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The GOP doesn't want tax hikes in any debt deal and Democrats just wanna raise the debt ceiling with no strings attached.
But even a deal to raise the debt ceiling without major spending cuts could result in credit agencies lowering the United States government's bond rating.
What kind of a debt deal would even make them happy joining me now is American conservative magazine columnist Jack Carter Jack welcome back to freedom watch.
Good to be -- judge He before we get into the the debt rating agencies and what they're looking for before they advise.
Investors whether or not to buy bonds from that treasury stated differently the loan money.
To the federal government what is your take on the harsh criticism.
Being leveled now -- the Tea Party and others bold government.
Republicans in the congress by the White House and the Democrats referring to them as pathetic referring to them that's crazy saying it -- they or preventing the government from progressing.
Meaning borrowing and spending more money.
Not only is the GOP in the Tea Party not crazy this is the first time in a long time the Republican Party is actually becoming the party of limited government.
-- both its critics and supporters of perceived that debate I wrote a column the American conservative judge called.
The GOP goes tiger there's a funny skit by comedian Chris Rock he's talking about -- -- unfortunate -- years ago.
By a train tiger on the magician do 06 treated Roy we all remember that.
-- people said that tiger went crazy -- Chris Rock said no that tiger went tiger you're -- the Republican Party finally becoming the Republican Party.
If people think it stood for when it was Barry Goldwater's.
Republican Party -- -- Ronald Reagan's Republican Party at the big difference and it's a wonderful turn of events -- But the Republican parties but schizophrenic three years firm for generations for decades we know that it was Barry Goldwater against Nelson Rockefeller.
It was Ronald Reagan against George H.
It was George W.
Bush against those few small.
Govern -- Maximum individual libertarian maximum individual liberty libertarians that were in the congress at that time.
Today I think it is.
The Tea Party folks Ron Paul Gary Johnson Connie -- those folks against the big government Republicans John Boehner.
Mitch McConnell who's gonna win this time out.
Well I think the Tea Party is going to win and the reason that it speaker Boehner is acting the way He is -- he's -- his feet Irving -- held to the fire for change.
You know the Republican Party as I said is supposed to be the party of limited government.
And as you just pointed out judge how often has that been true was a true under either bush was a true as far back as Richard Nixon.
Absolutely not it's finally flushing out.
Is that small government constitutional as party.
We all think it should be at how this debate plays -- -- Capitol Hill will show the strength of the Tea Party we hope we should help but remain strong at least as conservatives or libertarians.
Even Ronald Reagan raise the debt ceiling eighteen times or ask that it be raised and got -- requests -- responded to was He wished.
By the congress eighteen times while president but in doing so.
Managed to get promises from democratic leaders in congress.
That they would send him budgets because He does have a line item veto either except -- rejects -- as a whole which called for less spending being lied to him that.
Is there any reason to expect that the Democrats in the senate and even in the house who would make a similar promise to Republicans.
Would not -- today.
Well you're exactly right and you had Mike Lee -- your last segment talking about the need for a balanced budget amendment.
He is absolutely right the Democrats in the 1980s promised two dollars.
And spending cuts for every dollar in revenue raised in regular accepted that promise of course it never happened.
What the Republicans are asking for now is the same sort of deal but this time and riding that's what a balanced budget amendment is all about it doesn't surprise me one bit they.
The Harry Reid the democrats' table that the senate.
Does it trouble you that the bond rating of the Treasury Department.
Would go down if it doesn't appear as though there is such a deal in the works that they professional rating agencies.
Would say to investors it's going of course -- a little bit more risk.
Therefore you have to demand a little bit more in interest payments if you loan money to the government is that a good thing or a bad thing at the bottom rating agencies do that.
But that's something that should be taken into consideration just like what it was brought up last time abetted debt -- -- in the next time after this in the next time after this.
Aren't they going to say that every single time judge.
All the experts the economists think we have to raise the debt ceiling at what point do we go backwards with a fourteen trillion dollar debt.
And get away from this.
They're going to.
Make these predictions every time and Republicans are absolutely right to draw a line in the sand at this particular point we only have a fifteen seconds give me -- prediction Jack well the Republicans stick to their guns and not vote to raise the debt ceiling or will they caved in some kind of a deal.
If the Republicans though it's good for ongoing and the twenty well twelve they'll stick to their -- if they don't then let the chips fall where they may Jack on our toys -- play a pleasure thank you for joining us bank He just the popular belief is that the Tea Party.
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