The Myths Behind the U.S. Deficit

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Oct. 28 (Bloomberg) -- Bloomberg's Al Hunt discusses the U.S. budget debate and deficits on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Welcome back to "market makers." i am stephanie ruhle.

Here is what we know is true about the buses deficit -- budget deficit.

We should focus on spending and democrats shouldn't agree to any deal involving title i cuts.

-- entitlement cuts.

According to al hunt, all of those things are dead wrong.

Thank god we have you.

They are dead wrong.

It is easy to print a bumper sticker.

It is easy to say no new taxes, don't touch my medicare, the budget is full of rhetoric.

The budget deficit, people say it is worse than never.

It was awful six years ago.

It has gone down every year.

It is less than half of that.

It is still too big but not too big for right now.

It will be a problem five or 10 years from now our biggest problem right now is economic growth and jobs.

Maybe we are getting what we deserve.

Don't touch medicare, don't touch medicaid, and we are voting that way.

If the budget deficit is a disaster, then voters only have themselves to blame.

That's right.

And their elected representatives.

The reason you can't do anything about the budget deficit unless you touch medicare and revenues is the same reason that willie sutton game, what he robbed banks?

He said, that is where the money is.

If you want to seriously address it, you want to do it for or five or 10 years out, not now.

You need to curb entitlement and you need more revenue.

John boehner consistently says that the president has already got his revenues.

Why aren't the democrats as adept at striking back and saying john boehner has gotten his spending cuts?

What's -- there been three dollars of spending cuts for every one dollar of revenues.

The sequester does it in a stupid way.

It is indiscriminate.

It is across the board.

But it has cut spending.

There are better ways to do it.

The politicians know that.

Many of them do.

But the political will is another matter.

Is this an opportunity for the frustrated all additions to actually say, i am getting nothing done with the status quo, why not get bold when i go out on a limb?

Why not say this is the right thing to do?

I spoke to leon panetta and he said it is time for politicians to take risks.

If we had a bunch of leon panetta's in congress, that would happen.

It is not their wishes, it is what perceived as their wishes.

It is the time to be bold.

Last year was the time to be bold.

Boldness seems to be in short supply in washington these days.

Speaking of bold, i know you talk with a top republican.

Let's listen to what he had to say.

I think the first one is to realize the different -- bridge the difference between the house and the senate.

We're about $90 billion apart in terms of discretionary spending.

We have the sequester kicking in.

I think both sides would like to deal with the sequester.

We are willing to put more revenue on the table to do that.

We would like to do it with entitlement savings, but there are also -- is also progress revenue.

Finally, number to me and let the appropriations committees get to work.

That sound like washington speak for, perhaps he is willing to raise debt -- taxes.

Or have see his.

That is the reasonable, rational ball republican approach.

The democrats should be willing to look at medicare and social security because they have to put everything on the table.

Tom cole stands almost alone.

He is on the budget committee, but he has very few other supporters.

You live in washington dc.

I didn't think reasonable or rational were in the zip code where you live.

Al hunt, thank you.

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It has benefited from the growth of the chinese internet market.

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One of the few biggest websites -- bigger websites is facebook.

Baidu's ceo robin li has become friends with mark zuckerberg.

Mark zuckerberg's for stop in china was baidu's headquarters.

Facebook remains blocked in china.

There reports that -- emily joins us now from san francisco.

Tell us about your exclusive interview with the ceo robin li.

This text has been automatically generated. It may not be 100% accurate.


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