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Washington for a second.
President Obama once asked congress as is actually once again asked congress.
For the authority to borrow an extra one point two trillion dollars he's gonna get -- authority.
That means by Election Day.
We may have a sixteen trillion dollar national debt.
Steve -- -- with the economic policy project he joins us from DC a frequent guest on the program.
Steve sixteen trillion by election -- do you think another downgrade.
May be coming for America.
I think we've had the warning already -- and I think the answer is yes.
We've been told black couple of rating agencies that if the so called sequester.
Those across the board cuts.
Don't take place a year from now as are scheduled to do there's a very good likelihood that we'll get a downgrade.
From Moody's at least -- I hate to be such a pessimist but I don't think anything constructive will happen this year on this deficit.
Debt now that that's interesting so you're telling us and Euronext -- in this field you've been in this -- -- -- life.
You're telling us that bit from now to Election Day there are not going to be any meaningful -- made to Al government spending policies.
-- I don't believe so at all Stewart -- Let me tell you a little story people in the house and senate already getting together for this conference you know on the -- why the unemployment insurance bill.
And many people think that may be the last substantive bill.
To pass congress this year except for a continuing resolution for appropriations.
Until -- -- after Election Day we get a lame duck.
That may be the last one.
That'll be decided about the twenty ninth of February.
That means we have locked in sixteen trillion total debt by Election Day.
I did I did so little a little bit a number crunching looks to me.
Like by Election Day will be spending ten almost ten billion dollars every week just on interest payments -- -- the expert.
-- -- -- -- -- that you are right and I'll remember how lucky we are interest rates had been abnormally low in the United States sovereign market.
At some point all this turmoil overseas is going to calm down.
We're gonna find ourselves paying more typical interest rates remember 4% on the ten year.
It's kind of typical we're paying less than 2% right had a -- that money for ten years.
Do you think that's.
All it is is a downgrade and a here's my question do you think.
That's a European style crash and I I'd say they have bad debt has crashed them.
You think it's inevitable in America.
At the present as we're going now Stewart yes I don't think anybody denies the sometime the next three to five years the bond market will start.
Looking at us.
With a much more -- guy and we will no longer be considered.
Not only safe haven for money.
Left from Steve Bell out of Washington DC first thing this Tuesday morning.
But the state what we know you know this stuff backwards and forwards and we thank you for sharing your expertise on Bonnie and company we appreciate it.
Thank you very much to I.
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