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Former Senator Alan Simpson and Erskine Bowles breaks down the fallout of the Super Committee's inability to come up with a deficit reduction plan
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Continue to follow -- story through the hour and Monica and -- will be back we'll talk about it some more.
But first with only eight days to go for the super committee to come to an agreement on how to cutter national deficit.
Strong warnings warnings that is from the former heads of the president Obama's fiscal commission Erskine Bowles Alan Simpson.
Told the committee just last week the consequences will be dire if it fails to reach agreement by just next Wednesday.
-- with the clock ticking whether the committee will heed their warnings still remains to be seen.
Earlier today I sat down with both men for exclusive interview take -- listen.
Well gentlemen we are in the final countdown with the super committee they have just eight days to come up with one point two trillion dollars.
In deficit cutting.
What's at stake here senator first to you -- -- big stakes.
One point 20 is just a baby step.
We recommended four trillion -- cuts and we're very specific -- five.
-- -- -- up in arms we were so specific we get actually nail woman now they know they would have a chance to get nailed them there.
-- on the ads and to the media but.
It's it's heavy heavy lifting four trillion who would be a minimum they need to go bigger than that but I don't think they will vote urged -- has the little dimmer view I think they may make it.
But it's gonna be really tough because the groups reduced hammer them.
Why well at -- and that's absolutely true lots of criticism of the super committee senator Chuck Schumer said that late last week that there's no way they can get this job done.
What what's at stake here -- if they don't get a deal what happens next how catastrophic is it for the financial world for our economy.
Jerry I think.
If these guys don't go big if they are -- that they don't look Smart way.
We face the most predictable economic crisis in history.
I move that the fiscal path that Washington on is simply not sustainable and I know that all those guys on the fiscal commission know it.
And if I had to give you an analogy I would saved these deficits.
Are like cancer.
And they are absolutely going to destroy this country from within over time.
Well you know how -- covered extensively what's going on in Europe particularly with Greece and with Italy those two countries having major major financial problems.
Senator -- you are we need the next European country that fails if we don't get our act together here.
Well my pal here says there were the healthiest -- from the -- factory.
Close to that.
Don't don't forget that what Italy is grappling with right now is the fact that they old to a 1000000000600.
Billion.
This country old.
Sixteen trillion.
I mean there's nobody -- wrap their head around a trillion trillion of the follow them in all billions.
Since the Big Bang -- of the universe was thirteen 1000000600.
Million years ago that's a third of a trillion.
And we all sixteen trillions I mean wake up with where we're out we're water and in the fall.
We are wandering in the swaps but the two of you warned everybody about this Erskine -- how does it feel after you know.
Putting together a commission and issuing a report warning -- all these problems being virtually ignored how does it feel the day to watch the super committee -- Virtually the same thing.
But look hey look it's not easy.
It's especially hard.
But these guys because -- put their jobs on the line.
Look for problems are -- -- solutions are all thankful there is no easy way out.
And everybody understands the economics.
As -- said.
Four trillion dollars is.
The maximum amount we need to reduce -- deficit is not -- ideal amount.
It is the minimum amount you need to reduce these deficits over the next decade in order to stabilize the debt and get it on a downward path as a percent of GDP and it's tough.
Because you've got to -- everybody's.
-- to do it.
But you can't do it we showed it can be done.
We got a super majority of our commission -- we've got a majority of Democrats a majority Republicans we had six US senators on our commission.
All three Republicans.
Thought to the three Democrats all voted for it we went from as far left is Dick Durbin from Illinois who is far right.
Got a long way to go -- today gentlemen.
As senator to you some of the impacts that are possible -- the two of you talked about another possible debt downgrade.
In the offing Leon Panetta earlier this week saying the Defense Department would have to make draconian cuts it would take the air force back to levels it's never -- -- That would devastate.
The defense.
Can we sustain that -- is that possible do you agree with Panetta's analysis.
Well I agree with Leon Panetta on so many things you dear friend -- him -- -- My wife and very special guy I think you believe in the long.
He'll do things with a scalpel but Leon is also -- What he can't do without hurting.
Our national security.
I mean when you have contractors in there between a million and ten million contractors all charge and 350 bucks an hour mistaken -- the USA and all auditing of any.
When you have a health care plan.
The cost 470.
Bucks a year.
And a co pay of -- -- cost 53 billion a year Leon will find that.
Don't worry about destroying the air for sure the infantry which I was in.
Battle -- but but you know leave it to Leon to do it.
He's got to be dramatic because the the forces are telling him well as admiral Mullen said the biggest threat to our.
To our security is the debt and the -- Erskine that you were -- -- President Clinton you've seen this kind of disagreement occur but have you ever seen such -- branched.
Positioning where people can come to agreement on virtually any thing.
We're -- Jerry I the joy of negotiating the balanced budget back in 1997.
For President Clinton and get it done -- spent months and months locked up in conference rooms whip Trent Lott.
And with Newt Gingrich.
And the difference in -- now is not the partisanship it was highly partisan in the different then and now as we head to decide.
They're really wanted to get a deal done and they were willing to put that partisanship aside in order to do something that was right for the country.
And we just we really don't see that desire to get something done today.
Senator do you how do we find common ground here what is the cuts -- -- you guys have been lecturing this super committee for some time to get their worked.
But do we need something else what is the thing that's -- I'll allow us to find common ground here senator.
Ridicule when they Begin to ridicule -- that they don't come up with -- -- and else faithful what -- -- people doing in there.
How could you do this year country.
Don't forget we politicians we don't ever respond we react.
And as the time gets shorter in the four days -- of days.
They're going to be a lot of hair and eyeballs on the floor -- room we'll show you what happened but let me -- of the people who chicken out on this one I think guys are gonna lose the next election.
Well from for its it can be it can be done.
Made it absolutely can be done you got to remember of these guys only have to get a simple majority not a super majority like we did.
The politics are better now than they were last December because of this whole debt default.
Fiasco we went through what's going -- Europe more people understand the nature of a problem.
And they've got this hammer.
This camera -- across the board cuts and everybody knows you know that's what Leon talk about that cutting across the board is never were Smart way to balance the budget.
Well from your lips to God's -- I hope that that Europe is up as a learning.
Seminar for people in Washington so we get this done.
Thanks so much for helping us -- they gentlemen Erskine Bowles senator Simpson absolute pleasure having you on the show.
Thanks to -- thank very.
