those stories in thirty minutes time and time now though for the latest edition of crosstalk this week picking the balinese guests discuss the electoral hopes of the tea party movement united states that's coming up in just a moment. and you can. hello and welcome to cross talk i'm hearing about as americans go to the polls it would appear that nothing is energized the republican party more than hot tea

partiers or the g.o.p.'s competitive edge in this election will the republicans and the entire body politic later regret this. and you can. discuss the tea party's role in american politics i'm joined by steve lester in new york he's the editor of op ed news in washington we go to phil kerpen he is vice president for policy at americans for prosperity and all and we crossed a preacher brown he's assistant director of university polling institute and another member of our cross talk team yell on the hunger all right gentlemen cross talk rules in effect that means you can jump in anytime you want advice to go to you first even researching this program i came across a phrase someone describing the tea party movement tea is the republican party's cocaine thrilling for the moment but ruinous over time how would you respond to that statement. i think it's absolutely true i mean you know in the short term the tea party is great for the radical right wing part of the republican party you know

people like sharron angle ken buck in colorado carl palatino here in new york but it's been bad for moderate republicans you know people like charlie crist in florida lisa murkowski in alaska because of that it's going to destroy the republican party long term there's no path to fifty percent of the electorate in states and districts for any of these tea party candidates in a normal election year so it's going to ultimately be bad for them but let's face it it's done what organizations like freedom works in american prosperity intended to do with the tea party and that is rebranding a dead republican party image it's done that very successfully you know republicans were only at twenty percent favor ability after the end of the last election so from that standpoint it's been a success but it's going to come back to bite them when you think about that phil i mean because a lot of people would say this is we've seen these movements before this was the way to ditch the bush legacy ok because a lot of these ideas are the same and then you throw in the great recession so it

was just getting rid of bush and a whole lot of funding. well i think that the i think of the tea party is a reaction to out of control growth of government taxes spending and regulation from both major political parties it's a repudiation of the bush years as well as the first couple years of obama and i think that it's hard to say that it's not a long term political winner because it's hard to predict the long term but we do know the short term what's about to happen in this election and that is that there are seats in play all over the country especially in the midwest especially in the northeast especially in the suburbs they were not in play under the old paradigm that said republicans had to move this forward of the center even to the left as possible to compete in these areas and i think it's now becoming clear that if you run and the core fiscal conservative message of limited government you can compete anywhere in the country i think the tea party gives ground troops to fiscal conservatism which used to only exist on the social side on things like guns and abortion and i think that bodes very very well for republicans having the sort of ground president they're going to need to compete in these areas in the mid to long

term as well ok peter brown in orlando so it cuts both ways doesn't it i mean it makes the rich some republicans electable otherwise being branded as a. in the post bush years would have been otherwise and. it actually. divides the republican party at the same time so if this point time you can cut both ways for the republican party well i would i would tend to argue that what we know is we know we know about the short term in the short term you're going to have much more energized republican turnout on tuesday and that's going to help the republicans and to a large degree the tea party folks get some credit for that whether down the road it creates friction within the party or make some point makes the republicans less electable in some places we'll see it's interesting to note however that frankly the matter wing of the republican party has been shrinking for years so the notion that that that they are

a competitive part of the republican party just frankly isn't true. the republican party's future is being able to convince mainstream american voters who voted for ronald reagan who voted for both bushes that the republicans can offer fiscal conservatism in a package that they find acceptable certainly there are parts of the tea party movement that will voters who are more centrist specially in places like the northeast and california but frankly those are pretty much gone for the republican party the republican party's future is between the two coasts and they're the tea party folks are probably helping the republican party ok you know if i'm stephen go back to you being fiscal response fiscally responsible i never get my head around that i mean the bush years were reckless when it came to budgets i mean for goodness sake bush second came into office with surpluses i mean how can the republicans say they take that mantle and how can the we did tea party people say

that's what they want to go to when republicans have traditionally even though people don't like to say it are not maybe no better at being fiscally responsible than the democrats even though the democrats last time they have held office this administration did better. and that's one of the points that we've been trying to make we democrats and liberals since the very beginning of this tea party movement you know how can you make that argument we just got through with eight years of supply side economics we put the bush administration put forth one point three five trillion dollars in tax cuts. the bush administration put forth one point three trillion dollars in tax cuts and it did not create private sector jobs there was no reason to do this every. year the bush administration it could it created five trillion dollars in new deficits and then republicans come through this tea party thing talking about fiscal responsibility it's a joke the whole tea party is a joke you know and they at once people start to really mean. we've just we've just

bought the same thing we just bought the same thing that we didn't like for eight years that made the republican party only likable by twenty percent of the american electorate ok and once people realize that that's what they've bought again they're going to be very upset so you know you guys are probably going to win some sense of this a lot and maybe better enjoy it while the last you know that's the slow down a little bit gentlemen i'm going to go fill first go ahead fill and then we'll go to peter in orlando go ahead bill. look as i said in the opening but apparently some folks weren't listening this is a clear open repudiation a rejection of both bush and obama fiscal policies with the exception of the only genuine supply side thing bush did which were the two thousand and three tax cuts on capital gains and dividends they got investment moving again that was legitimately supply side similarly clinton did the same thing in ninety seven with a capital gain you always an excuse is nobody every time it's all this is about i wanted to hold on x. and no two when you guys said that they were going to do after reagan had all this

great isn't going to tell us because there was nothing else after bush you said i'm so glad i got a twenty percent job there is no. single year that republicans have been in there was no or the reagans i just started and then i donated revolution we got if you want to party though if you have a good record deficit measure they can ring them out here in just a single time you guys have been in power in every single year been in charge of the government and the stories of us have risen to that final point zero credibility to your credibility on fiscal responsibility and i don't mean let me just didn't party grow the republican party destroyed its fiscal brand no question they did not govern its fiscal conservatives george bush doubled the department of education spending went through the roof across the board we didn't follow through on the success of welfare reform in the ninety's you're right but obama and the democrats came in they were in a deep hole and they started digging faster and deeper we ran a one point four trillion dollar deficit last year one point three trillion dollar

deficit this year they want more big government programs more spending that we can't afford they are making it worse republicans claim to have learned their lesson and i hope that they have if they haven't i'll be the first one out there criticizing them but they're the only people promising a return to fiscal discipline right now and that's why they're about to win a landslide right peter brown in orlando finally returned. thank you look this is about an election obama got elected in two thousand and eight because americans didn't like what they had which was george bush and arguably fit fiscal irresponsibility among other things you have to remember there was an unpopular war and some other things too this year americans are unhappy about the economy now fairly or unfairly they're beginning to blame barack obama for so that the notion of fiscal responsibility is the coin of the realm in two thousand and ten whether will continue to be the case or not we don't know what we do know is that the

democrats and president obama certainly had an incredible opportunity in two thousand and nine to form a lasting coalition it is not lasted two years later by all accounts our polls everybody else's polls this can be a very republican year now what happens after this we can tell on wednesday morning the two thousand and twelve presidential campaign starts it will get very hot it will get very heavy and the environment that is forward on will determine what happens if the economy gets better mr obama will be in much better shape if it doesn't he won't be tea party people are essentially fiscal conservatives and those that previously had voted and been accurate have been members of the republican coalition what they have done apparently and we'll find out on tuesday that there is energized one is we're not just want to go to have to jump in go ahead go ahead you know. you talked about an opportunity for the obama administration let's not

forget what sort of opportunity that that was the economy was in an absolute shambles ok it was go it was falling off the table people were talking about a new depression unemployment was heading towards ten percent i mean let's be completely fair that's not the most exciting opportunity as far as i'm concerned you know just stabilizing the economy you know it was a bigger compliment and what we have is is you know the tea party made to the american james and i really don't know ten against somebody who rescued who rescued who rescued the economy from falling off a cliff you know and so we have to be completely fair and honest about exactly what kind of an opportunity that was ok we have when we're on whether it's a good opportunity a bad opportunity it was an opportunity and and you know look i'm not here to argue whether one policy or another is right my my stick is politics and what and what is very clear is they had an opportunity whether it was fair and fair opportunity not you guys can argue to the cows come home but they had an opportunity they're going

to they're going to get beat badly on tuesday and then on wednesday morning it starts all over again and we'll see what happens in two thousand and twelve. ok we're going to go i think the critical question go ahead real quick then we're going to go to a break go ahead i think the critical question is whether obama can learn the lesson that clinton did in ninety four move to the center and be a popular centrist pro growth president do things like welfare reform free trade spending cuts and tax cuts if he can do those things i think he will get reelected will be a great thing for the country if he continues his far left agenda i think is going to going to jump in here we go to a short break and when we return we'll continue our discussion on the tea party movement in the u.s. stay with. me.

so. the cell phones would be useless without this mineral. tiny pieces needed to make. a piece of culture and is extracted at a cost to human life. wealthy british scientists are. trying to explain to the. market why not. find out what's really happening to the global economy

with mike stronger for a no holds barred look at the global financial headlines tune in to conjure reports . that. if you want to. welcome back to cross talk time here a little remind you we're talking about the u.s. political landscape. but before let's see what russians think about the u.s. the tea party emerged in early two thousand and nine as a potential important force in american politics and looks set to dominate headlines at the upcoming u.s. midterm elections tea party supporters typically are hard line republicans so it revives grassroots politics advocates limited government and a strict interpretation of the constitution all of the opposition to the tea party

is so it's potential racism and even closet fascism eamonn aid thing probably the movement that this polarization has taken place on the barack obama's presidency shows how strongly americans feel about the direction of their conflict take the russian public opinion research center all citizens to gauge the attitude towards the united states fifty nine percent of the respondents said they have a positive attitude. twenty seven percent expressed more negative feelings yet two years ago statistics were viceversa with sixty five percent negative towards the united states the question remains if midterm results will bring about another ship . hi jim another kind of shift gears here phil there's a lot of criticism of the tea party movement because of its backers who is funding it a lot of people say the koch brothers are there over one hundred million dollars been

poured into various groups we have murdoch is in his entire empire i think it's fair to say promoting the tea party movement i mean again you know they give you the sense that you know they were told this is a spontaneous populist movement but it in others will say it's a very highly controlled very expensive campaign just to destroy the obama presidency well look david koch is the chairman of my board and i think he's a great man who's done a lot of good both as for line three and his business activities but i think that the left is a little bit crazy if they think that folks like him and other major donors were able to create this conservative donors have been building institutions and organizations like mine and others for decades and we've never seen anything like this before this is something that only could happen when thousands of people decided that they wanted to be calm volunteers and organizers and leaders it is a genuine social movement this couldn't be manufactured if we tried and you know

anyone who goes to the events and talks to the people and really studies this from you know and doesn't have a political agenda to say otherwise i think would agree that this is a genuine social movement when you think about that steve. well you know i think i think that folks from americans for prosperity like phil and freedom works i think what they really would love to do is take credit for this i mean they won't say it out loud but you know it's like when when when somebody has perpetrated some so i would never take credit they really want to take credit for it and really and really you know that's what that's what we have here you know the tea party is really deception at its core its deception that it's some sort of new thing outside of the republican party it's deceptive that there were some sort of new ideas coming forth here and you know it really it was a minister piece of work by these republican think tanks you know you had a dead as i mentioned earlier a dead republican brand at the end of two thousand and eight and they started reviving it almost immediately through this tea party and now just think about that

at the beginning of the movement they said it had nothing to do with the republican party and now look what we have in the election we have an election where the tea party is one hundred percent behind republican candidates you know so the deception is really revealed here this was absolutely the right this is the republican i was going to bring a lot of the tea party ideas the tea the republicans wisely embraced a lot of the ideas the parties some democratic candidates are doing the same but i mean you know that's the reason i think that tea partiers are supporting republicans it's not some plot you have it but feel the i mean this money almost almost democratic candidate for yes exactly i mean almost all of the money has been given to the republicans and republican candidates that is not the case i mean if it's if this is just a nonpartisan then why haven't the democrats been given any of that money and support i mean there are moderate democrats out there. well i mean these are new it is you know after all when it got the wall when it got the indoor evolvement it got the endorsement of the tea party express he's

a democrat from idaho i know that you know there have been there have been some races where tea party people have split i know that gene taylor's district in mississippi. a lot of the activists have been split there are some conservatives who want to support him down there because of many of his conservative votes i think though that it's been very difficult for democrats to get away from the high level branding of their party when they've got obama and pelosi and reid and you know there are about twenty or twenty five democrats now are pretty openly campaigning against nancy pelosi in order to get reelected there even folks who promised not to vote for speaker most recently heath shuler from north carolina so democrats are trying to move towards where the tea party people are but it's very difficult when you've been voting for these things and when your leadership has been sort of the the focus of the anger from all these folks so i think it's the issues that people are concerned about that make it hard for democrats to appeal to them but that doesn't mean that the tea party people are genuinely concerned about issues they are ok peter and you want to jump in there in orlando go ahead. well i

mean the notion that they're not a partisan movement is ridiculous they're just before it's only republican but so what i mean the notion that they're being funded by a conservative backer you know how how much that plays really doesn't matter what matters is how the votes come out and you can argue that they're getting money from this guy or that guy well you know obama shattered fundraising numbers in two thousand and eight and got money from all over the place it doesn't matter what matters is who shows up and who votes well and that's really what we're seeing on here on an election ok but steve in the good go to you i mean here is a i don't just i well i was just going to say is that a lot of the tea partiers talk about they want deregulation they don't want any regulation ok and i would think the koch brothers don't want any regulation too because they want to keep all of their money and get richer and richer and richer but the fact of the matter is them because of a lot of deregulation we had a financial crash now i mean how can the party movement like this we have

a presidential crash because we had a monetary bubble oh yeah what happened on wall street was it was the lack of regulation not because of break you ation for goodness sake i mean only it was because one had a monetary bubble the fed kept rates way too long for way way too low for way too long ok that money had to go somewhere you had a classic bubble ok ok all right but you had a lot of people on wall street that went through it just fine got peter you know ahead go ahead go ahead steve. peter i mean you know look there's always excuses for why it's not actually a lack of regulation that caused all kind of sorts of things from the tea party folks you know i don't disagree with peter's earlier comment that it who cares you know really who's funding it i just want some transparency and why the tea party was created you know and who it was designed to serve from the very beginning if we had honesty about that i wouldn't care about any other topic and i saw a lot of them going to have this election no one will say it people say it doesn't matter people say it doesn't matter but i think it does matter and i think that's

really what people are going to be talking about after this election i can't wait for the tea party elected candidates to have to put up or shut up that is my consolation at this. point i'm going to. they're going to be absolutely they're going to be they're going to be the absolute gift that keeps on giving these tea party elected let me ask you a question do you think do you think ok go ahead but i want to i want to talk about what let's imagine what it's like when they're in power go ahead do you want to finish up well i want to address the regulation point briefly because i think that's going to be really the key locus of policy fights over the next couple of years because i think the obama administration is going to move all of its extreme left wing ambitions inside the executive branch push its global warming agenda e.p.a. broadcast and internet regulations that f.c.c. the union agenda and ellerby and so on according to the obama administration's own numbers at the all at the small business administration office of advocacy the compliance costs the federal regulation this year one point seven five trillion

dollars that cost is significantly greater than the cost of direct taxes moreover the costs for small businesses that obama claims to champion of compliance with federal regulations are now ten thousand five hundred dollars per employee per year we've got to get that cost down we cannot continue to pile more and more regulation on that is a common sense position that the vast majority of americans i think would agree with that is not some radical idea and the idea that donors are self interested i think is. a little bit ridiculous especially when you're talking at the level of billionaires whose life will not change in any way they're ideologically motivated like anyone else they believe in the political ideas of limited government or free markets and that's why they support groups like mine peter you want to say something there go ahead and i again i'm not a policy guy i'm a political guy i can tell you why things are happening in elections this is an electorate that has really been unhappy with think what has happened in the last two years now you can say it's not fair to obama they inherited

a bad economy or not but it doesn't matter it's their voters overwhelmingly on virtually every poll are unhappy with the national health care plan the white house said well once it was in the past people get to like it more we're not seeing it and in a lot of states this year again especially between the two coasts you're seeing voters who think that they have bombing ministration passed legislation that is bad for them and they don't like it and that's why you're seeing this populist uprising now again it may all change by two thousand and twelve americans vote against things in people more than they vote for things and people and what happens over the next two years will tell us what they do in two thousand and twelve ok steve let's have a hypothetical let's say the seventy or so high profile tea party candidates they win which is assume they win are they going to cave into power you know only the appetite comes with eating or do you think that this was just an electoral vehicle

just to get republicans and into into power what your prediction. well i mean it was it was a vehicle just to get republicans into power however i happen to believe that the republicans who got elected this year are not going to compromise on any issue they've as much as said it on national television again and again i think that's going to produce a very interesting conflict between the legislative and executive branch the last time that we had something like that after one thousand nine hundred sixty didn't fare so well for the republican party i expect more of the same here after two thousand and ten and that's one of the reasons that you know in a small way i'm looking forward to the aftermath of this election i think the like i said the american people are going to expect this new congress to put up or shut up and i don't think the tea partiers are going to be quite as good at governing as they have been at at attaining all right gentlemen run out of time and we'll find out after the election many thanks to my gets to new york washington and orlando and thanks to our viewers for watching if you are to see you next time remember.

right. from the still fresh. start don't.