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Rep. Cliff Stearns, (R-Fla.), on why there should not have been an auto bailout and growing calls to open the Strategic Petroleum Reserve.
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Joining me now Republican congressman cliff Stearns of Florida chairman of the house subcommittee on oversight and investigation.
Who has led the charge against wasteful government spending particularly with the investigation.
You -- this Solyndra mess.
Congressman welcome back to the show.
I wanna continue with this theme of the president speaking to the unions today get you to react to part of what he said here's the president.
It wasn't just because of anything management did it was because -- -- but is it paying off.
You know they still lowest 23 billion dollars come online at the end of the day different -- taxpayer come first isn't that the president should be answering to.
Let's hope so Jerry you know -- chapter seven as we liquidator corporation Chapter Eleven is where you reorganize.
I don't think the president understands the difference.
When you reorganize under Chapter Eleven all the bond holders have rights all the creditors have rights.
And everybody goes -- a systematic approach that's what not that didn't happen this way Jerry.
They cut out all the bond holders they paid nothing to the creditors they gave them money of eighty billion dollars to.
General Motors.
And then they also get away with a lot of franchisees.
Just -- unceremoniously took away the franchise for people ahead of for thirty -- forty years.
And they did it for political reasons they've brought in the unions and gave them a special.
Compensation of ownership of stock and that diluted the stock -- the stock -- -- it's very wrong what was done and it's unconstitutional.
Well -- you know if you're saying there were winners and our losers you know the unions want the unions -- an -- political voting bloc.
And now -- -- Obama is making fun of Mitt Romney for saying he didn't like what happened.
-- we think about Mitt Romney's position on this because he basically says we never should have bailed out.
-- unions and the big auto makers.
Mr.
Romney -- governor Romney and senator Santorum are correct.
We should have gone -- -- normal reorganization Chapter Eleven that's what it's set up for for corporations actually we should do it that's -- way they yeah.
Judiciary and the bankruptcy laws are set up he should not go in and make these.
Favorite.
Winners and losers and then of course they still -- the money.
But think about this -- they got eighty billion dollars and almost practically zero interest rates with no pay back for Cray are -- except that they made it.
And you can't get a -- like that in business I mean.
Please if you're going to socialize this country and give taxpayers money to every corporation is in trouble.
Then we're gonna be a very bad shape because we won't have free enterprise anymore it's really outrageous what the president just said.
Well I I got to tell yeah that's not the only shortcut that they administration wants to take there's also the strategic oil reserves now a number -- Democrats saying it's time that open those up open the gates to the strategic oil reserve.
Including Ed Markey Peter Welch rose a bill -- I mean you know we Dennison number of times 9120052011.
This is not the time to open those gates you're only supposed to -- of the times of the national crisis.
Exactly if we had a Katrina we had a desert storm something like that.
But of course we yet he did it with Libya.
And he took -- strategic.
Petroleum reserves and used some of that for the Libya crisis but shortly after he did it.
The prices went up again -- did make any difference and I think the president is very unwise to react so quickly for political reasons.
When when he really should think in terms -- strategic.
Is this a national emergency I don't think it is.
Well I -- I think at the end of the day we are in full campaign mode it's not just the Republicans who were in Michigan.
Tonight it's also the president obviously -- is -- campaigning like heck.
-- let's talk a little bit about what he did recently.
With this out pipeline they Canada's been proposing he finally agreed to -- seven.
What is that about that sounds to -- -- gags trying to square the circle here.
Well I think the Canadians really call this hand because they can go from Oklahoma to Houston.
And get permits and starts building it without his -- decisions on a way.
They called him call his bluff and say we're starting the process and I have to admit I have just pleased that the Canadian company.
Corporation Alberta decide to do that because.
If the president loses of course we'll have the pipeline if he wins I think there's going to be so much pressure he's gonna force.
Two continue the permitting across up of Nebraska and the Dakotas all we have to Canada because we need that oil to refined and bring that.
The cost of oil down that's the kinda thinks he'll bring the cost of oil down.
Well the national average now at three dollars and seventy -- -- cents a gallon.
Lot of people say the four -- is the tipping point when the national average hits that Katie bar the door Americans are gonna start acting differently they're gonna stop driving -- gonna carpool.
-- -- the retail sales will go down.
Do you think that this could become the issue of the election and what do you see for Americans out there who are struggling with them.
Yes.
But -- I have to -- I am a little biased as I've seen all this.
It's every single loan guarantees like cylinder.
And others and I see this pushed by the administration to get -- rid of fossil fuels if you get rid of -- fossil fuels than what you end up with.
-- higher gasoline prices whether it's a keystone pipe.
But whether it's.
These solar panels or wind panels are all these things -- -- pushing.
It's making more difficult to get the fossil fuel crossing get gasoline for our consumer -- and his whole agenda.
And dealing with Green energy is created.
A bottleneck so that fossil fuels.
In this sense cannot be incentivized to get people to drill and to produce and -- -- oil so we can get it to the pomp and bring they get the cost down.
We're not saying that say Nat gas needs incentivizing are you because.
There's so much profit in that business right now they don't need any help you're not saying give those folks money are you.
No I'm not saying giving any money but but continue to drill for oil continued to -- the Keystone Pipeline.
Allow us to do franking to get gas in the -- midwest.
He continued to use coal in our utility and other -- user resources we have so that one word energy independence.
Two there were exporters and then three the cost of gasoline at the pump will come.
Down it's just that simple come down and give American families a break this has been a long recession people are still struggling.
Congressman Stearns thanks for coming on tonight we really appreciate your time thank you --
