This transcript is automatically generated
Today right now on to our top story -- debt ceiling disaster.
Could be coming sooner than expected.
A new report by the bipartisan policy center says that -- -- out congressional action.
The US will smash into its borrowing limit as early as mid February so are we doomed to default or will lawmakers be able to get the ball rolling.
And solve this crisis.
Now we've got a funny our panel here to help us sort it -- out former Tennessee governor.
Bill -- -- is a member of the fix the debt steering committee we've also got Doug -- deacon.
He's the former director of the CBO and Evan by his former Indiana senator and a Fox News contributor.
Allows credit power panel of the bill let me I I hardly -- to start -- you first crack at eight.
-- it's appalling that we've gotten this far why.
I think that's.
I mean I just think that's -- to playing games in the way this having political games with the faith and credit in the United States is or isn't crazy position to be and it's like playing with fireworks and it's Buckland actions and I.
In -- fireworks factory or something.
I understand the need to deal with entitlements and to reduce costs on -- but there's other ways of doing then there's the whole -- thing coming up down the road.
I think it's crazy for the congress to be messing around with brinkmanship on this particular issue.
Doug seriously as it were to hit the debt -- what really happen it student do we suddenly -- we stop paying certain parties what happens.
-- -- this that you as a sign that I think that's down real quick that okay I was spending.
I'd say two things first -- as -- have to point out there's a lot of uncertainty these projections that amid lots of them many of them -- badly wrong and that's just part of the business but.
We shouldn't flirt with the debt ceiling at all to rub against the debt ceiling is to effectively send a default -- -- the world.
There's a lot of talk that somehow you could pay some bills and not others.
But -- -- fact you can pay the interest in the social security and things like that.
He couldn't pay the troops he couldn't pay for roads bridges the basic -- search education.
It's simply nothing to flirt with you would either -- the international community death or deprive people of basic services or both we we we should have an agreement and I think we do.
Do anything but raise the debt ceiling.
We should have an agreement that we should fix the spending problem what we don't have a -- -- how and they ought to get started on that right away.
-- and he's speaking of how to do it having your someone that has been in the trenches so many times it got frustrated with the process I -- what do you think of what's going on right now.
Well I don't think much about it anomalous it's shows that deep political dysfunction that we have at the heart of congress right now -- the heart of our political system.
So my best guesses to what's going to happen.
I think both of our other guests are exactly right at a time when the economy is weak we don't want an added debt element of uncertainty which flirting with the default would add.
And god forbid if it adds even marginally to our.
Longer term borrowing costs that's gonna cost us real money compound the -- thirty or forty years.
But what I think it's gonna happen -- I think they're gonna probably go right up to the edge and probably over by a little but I think the Republicans in the house will probably say.
We said we're not gonna borrow any more money without spending cuts.
So we have this thing called the sequester which is gonna cut -- spending across the board except Medicare Social Security Medicaid or accepted.
You know we'll just let both of those go into effect and so Mr.
President that's what you want that's what you're gonna -- I think.
The markets for -- pretty badly to that it will force them to come back in a few days and probably kick the can down the road a few months more and we might be -- back on this very -- talking about this again this anybody in April or may feel it's.