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As far as the debt ceiling deal fair to say -- nose -- for sure what to expect by August 2 from one -- administration stands today pleased to.
Welcome Gene Sperling the director of the National Economic Council and He assisted.
To the president for economic policy gene welcome as you know time is running out companies holding back making our economic woes even worse -- -- -- -- downgrade.
What is the latest word from the White House.
Well what we've been saying what the president said on national TV that we need a bipartisan compromise.
Let's move our country forward we think that to be something with a solid down payment on deficit reduction.
The prospect of further tax reform and -- reform to get the deficit down.
And taking away the prospect of deep -- the cloud of uncertainty off for our economy well in the 2013.
That's the type of compromise we need we believe that senator Reid's plan represents that type of compromise.
But at the moment.
We're not seen a willingness from the house to entertain.
That type of legislation and that is leading.
To a stalemate that we -- unnecessary.
We should be able to reach a bipartisan compromise on those three elements.
And take away this prospect of deep fault for the first time in our.
History as you know the -- plan has been criticized for being gimmicky and late word is that the Boehner plan is starting to get traction in the house of course senator Schumer said.
Won't go through that senate and the president would you say is likely to -- it as well.
-- I think what's important to the president and and the reason why He strongly refers.
Harry Reid's plan the senate plan.
Is because it meets the test that not only President Obama sat but that majority leader -- -- speaker Boehner it's that as well earlier.
That you want to extend our -- limit.
Well -- to 2013.
The prospect of deep fall -- like a cloud of uncertainty over our economy and job creation.
And all of the leaders had previously agreed that that was -- ball.
We want compromise but -- really needs to be a compromise that takes this cloud of economic uncertainty away from us.
And you don't want to be an election issue correct.
I think that it's not about election nears -- about the American people it's about.
Them being able to borrow at a reasonable cost it's about giving companies the confidence to investing -- jobs and if we have this.
Type of budget process in our country for the first time ever.
Where people are using the prospect of deep fault as a way of getting their way.
Or -- kicking that down the road 678 months whether it's an election year or not.
That keeps the prospect of deep -- As a cloud of uncertainty on our economy we need to remove that that's something all the leaders had previously agreed to.
That's one of the things the President Obama is insisting on.
That needs to be part of a bipartisan comp.
-- now we know the ratings agencies are calling for something like four trillion dollars in spending cuts to protect the AAA credit rating of the U west it sounds like we're moving away from that number much less than the ratings agencies at least.
Would like to see so is the administration preparing for the possibility of a downgrade.
But look the rating agencies will make those decisions what we as policy makers have to do is everything to for -- Integrity and credit of the United States and one of the things that standard would -- -- very clearly on July 14 and repeated yesterday.
Is that have been multiple votes on the doubt limit.
So that the prospect of deep vol.
Hangs on the economy every five or six months is something they -- clearly view as a negative in making downgrade determinations.
We can make a choice right now whether it's a senator Reid's plan or another compromise.
To to let that cloud of uncertainty.
And -- the prospect of default.
Off our economy well 12013.
Well we hope this economy has taken stronger home.
Well the economy is not doing that yet the Wall Street Journal we spoke of cape mine -- earlier this hour who pointed out that.
Businesses are hoarding cash -- taking measures because they're almost afraid of -- post Lehman Brothers collapse style credit freeze because.
Of all of this so as we approach the August 2 deadline to come into the next election season.
You have the president's -- -- if you would about the discussions you're having about how do you.
Help this economy how to boost the economy what's the strategy what's the message from the administration going to be about how you're going to -- rescue this economy.
Well -- couple things most immediately.
We need to take this prospect of default off the economic horizon well and -- when He thirteen that's number one.
Number -- let's get a down payment on fiscal discipline right now.
There's been bipartisan agreement on that three let's have a commitment to do.
Longer term entitlement reform but at.
As we do -- reduction let's do it -- that smart for our economy let's not have contraction.
Economic contraction by not putting spending cuts in too quickly for economy the president's talked about it extending the payroll tax cut.
For 150 million Americans that puts more money in people's pocket.
It's more buying power and could be very helpful.
-- one -- well for helping this economy take hold.
A lot of forecasters still expect.
Growth to be over 3% in the second half but we can't take that for granted and we could hurt those prospects if we allow this type of uncertainty.
Over the prospect of our country's first -- To linger on -- now or to kick it.
Can down the road so that we're dealing with this all over again in the beginning of -- well.
Well I think everyone's on the same page about that Gene Sperling pleasure to talk to think free time.
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