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With me now former deputy assistant Treasury Secretary under one Ronald Reagan David now passed.
Former Office Depot CEO David Odland and the former US comptroller David Walker by the way David is -- distinction.
But be nominated -- by Republican congress and Walter Jones to be speaker of the house.
He didn't make it but -- that's quite an honor and he said he did so risking party -- because he thought you've got these numbers and appreciated these numbers.
But away we went with the usual cast of characters we've -- -- It was a pleasant surprise and he'll want to -- and I didn't talk about an advance but I think I came in fifth place well not bad not bad.
Did -- what what's happening here.
Added I know they take what you just watching of that debt ceiling debate comes up we're gonna get serious then.
-- -- I think it's going to be very hard to get cuts what Washington doesn't wanna do is cut.
Anything about was the overriding.
Idea of this debate Republicans kind of lost their -- -- as they were going along.
If you if you while hold this thing up -- got to point a finger at you.
And Republicans should have said -- we've got to find a way to cut Mr.
President what are your ideas.
And that just never really came through in the debate.
I'm Steve did.
You obviously want and it rotted away annual worker would have -- all bottom line he didn't win but was the election take away that Americans are saying no.
To cutting down.
The government because Democrats seem to -- haven by demanding that -- I -- -- off the table by the Congressional Black Caucus demanding Medicare be off the table.
It's dead dead they -- -- it that way what what do you think.
Well I'll be Republicans want my house I mean an end date control the house and Republicans.
Did that because they wanted to cut spending I think the American people.
Fundamentally in the heartland in small business understand that we have a revenue issue in this country -- we have a spending issue in this country.
All right we tried the revenue thing that's basically we drove off the cliff and -- they you know through Lebow some revenue now the spending cuts have to com.
Every small business and American knows that when revenue let's dot com they don't raise you don't raise rates you don't raise prices -- -- These -- about Conning you make perfect sense David Walker -- you've been bemoaning this and criticizing both parties for years now but you talk about.
All these unfunded liabilities that dwarf whatever numbers you -- traditional politicians talking about.
So if we're not cutting let's say hypothetically no -- -- get serious about this state and our mentions during a break.
The only way you can do it then is to obscenely raise taxes and even that wouldn't do it right.
Well that's correct if you take the total net worth the top 400 individuals on the Forbes list it's one point seven trillion dollars.
That basically is a year and a half worth of budget deficits the it's seventeen weeks worth of our increase in our federal financial hole that's if you confiscate all their money look here's the bottom line.
The debt ceiling deal on August 2011 was about spending reduction.
This was about taxes.
There were three mandates coming out of the election the president got a mandate to raise taxes on the wealthy the Republicans got a mandate to cut spending.
And the American people said you people better start doing your job and on your -- Now what we need to do is to take steps to try to achieve a grand bargain that needs to be weighted more towards spending reductions I would say 23 -- one then revenues.
Mobile I'm -- I'm not gonna have a lot when that you know and they don't have because I see polls not old bulls -- -- -- -- -- -- Americans are perfectly happy -- and it's of the richest don't touch my.
Medicare don't touch my Social Security -- -- my Medicare.
But I think what has to be proposed is downsizing Washington itself.
That's what they keep avoiding doing there's no agent that Washington is filled with the width.
Agencies that are redundant that don't know how did the error big government is -- -- -- -- Bill Clinton got it wrong.
-- government as I've clearly it is -- does spending has been going up by leaps and bounds.
And I don't think -- the rules right now are set up in a way that encourages spending cuts.
The debt -- let's take that as an example.
Let's say you go over the debt limit what happens.
You default on the debt or you shut down government but you never really cut spending so one of the things I think they should be doing.
Is repealing the current debt limit and replacing it.
With something that actually forces spending cuts which is what we don't do now we've never get to the point.
Where Washington actually reduces its appetite for money.
Have no you're right but Steve here's what's odd about some of your business colleagues.
They've been buying up this market.
They haven't at a great relief rally.
Thinking that all right now we have at least certain outlook -- -- now we know how certainly were being screwed so we're we're -- we're happy about that.
It's a weird reaction that would fly in the face of what you would think would be logic.
No I think that there's some confidence is something's gonna happen here but I don't think that we ought to did you see this budget deal this doesn't look like a precursor -- confidence.
-- it's terrible because we we we need fundamental reform we -- it over and over again tax reform entitlement reform.
But we -- what is really they're they're gambling here with a full faith and credit of the United States and if they drive up to the next cliff.
With the debt ceiling limit and they play games with that.
What they -- that they don't understand is it that we're not talking about a bridge here this is in negotiations on small stuff this is global impact.
In our credit rating agencies have already said look guys we're gonna downgrade you that's huh.
As of you know I don't know I don't -- -- -- carries the same staying and Dave walker I'm -- it does say Moody's -- that it acts on its apparent threat.
To take away AAA rating S and he did that and people can save have been there done that no big deal.
It doesn't have any significant impact as long as the Federal Reserve continues to self deal in our own debt very good buying an 80% of our new debt.
They're the only person one has any appetite for a long term debt.
That's what's artificially holding interest rates now down that cannot last forever so take them out of the equation you've got what.
Well you got 64800.
Billion dollars a year or more interest that's what you got if we go back to an evening you -- -- -- animal rights.
Unit and what.
Already what we have is business is not investing enough to create new jobs.
And so it is I would be happy if the Fed stopped buying up the government that we would at least be able to get a more truthful assessment.
-- how big the problem is but that the bigger issue is Republicans now.
Have the debt limit coming up and have to have a unified position and -- I'm worried didn't we just heard Marty Feldstein in the previous yeah blocked.
Making the point that that that they would -- White House has lots of the power I'd I was those legislative manager for the debt limits in the Reagan administration the White House can force those through.
And I don't think -- gives much leverage so instead Republicans should be demanding the spending cuts.
All right and stopped again it's --