First question from Fox News anhor Brett Baier is about how to grow the nation’s economy. Michele Bachmann comes out firing, says “we should not have raised the debt ceiling.” Points to the camera, and says President Obama is finished and “will be a one-term President!”

Next, Romney. He says Obama has done the opposite of what should be done to grow the economy. Romney calls for lowering corporate tax rates and de-regulation, better trade and energy policies. Finishes with a flourish by saying government should not overspend, and that he will cut spending if he is elected.

Baier asks Romney about his position on what the proper role and size of government should be. Romney responds by saying he took pledge to support raising the debt limit, but only if Cut Cap and Balance (GOP deficit plan) was passed. Says if he was President right now, he’d have already cut spending by a substantial amount.

Ron Paul is asked next about how to manage the economy. Paul says the cuts agreed to by both parties in the debt limit deal are phony — says Congress should reform tax code, reduce regulations…..Baier asks Paul how to balance budget through divided Congress, Paul pauses, says yes, that would be difficult

Next, Cain is asked the same question — calls for making tax breaks permanent, eliminate capital gains tax — says that would create certainty for businesses. Says Obama needs to get economy going in the next 90 days.

Baier turns to Huntsman and asks where his plan is to restore the economy. Huntsman alludes to his time as Governor as Utah. Touts his free-market solutions, says he created “most business-friendly environment in the country.”

Gingrich is asked what makes him qualified to grow economy and create jobs. The former House Speaker says cutting taxes is key — notes that Congress, duing his time as Speaker, cut taxes and passed historic welfare reform at a time when Congress was divided (similar to now).

Baier asks Pawlenty if his economic/jobs plan is “pie in the sky.” Pawlenty encourages voters to read his plan, says they’ll support it. Next, T-Paw criticizes Obama for having no plans to deal with entitlements, challenges audience to find Obama’s plan, says if they find it, “I’ll come to your house and cook you dinner…or if you prefer, I’ll come to your house and mow your lawn.” Audience goes nuts.

Santorum goes next, says he’s focused on growing manufacturing sector. Also touts the fact that he’s canvassed the state of Iowa in the last month, talking to anyone and everyone in the Hawkeye State. Calls for eliminating corporate tax rate — “cut that rate to zero, our jobs will come back!” he says.

Baier turns the next round of cross-examination over to Fox News colleague Chris Wallace — his first question goes to Pawlenty, asks him whether Bachmann is blowing smoke or beating him in the polls.

Pawlenty blows perfect opportunity to trash Bachmann, gives vague response about what kind of record it’s gonna take to beat Obama next year.

Wallace next gives Bachmann a chance to go after Pawlenty……she does. Criticizes him for supporting cap-and-trade as Governor of Minnesota, and sounding like Obama in terms of policies he supported. Bachmann 1, Pawlenty 0. Bachmann continues, says Pawlenty also pushed gov’t healthcare on Minnesotans, whereas she is fighting to repeal Obama’s healthcare law. “people are looking for a champion,” she says. Bachmann is really trying to position herself.

Wait a minute, here comes Pawlenty firing back. “That’s not what she said when I was Governor.” Challenges her record on results.

Bachmann’s response — repeats how she fought passage of healthcare law, cap-and-trade bill passed by Pelosi-led House.

Wallace next turns to Romney, cites his record as head of Bain Capital, where he oversaw massive layoffs. Asks Romney, “you’re gonna be the jobs President?”

Romney’s response — business doesn’t always go well, but says he learned from experience how to minimize job loss. “I understand how business works,” he says. Adds that he and Cain are the only qualified candidates with business experience.

And we’ve reached our first commercial break of the night. Stay tuned…..

Uh-oh, Wallace’s first question out of the break is to Gingrich about what he has to say about nearly all of his entire campaign staff quitting a few weeks ago.

Gingrich says that happened to Reagan and John McCain before him. Says he’s more concerned about running on ideas, including repealing Dodd-Frank financial reform and helping grow manufacturing sector. No more “Mickey Mouse games,” he says.

Wallace defends the press’ right to cover that story.

Next, Wallace asks Huntsman about certain things he’s supported that make him look like an Obama supporter (more stimulus, cap-and-trade).

Huntsman says “if you love your country, you serve her.” Says he didn’t want more stimulus spending, but more tax cuts within stimulus plan. “I’m running on my record and I’m proud to run on my record,” he says.”

Wallace asks Cain about his comments on being supportive of communities banning Mosques, and about his lack of knowledge on other issues.

Cain responds, “you want me to answer all of those questions in one minute?” Says his Mosque comments were misinterpreted, points to a press release with the facts on his website. On Afghanistan, Cain says there are three problems there, but he runs out of time to explain them.

Susan Ferrechio from the Washington Examiner gets the mic. She asks Huntsman about citizenship for illegal immigrants — Hunstman laments “patchwork of solutions” on the issue, says he’ll make it a priority to secure the U.S./Mexico border. Says “secure the border” at least three times in his response.

Romney is next asked about bringing in skilled workers to the U.S.. He says America “is a nation of immigrants.” “We love LEGAL immigrants,” he says, hoping to clarify his answer. Says securing the southern border should be a priority.

Cain says “America’s gotta learn how to take a joke,” in response to question about his immigration policy. Says no new pathway for citizenship for illegals. Sums up his stance — “we can have high fences and wide open doors at the same time.”

Gingrich says Obama has failed on immigration reform. Says Gingrich would move DHS bureaucrats to the southern border.

Ron Paul is asked why he opposes e-Verify program for employers. Paul says the government shouldn’t punish businesses for helping immigrants earn wages. Paul calls for bringing troops home from overseas and maybe putting them on the border. Says no entitlements for illegal immigrants, and no mandates on the states to do so.

Ferrechio passes baton to Byron York, also with the Washington Examiner. York’s first question is to Romney — asks him whether raising taxes is sometimes necessary. Romney says no. Says he balanced budget every year he was Governor, says it earned his state a credit upgrade.

York asks Pawlenty about levying a tax on cigarettes when he ran Minnesota. Pawlenty points to his rating on taxes, which CATO Institute says is very good. Says he regretted cigarette tax because the state didn’t even need it to get a balanced budget. Pawlenty calls on Obama to cancel his upcoming vacation and order Congress back to DC to work on economy.

York asks Bachmann about her record on taxes. She attacks Pawlenty for voting to increase cigarette tax and challenges his record on abortion (which she opposes). T-Paw hits back and says his record is great.

Bachmann says she stands firm on her convictions, hints that other candidates (T-Paw) do not. Pawlenty says Bachmann actually voted for tax hikes and against the pro-life bloc.

Next up is Rick Santorum — York asks him about his preferred ratio of spending cuts to tax hikes as a means of cutting the nation’s deficit. Santorum says the problem is govt spending, not taxes. Says growing the economy will boost revenues, and he has a plan to do that. Also says he knows how to compromise — points to his negotiating with Democrats on welfare reform when he served in the US Senate.

Baier asks all the candidates, which of them would walk away from a deficit cutting deal that featured a 10:1 ratio of cuts to tax hikes. Gingrich fires back and says the new “super-committee” is a terrible idea. “Get rid of this secret, phony business,” he says. Gets loud applause.

Wallace gets to ask candidates about healthcare. Pawlenty is asked about his comparing Romney and Obama’s healthcare plans (“Obamneycare”).

Pawlenty says Obamacare was modeled after Romney’s plan as Governor of Massachusetts. Says Romney and Obama are similar in other ways — particularly high government spending and judicial selections.

Romney gets chance to respond — “I think I liked Tim’s response in the last debate better,” he jokes. Says it’s not fair to compare his and Obama’s healthcare law, says his plan was right for Massachusetts, while Obama’s law takes a one-size-fits-all approach for the whole nation. Says if he is elected, he’ll order HHS to grant individual waivers from the law.

Wallace asks Romney whether his state healthcare law was constitutional. Romney says it was, but Obama’s national law is not. Says healthcare should be a matter left to the states.

Wallace asks Bachmann what’s the difference between states and government mandating health insurance coverage. She says there is no difference (dig at Romney). Says she won’t rest until “Obamacare” is repealed. Notes that it will require getting filibuster-proof GOP majority in the Senate.

Ron Paul says Constitution does not allow federal government to take over healthcare system, says mandates drive wedge between doctors and patients. Promotes health savings accounts for individuals.

Santorum asked to weigh in — Calls Obamacare “the 10th Amendment run amock.” Says he’s not OK with allowing states to do anything they want. What if some states want to legalize polygomy?” he asks. Gets a hearty round of applause when he finishes his response.

And that’s it for the first hour, folks. Stay with me for hour number two!

Here we go, lightning round:

Baier asks candidates if Rick Perry is outsmarting them by not participating in Iowa this weekend. Paul says no. Cain says “welcome to the contest,” but adds that Perry’s presence doesn’t bother him. Huntsman says he hopes Perry contributes solutions to growing economy.

Baier asks Bachmann about Sarah Palin. Bachmann says there is room in the race for both Palin and Perry. Gingrich agrees, adds Giuliani’s name to that list.

Baier now switches topic to Afghanistan, mentions the deaths of five more US troops today. Pawlenty goes first, asks audience to remember those troops who have died in the war. T-Paw calls on Obama to listen to Gen. Petraeus’ recommendations on drawing down troops, criticizes Obama for making drawdowns based around his reelection campaign.

Baier asks Romney about his seemingly conflicting remarks on Afghanistan. Romney says it’s simple, the US has to train Afghan forces, but should eventually turn the lead over to them in a matter of a few years. Romney also calls on Obama to listen to his commanders there.

Gingrich asked about what he would’ve done about Gaddafi in Libya (Gingrich originally said he would not have intervened.) Gingrich accuses Baier of misrepresenting his remarks. Gets applause. Gingrich says US must re-think all of its fights in that region of the world. Sort of an unexpectedly vague response there.

Huntsman says he’d consider cyber-attacks to be acts of war against US. Huntsman flexes his national security knowledge, and knowledge of US-Sino relations. “We’re gonna have to deal with the Chinese, we better get it right.” Says the next President should know something about China (aka pick me!)

Wallace to Pawlenty: How do you feel about using unilateral action against Iran. Pawlenty calls for a thick approach to dealing with Iran’s possible nuclear intentions. Next, he bashes Obama for being soft against Syria, and not being committed enough to Israel. Gets applause.

Ron Paul asked about US policy toward Iran. Paul says CIA tells him that we have no evidence that Iran is building a bomb. Says it’s natural that Iran wants a nuke. “What’s so bad about this?” Paul calls on US leaders to stay out of Iran’s affairs. Wallace asks Paul to clarify. Paul says US tolerated Soviets having a bomb(s), why not take the same stance toward Iran? Also says it’s time to end US trade embargo on Cuba. “It’s time to stop fighting these wars that are 30, 40 years old,” he says.

Santorum takes issue with that. “Iran is not Iceland, Ron.” Says Iran is the main threat to Israel. Paul responds that the US got into trouble with Iran back in the 70’s because “we just didn’t mind our own business.” Paulistas in attendance go wild.

Wallace turns to Cain, asks for his opinion on Iran. Cain says Iran’s leaders are our enemies and won’t listen to what the rest of the world wants from them. Calls on leaders to make the US energy independent, says it will hurt Iran the most. (Applause)

Wallace asks Bachmann about Gitmo. Bachmann says foreign terrorists should not be read their Miranda rights. Calls Gitmo a tool to prosecute the “new” war on terror. Turning to Iran, she hints that she has classified intel that Iran is developing a nuke. Paul responds to Gitmo, says it’s the rule of law that trials should be awarded to alleged terrorists.

Wallace asks Santorum whether Paul and US AG Eric Holder are on drugs over their stance on Gitmo. Santorum says he doesn’t apologize for his views that Iran’s leaders are oppressive and are sponsors of terrorism. “When Rick Santorum is President, Iran will not get a nuclear weapon.” Paul calls Santorum’s comments “war propoganda.” Argues that Iran is not a major threat to the US right now. Adds that Iraq was not a major threat either. Gets really fired up over “trillions of dollars that we’re spending on these wars!”

Time for a break, social issues coming up after the commercials.

Byron York asks Newt Gingrich if he’d compare American Muslims to Nazis. Gingrich says there is nothing wrong with making sure that US government employees are in fact, loyal to the US. Cites the fact that there were communist spies at one point living and working in US.

York to Cain: Why do some people object to Mormonism? Cain says people in Atlanta, where he’s from, are somewhat skepitcal on Mormons, but he doesn’t go as far as to say that he objects to Mormons. Adds that his religious views have not hurt his campaign. Says he is a sound Constitutionalist.

York asks Bachmann about whether she would be submissive to her husband if she were elected President. Bachmann saracastically thanks him for the question. She defines submission as respect, says she and her husband, Marcus, respect each other. Tough qustion to answer, if you ask me.

York asks Romney about gay marriage, and whether state lawmakers should have the right to legalize gay marriage. Romney says he thinks marriage law should be left to the feds. Calls for constitutional amendment defining marriage at the federal level as being between a man and a woman.

York asks Huntsman why he is right about his record on marriage (he supports civil unions). Huntsman says the issue is really about equality (gets light applause). But, he says, the other candidates are not wrong (hmmmmm), says the US has not done good enough job on equality issues.

York asks Paul about leaving marriage to the states. Paul says marriage should be between man and woman, no federal government involvement, states should deal with the issue if they need to. Paul takes it a step further, asks why the need for marriage licenses? (as someone who is about to get married, and will have to pay for a license myself, I kinda agree. Sorry, back to blogging)

Bachmann wants constitutional amendment defining marrage as being between man and woman.

York asks Santorum about his stance that abortion doctors should be tried in court. Santorum defends his pro-life stance, says he’s absolutely against abortion (no surprise there).

Pawlenty asked whether there are any exceptions to abortion. He responds that he is the most pro-life candidate in the race. Touts pro-life legislation he signed as Governor of Minn. Only exception, he says, would be if life of mother is in danger. Said he’d sign pro-life bills if he becomes President, says he wants to eliminate abortions, and that there should be legal consequences for abortion doctors (not for the women who receive them).

Baier turns questions over to Ferrechio, who asks Romney about unemployment benefits. Romney calls for reforming system, wants to cut down on waste and fraud and make it more accountable. Calls for specific UI accounts for people.

Ferrechio asks Huntsman about his record creating jobs abroad, and not in the US. Huntsman says he’s proud of his record, says his company is family owned and operated. Says Obama regulations — particularly EPA regs — are costing US workers jobs. Calls for reg reform. Might have lost a point by glancing at his notes on his podium…..

Bachmann asked about her position on not raising debt limit. Bachmann stands by it, says Congress didn’t cut enough spending in exchange for raising the debt limit. She says no more borrowing and spending. Bachmann interprets S&P downgrade decision as evidence that markets wanted Congress to cut spending, which they did not do enough of.

Cain agrees that the debt ceiling should not have been raised. Says Congress should have cut federal agencies and programs instead.

Ferrechio asked Cain about his support of cutting corporate tax rates. Cain says it’ll work this time around (US tried it in early 2000’s), if Congress makes the tax cuts permanent. Cain says if a company wants to please its shareholders and pay out huge dividens, then so be it. (Applause). Says he’s about growth.

Ferrechio asks Gingrich about his position on the Federal Reserve. Gingrich says keep the Fed, but calls for full-scale audit of the agency, wants to know who the Fed bailed out. Says the Fed’s monetary policy since mid-90’s has contributed to economic decline. (gets big applause).

Paul says Gingrich isn’t wrong to want to save Fed, but he wants more transparency.

Santorum asked how he is able to categorize himself as a Tea Partier. Santorum pivots to debt ceiling debate. Says Bachmann and Paul failed to lead on the issue. Says US should aim for balanced budget. Says what Congress has done so far is “showmanship, not leadership.”

One last break and its on to a brief, final round of questions.

Huntsman asked about “No Child Left Behind.” He calls for reform. Pivots to debt limit debate and criticizes folks who called for letting US default, applauds Boehner’s efforts to get a deal.

Cain blasts NCLB, calls it an unfunded mandate, says federal government should get out of the education sector.

Now, its time for final words. Santorum starts by giving Iowans a shout-out. Says he’s not being paid a lot of attention to, but he’s giving Iowans a lot of his attention.

Cain says America needs a leader, and he’s the guy to do it.

Ron Paul says liberty does not come from government. Calls for ending wars reforming monetary system, and wide-scale deregulation.

Romney (surprised he’s not picked to go last here) says US has an economic crisis and blasts Obama’s handling of it. Positions himself as the anti-Obama who can get the economy going.

Bachmann next. She calls on Iowans to vote against Obama next year.

Pawlenty’s turn. Says leaders must protect US freedom. Says he’s the man for the job.

Huntsman follows up by calling the nation’s debt a “cancer.” Says he’s gonna win in 2012 on solutions.

Gingrich pulls an Obama, tells voters to call their elected officials and demand leadership.

Folks, that’s a wrap! Goodnight from Ames, Iowa.