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Former Commerce Secretary on the Fiscal Cliff

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    Former Commerce Secretary Carlos Gutierrez on the fiscal cliff negotiations.

  • Duration 4:49
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Inside look here now but what are they saying they're saying that it's this rumor that we started to get inching closer to a deal here -- if anyone.

Has the -- -- to solve the fiscal cliff.

It's Carlos Gutierrez he's seen the inner workings of Washington as secretary of commerce but he also turned around a publicly traded iconic company.

That was Kellogg.

Shares jumped 21%.

When he was the CEO from the late nineties to about 2005 now he's moved to banking as vice chairman of Citi group's institutional client group.

He's joining me now in the first on Fox Business interview and and I want to let our viewers know the Genesis of this -- ran into you.

In Washington DC -- ignored the threat just a week and a half two weeks ago and it's it's gonna come on the show because I thought that your opinions on this fiscal -- very interesting.

And right now let's work with the news that we have today right.

And John Boehner.

Saying a million and that's what people should have expiration on the tax the income threshold president now moving from 254 per household to possibly 400000.

We can have a deal.

And also -- I I think so like and -- eight opinion is that if we have to go over the fiscal cliff to get a good deal.

That we might as well bite the bullet now do with now and throw in the debt ceiling.

It's it's a big -- to -- your outlook -- the -- and you -- the Republicans should use that in their back pocket.

Absolutely but I think it's it's to no one's benefit to have a debate in March.

About the credit worthiness of the US and -- once again in the world was looking at this circus.

And people around the world -- asking does your system of government still work.

Are you still capable of solving problems that's not good for the US not good for the dollars on good for investment.

But the two sides are doing what appears to be a delicate dance -- do you call it before the end of the year but there's a deal.

I don't think so I I think that if if if we get a deal before year -- what worries me is that it it will be an incomplete deal.

Or cost will be promised but they'll be down the road and that is a real trap.

We can't keep doing we we are not good -- cutting cost that's the hardest thing to do in Washington taxi X -- which -- a plan.

So.

Let's get it done now even if we're going through January let's get it done don't look like -- CC.

President Obama moves up a little bit John Boehner moves down a little -- this is a classic negotiation they are getting their car -- on many days where ramp -- they are getting close to what gets in the way is politics so.

Frankly Harry Reid's statement not helpful.

The president campaigning on higher taxes for the rich not helpful.

Was it on helpful when John Boehner out of the -- came up put out a board that said it's about spending.

Mean that.

Really shocked at what it would give -- cargo of it was part of this still negotiating in public official should.

They doing it a couple I know -- because they wanna get political points we are still playing politics even though the election is over and that's the problem that's the big when you're commerce secretary do you recall ever being party to a situation like this.

Look -- remember -- -- oh sure I mean did you know -- we're involved in and it in a couple of these and -- closed down I want trade trade bills have passed by one vote to them at midnight in -- and things of that nature.

You don't.

Some people will tell you in DC look I think this is the right thing to do but I can't vote for.

You know -- -- -- politics comes in and that is what's plaguing his these negotiations you are part of the bipartisan policy center now that bipartisan policy center put together.

An idea to pay down the debt it wasn't Simpson -- it wasn't to Medici -- one what made it -- the most.

Well what it was it was very different -- -- every day similar to Simpson Bowles but -- the expense to tax ratios was very similar.

And the important difference because if it was it was -- Domenici Rivlin.

The big difference is we had labor.

We had business we have association's.

And we are in -- room we locked the door.

And we got to work and there was no public posturing it was we have attached to do.

What will would finally look like you have talked about a fiscal stairway not a cliff it it could be that they agreed to a plan that is implemented in steps in stages -- of fiscal stairway -- we don't fall all the way through.

That could be an option but it.

We have to have the expense tied to the revenue we have to have a commitment that it's going to happen.

Because we've done this before.

And after cutting expenses as the hardest thing to do in DC.

Yeah I know once once they have the money in their hand -- -- -- to let it go.

Carlos Gutierrez is now vice chair of Citigroup so he is now on the banking side coming back on the other side of the break -- going to ask him.

What are they talking about in the executive -- there is it more about the fiscal cliff or Dodd-Frank regulations or something else Carlos Gutierrez.

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