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-- what's what's put in -- perspective here that.
We still have just about seven days to get a deal done and avoid potential default on the debt ceiling and the clock just keeps on ticking toward that August 2 deadline.
Our next guest has some ideas on how to fix our debt dilemma after all He is a member of the gang of six the bipartisan group three Republicans.
Three democratic senators and is the chairman of the Senate Budget Committee joining me now we're -- now from Capitol Hill democratic senator Kent Conrad of North Dakota.
Us senator so appreciative that you're joining us because -- you've got some insights -- -- how are we any closer to a deal on this.
In one sense we are lives because you know in this town you gotta go through -- certain Monica boutique.
A look a certain amount of theater can't to get to the other side that I I think that's kind of the the stage that we're in now.
But you can Begin to see the outlines of the plan.
That could take us forward.
I think senator Reid has made a real contribution.
Putting on the table two point seven trillion dollars.
Reacting to what the Republicans in the house of -- there's no revenue in this package.
But it would create a special congressional committee.
To report at the end of the year.
On a plan to deal with our entitlements and our revenue from.
So that could be a way forward here but.
Lots of work yet to be done.
Lots of work to be done but you know interestingly enough the gang of six of which you're apart had come up with a plan of course.
It's a matter of timing it would take too long to write that up -- Republican senator from Maine Susan Collins just told a fox producers that.
Quote she wants to see the leaders take a version of the gang of six planned with its 500 billion dollar down payment.
This all needs to be done before the election.
And of course the extension of the debt ceiling what in your part of the gang of six when do you feel really should be.
In -- -- for a plan is eventually adopted.
You know I think the strength of the gang of six -- his number one it is the only bipartisan plan that's emerged three Democrats three Republicans right.
Six months hundreds of hours of negotiations.
It is a balanced plan in the sense that it has entitlement reform tax reform and spending reductions including defense.
And it is a package of almost four trillion dollars of savings over ten years which is about the size that we need at least -- beginning.
And so there are a lot of strengths in that effort and you know none of us got quite what we'd like to have which is probably a good indication that's about where we have to be.
Well a lot of people say that that -- both sides are unhappy it means that maybe we got a decent deal here let me go back up four trillion dollar numbered the S&P analysts in the the people in charge of deciding whether they'll downgrade US debt said they need to see to avoid that they need to see four trillion in cuts.
But they also needed to see bipartisan movement.
Neither the replanted the -- plan has four trillion it just doesn't OK so what we're looking at though in the end is a question.
Does your plan -- gain of six even stand a chance.
I think it does in fact I think at the end of the day.
Something like what we've done which is very close to what the fiscal commission did.
Which is the only other bipartisan effort that's emerged around here that was eleven members five Democrats five Republicans -- -- the commission.
Our group 63 Democrats three Republicans and the two of those.
Came out in almost the identical spot so my own belief is when all is said and done around here.
You're gonna find that there were very close to what we've done because that's what happens when Republicans and Democrats have taken over an extended period of time really have a tough negotiation.
So we had view we had Dick Durbin we have Mark Warner on the democratic side on the Republican side Tom Coburn Mike Craig -- and Saxby Chambliss.
But now -- if for example the Boehner plan were put forth.
The president's advisors said that they would recommend He veto that I do agree with that.
Yeah I think look the Boehner plan.
Really is nowhere near what we need one point two trillion dollars.
-- just think that's not normally don't need to be.
OK but the -- plan of course has some what some people would call a little bit of gimmickry when it comes to.
One trillion and credits in involving the war wind down assuming that we would have one trillion.
In cuts because -- be pulling back from war spending which we were going to do anyway so how do you square with that.
Well it in fairness to senator -- old the office of management and budget and -- Congressional Budget Office would.
Both score his savings as real -- on the other hand all of the bipartisan commissions.
That have worked none of them have counted that savings.
25 seconds left how worried are you senator that we won't come to an agreement by August 2.
A little more nervous than I was I I believe at the end of the day we will not default that would be a catastrophe.
Let me just emphasize to people this is not a matter.
Saying that congress can spend more of the future this is a matter of paying the obligations we've already made.
So if we don't do that you can imagine what would happen in the credit markets are interest rates and go up and for every 1% increase in interest rates it adds one point three.
Trillion dollars to the debt so.
We gotta keep that in mind.
We sure do senator Kent Conrad are very big thanks for getting before cameras I -- -- at extraordinarily busy time for everybody in inside the beltway so thank you.
Very much should be with you any.
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