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Centurion Holdings CEO Joe Grano on the steps to reducing the government’s deficit.
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As we reported Fitch tonight downgrading its outlook on US debt to negative from stable.
About holding the triple A rating on US that.
That after congress' spectacular failure to address level -- solve the nation's debt crisis joining me and I is our market master.
Who offer real solutions to these record deficits and debt Joseph ground.
The chairman CEO of century holdings also the former chairman CEO of UBS PaineWebber author of the -- you can't predict a hero from -- -- Wall Street.
Leading in times of crisis.
Bush are great to see you and and happy Thanksgiving in the last time you're here we talked about solutions to indebtedness whether -- -- And its relationship -- -- housing crisis whatever it may be and there -- creating jobs.
But the deficit itself and today Fitch.
Changing it's outlook to negative when.
You know what we're sitting here -- with -- -- congress to create super committee since to the dealing with the issue a president who presides and doesn't propose real solutions to -- that's.
I mean what are we to make of this well first -- to have what I'll call partisan ideology.
Each side is dug in on their own ideology -- that are.
Trying to make -- -- -- bad rather than seek a solution well they're both doing a heck of a job right they need to start acting on that more like Americans once -- in -- -- much from the office.
The put -- in perspective -- 2008.
Our deficit was 458 billion there's now -- truly entry.
Our national debt was nine -- it is now fifteen -- -- almost a 100% of GDP it's a runaway train.
And unless we start taking some discernible actions.
And it.
We are gonna go to a negative no question in my mind it's become popular say this is unsustainable unsustainable doesn't quite cover -- I mean this is.
This is absolutely mindless -- and the consequence.
It will only compounds itself in terms of the next five years.
Well again it's also this philosophy.
Of tax and spend.
Doesn't work.
What creates jobs what creates revenues is wealth creation.
Not wealth redistribution what we're hearing a lot of rhetoric that regard.
I think we need to do.
One we need to cut spending at least 10%.
And I think in at the chagrin of my Republican friends we've got a perception problem this president in fact has created a division between rich and poor class warfare -- with a sound bites like let's tax the plane let's tax the millionaire.
That's not the issue nine and 1980 top 10% of Americans paid 32% of all income tax rate 67%.
But we do have this perception problem for gonna -- this country -- probably should raise rates maybe 5%.
And -- go from 35 to 37 so what in the New York Times had a terrific article today.
Talk.
About the new coalition for Obama it's more.
Group and identity politics played at its most -- cynical and frankly most of -- -- that indeed that turns out to be the strategy to be employed but this administration.
We -- we are talking about some real real solutions to to dealing with this debt.
And -- got some very specific idea that means that somebody has to be grown up.
Realistic and actually get to work on getting things done -- Davos a few ideas look at one dealing with one.
Although I'm not an advocate for this that being said raise -- raise our -- -- to fit people -- 250000 -- a 5% for the next four years.
The same -- they get back well at the same time reduce spending by 10% double a commitment from congress and the president to reduce spending.
And in that four year period let's stop -- escalator for entitlements just frees them don't come anyone's benefit freeze them.
As a security such -- yes -- freezer for four years now Social Security that is unsustainable.
When Roosevelt put it and it was the most astute political event in history because life expectancy was 64 yourself don't know until with a collective now we're all over eighty.
So which you need to do there is starting on January 1 and I've kind of vetted this for people across the country if you're 45 years and all do you believe.
You -- -- geographically.
If you're under 45 you know -- is going to be that much -- use that Mason Dixon demographic line and say.
On January -- -- 45 or older your grandfather.
If you're under 45 you have to work seven to for full benefit but you -- group.
You can double your IRA if you'd like.
To save money to retire early.
That's fair not a cynical say we'll report can't afford another -- well frankly they can afford 12 different problem requiring a different solution.
And I think that that would put us on on the right path particular for social security and.
Each instance what's required though is still the political will on the part of congress this president and to actually.
Mean what they say.
And have the guts to say about -- Yes how realistic is the prospect.
I honestly think that unless we get a deep pocketed independent.
Who can afford to pay for the TV time and go directly the American public I doubt seriously whether it'll get done I agree with your citizen.
Well skepticism.
You know we're we're we're I'll take that we're you know we're we're healthy skeptics and I still believe and -- the and the prospect of controlling our destiny.
In terms of controlling our destiny.
It might not be fair bit.
The -- might say that the leading.
American.
European socialists today met with -- European that the socialists.
The year they -- the European council the and the European Commission White House today.
Talking about how.
Italy needs another trillion dollars from the international monetary.
We are the principal of course sustain your of the IMF.
-- decision possible that this could this country's gonna continue this nonsense.
Well this country's going exactly the way Europe is -- and that's what we have we should learn from the lessons.
We are creating an -- society -- and listen.
My view is we have a moral obligation society take care of people can't take care themselves on the other hand those who can we must insist that they do.
And we don't do that -- -- growing the base for getting second third generations of people who.
Living on welfare in some cases we can't allow that.
With the Germans will do will say okay if I find it -- for 300 -- -- benefits for.
The take the job won't give the other hundred dollars that's what we should be doing we should be encouraging people have a work ethic.
Every major society in history.
The downfall of every empire -- when they lost the work ethic.
And they.
Became too entitled in this society that's we can now we have a great country to which -- protected.
It's a little.
