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Debt Talks Unwinding?

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  • Description

    FBN’s Stuart Varney breaks down the latest developments in the efforts to raise the debt ceiling.

  • Duration 6:22
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This transcript is automatically generated

The -- good morning -- -- -- -- start with this question.

How real is this question which is very real and it was actually ratcheted up just -- not auction this morning.

Let me repeat what date and told you -- that standard and policies of the ratings guys that sign look.

You America you miss even one check.

And you -- going to be downgraded would get a take you'll financial reputation down if you missed -- -- -- -- after -- -- the second.

Now that's a very serious thing to downgrade or for anybody real anything to yes that's what stand -- -- -- and I'm quoting directive from the Wall Street Journal that's what they've -- -- that from -- this morning.

Now that is over and above the warning that they all the guys Moody's launched into yesterday so -- ratcheted up the Prussia.

You really got to get a deal or else that's where we stand her so how real do you think about.

But -- -- that abandons.

There every -- after -- the second.

We've got X amount of money flowing into the treasury in the month of all about a 172 billion dollars.

And we've got 309307.

Billion disposed to flow out so you got a huge gap.

Between what you got coming in on what you've got going out and you cannot borrow the difference so somebody.

Asked to get short changed somebody -- to -- that check.

Now we've got enough to -- Social Security we've got enough to public interest on the debt.

Pay the troops pay the soldiers' pay Medicare we've got enough to cover all of that but we don't have enough to cover defence contractors IRS refunds.

Food stamps unemployment benefits education spending something's gotta give after all this the second if we don't stop until -- be allow -- to borrow some more money.

Not gentle and aren't aren't gonna survive not a says -- what's -- this is a situation.

Where you can get the exact same information from and it and we shouldn't.

You're just as exact same information from Connell -- -- -- But you get -- from Barney and because of his accent in his manner.

And his so it is a -- and tossed it just sounds more.

General and and as and riddled -- -- indeed Southland authoritative and ended probably is not Nikkei could say anything to -- Policies weren't what are Charles Payne -- can.

I think that's incredible close dopey guy at the bubble.

Understood bills aren't start with the Republicans.

What does that what will -- take for the Republicans to agreed to make a deal.

Look the Republicans cannot go in to any negotiation.

Expecting a tax increase.

Because of tax increase will not pass the house so if they get a deal -- negotiate -- -- a deal and it comes back to the House of Representatives without a kind of tax increase in its.

It's not gonna be passed.

John Boehner knows that Eric -- and those that and I'm gonna happen so from the Republican's point of view it's got to be spending -- and frankly I agree with.

It is this president it is President Obama who has spent us into this mess.

With the stimulus plan a record government spending expanding Medicaid expanding unemployment benefits.

We are in -- spending mess we should not be raising taxes.

At a time when -- column is going into the tank.

That's -- -- the Republicans consider cutting.

Subsidies to oil company and in closing -- Pulte corporation today consider those of France tax increases I think that.

Is on the table.

Because all the Republicans really object to is at an income tax rate increase rate increases or what they really -- -- I I believe that may be they would go along with some of the so -- loophole closing and they would certainly.

Go along with selling some government property.

That's a revenue race nothing to do with taxes I think -- go along with that torture and our politics from the Democrats present.

America bill.

I think the pressure is on the president to make a deal.

The other night with Scott Kelly on CBS he went out there and said look I can guarantee that we gonna get -- Social Security checks.

That was a direct threat directly pressuring C -- I've said publicly -- that was disgraceful.

Now bearing in mind -- standard and -- citing that single if you missed any check.

And you're gonna default.

That means President Obama is in the position if he doesn't get a deal.

And he should get a deal if he doesn't he would be the first president in American history to preside over a default.

And the first president since 1917.

To preside over eight downgrade.

I don't think he wants to be in that position regardless of who we -- -- is the pressure is on him get out that cut spending get a deal.

-- outsource my next question who gets the blame for -- but the wheels come off.

Well the president will be trying to blame the Republicans -- the Republicans will be trying to blame the president that's the game that that plane that's the name of the guy.

So some estimating a little bit as though.

Not only as the GOP willing to risk chaos to make a point.

But sort of as a present -- for -- to -- buffer in order to buy Opel and Baltic.

I'd I'd I don't know I wouldn't get -- used the would bluffing.

Pace horrible hard core negotiating tactics it'll go right up the -- but remember the -- is getting closer and closer forget -- -- the second.

You've got to think more about July 22 or July 19 because.

Any deal has to be legislated.

Any legislation has to be written and passed you running out of time to do that so the why is getting really really close that's why you got guys losing that Tampa pushing back from the table and say now Austria.

Sort disorder you're -- gut feeling.

On -- won't happen.

Yes I gotta gotta -- ago that will be a deal -- soon and I I would not be surprised if it wasn't the McConnell plant.

Which gets around the problem of default.

And put state -- of extra spending squarely on the president when it belongs blossoms.

Grey wolf thank you very much for -- probably aren't going to be on fox and changed so -- were up anyway.

But thank you for apparent on the program is great -- really was no thanks -- operations are -- great information and parting company come -- -- and twenty minutes after.

9 AM eastern time.

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