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Former Senators Bob Bennett and Sam Nunn on the state of spending in the U.S. and whether government can make necessary cuts.
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Turnouts we've got.
Former senator Bob Bennett former senator Sam non debating what we do now on on the debt and you're quite right gentlemen normally -- stuff comes up.
Indeed celebrate -- after an election.
But senator -- you if it's if Barack Obama is reelected.
The argument is right now we're hearing a lot of -- Democrats not all already planning spending initiatives of their grown in other words to keep this big it's beginning.
Nothing changes over Republicans conversely if Mitt Romney were to win.
Our are planning a lot of more military in the -- spending how do we disavow each side of -- knee jerk.
Inclination to stand on industry's favored to its party senator -- first.
Well -- salt hope that the debate will love produce a more honest dialogue.
And then write -- the election -- -- was elected weather is President Obama long column on Mitt Romney.
We face the -- fiscal cliff in January and almost all economists.
The left or right or senator say that that would cause a high risk of another recession a deep recession.
So what I would like to see instead of the fiscal cliff -- we face and instead of kicking that can down the road six months.
Why don't we change cans why don't we use Simpson Bowles the minute -- Rivlin -- some legislative combination of those substituted for the -- And say okay you've got six months you can overturn it.
You may not like it.
But it's a lot better than what we face right now so why not substitute.
A logical.
And -- Default position for what we have facing us now.
Senator -- what are your gut do you think they will do when I mean regardless who wins in November.
The prevailing wisdom there is today either delay.
These cuts try to screw around -- sequestration so that this.
The cuts are put off a little bit or all the bush rates don't expire immediately.
That a glorified -- to commit candor on the -- what what do you think we'll.
Well hi things that suggestion that senator Nunn has just made is exactly the right thing we ought to do we -- to see them do.
I do not see -- sequestration.
And three fiscal cliff -- see congress blinking very big time.
And saying well let's delayed so that a lame duck session that besides that no no I bring.
But maybe they'll do it in the lame duck -- -- they come back to on the third of January.
Do it quickly well let's just put off for a little while we talk about it.
Because no one wants to be responsible for their consequences.
That would calm if they did nothing.
So did news and instinct -- well let's just put off a little while while we've got -- We've we've done that forever let's senator now yeah that's not a solution -- it was a senator -- to that point if we end up doing something like that.
Aren't we reinforcing.
The credit ratings agencies.
Desired to downgrade us.
That that's the stuff of banana republics and and net now there's going to be hell to -- for doing it.
Well I think Bob is basically correct.
-- yes it's it's an -- of rating agency but the fundamental issue is a moral issue on a generational issue.
And beyond the numbers we can deal with the numbers it to them all sorts of people on both sides it can work this thing out.
But you've -- real signal to the markets and to the world into our own country is that this government cannot function.
That's a more dangerous signal -- even the numbers.
Do you think senator -- that if we don't make a move there and soon the message to the markets will be sell off like -- The one thing that -- markets more than anything else is uncertainty.
And -- -- -- just described.
The biggest uncertainty of all which is will the US government be able to function.
-- there -- -- little -- freedom public divide I want your winters like.
Then if we if we don't act immediately what you're saying senator is that you you can't keep pulling ms.
Stein.
That -- this time there would be able to pay for that.
Well I think -- GDP growth would continue to be sluggish is indeed not tip over into another recession.
Just because as has been pointed out in in previous versions of this.
There are trillions of dollars.
Waiting on the sidelines.
For some sense of certainty to come into the economy and investment.
And it's the federal don't get it can't get their act together and responded I bet that values don't come in I'm sorry senator arms are present on -- -- just wanna be clear summing -- Do you.
Think then that.
There would be a collapse or would -- sequestration cuts are just cuts off the growth.
-- standing in the military all these others over ten years no less are they really that draconian that there be that kind of depend.
Well -- to change our previous habits but has not draconian we like modest changes now or every day -- month -- year we wait to changes have to be more.
-- and it's -- out of these sequestration cuts and every one global calls doomsday are they really dead Tuesday.
Well as a huge increase in taxes and it's a very large go to -- extended to -- all at once is -- once got a -- wants his son menace and a fragile economy.
So no one knows precisely what's gonna happen.
But.
You know I think we're.
Right in the middle of Winston Churchill's prophecy where he said that America will always do the right thing after -- tried every other alternative.
We don't know how long we're gonna have to get through -- the alternatives and do the right thing.
No one can predict that.
The markets are comfortable until they're not comfortable and it happens as we've seen in Europe -- good point the markets are comfortable.
So that our country that is a very good point.
Gentlemen thank you both very very much.
Thank you thank you -- progress is possible --
