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Former Republican Party VA chairman Kate Obenshain and former senior advisor to Sen. Harry Reid Penny Lee on the U.S.'s rising debt and whether we wil...
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When it comes our nation's debt following president Obama's plan.
To put the United States on a path to becoming worse.
Off than Greece and twenty years this is according to a recent baron's article.
Kate have a chain is former chairman of the Republican Party on my home state of Virginia.
And he -- his former senior advisor to senator Harry Reid.
And I am not biased based on not of their ha ha hello a large -- -- -- -- came front.
-- -- -- -- -- -- -- -- -- I want to know why is this not a problem why shouldn't we worry about our rising debt.
How we absolutely should and I think the fact.
Stake in that was the end that lead story and bear and the very respected organization news organization not interested in scoring political points.
That's a clarion call that we have a massive problem they point out that the president said -- week's state of the union -- strong compared tell why.
We are in theory yes problem here and the president is actually -- the deficit is under control what it is sixteen point -- -- trillion dollars.
That is.
Six trillion dollars wrap -- up during his presidency we are not in good shape and we need to -- Be concerned about the fact that we're headed straight towards Greece but penny at least the bond market in the long term treasury market is say -- to mandate.
No need to worry right now at the US can continue to bar around 2% a year.
Over ten years why is there reason back.
But investors you have right now you have to -- scenarios which is.
Dealing with the short term crisis is it seems to be it right now Washington we always -- have a crisis to sure.
Right now it's on sequestration at the end of the month is gonna be on the continuing resolution to from the government in August is gonna be on the debt ceiling again.
So it's almost -- going into a situation where we can't chew gum and walk at the same time and it focuses just on the short term when in fact we do need to take a long term look.
That's what the president was talking about and he -- touched on it in many of his speeches but.
Is -- town almost you know beholden to itself but only dealing with the immediate -- I wanna follow up on that -- because do you believe that part of the democrats' ultimate plan.
We're not just include increasing taxes and raising revenue as but we'll also include serious spending cuts and that would mean entitlement reform.
Right and you didn't Democrats have already agreed to about one point two trillion dollars worth of deficit reduction measures.
And they continue to stay there are places in which they can do reducing spending.
Is this said that did -- to look for the president's budget and that he is going to finally take a look at some entitlement reforms.
That is what's really needed right now because the spending cuts that are out there right now are almost touching it at the margin.
Until we deal with 60% of the spend which is in the entitlement programs.
We really can't really deal with the long pound at that camp that's really what the focus needs to be on.
Penny I -- -- you were on capitol hello -- elected official I was sure the president's -- because the president is saying exactly the opposite Nancy -- -- the president Jay -- say there is not.
A spending problem and all their concern about is focusing on raising -- -- look if we immediately jacked up the tax rates.
To 50% for the top 1% of earners as Barron's points out.
That would be miniscule.
In terms of taking care any it would be.
Just didn't have that.
As soon end of what the deficit as it would not even come close so it's irrelevant what they're talking about.
All the president is interested and it's continually expanding government so we can achieve that goal of re distributing in combating his -- he's.
Not -- you're -- -- I don't worry about that.
-- that we can't have it both ways you can't -- is to blame the president for proposing sequestration which is one point two trillion dollars in the -- he say that he cannot nodded as heck at at silly isn't it still very is Bob -- on both sides I guess I wanna say is that the but the president has put forth.
Some of the spending cuts but we need to take more title look at the entitlements here's my prediction ladies that nobody's gonna do anything in Washington and -- they're forced to do it through higher interest rates.
There are collapsing -- I personally don't wanna see that day but right about to that's what forces that.
You're both welcome back any -- great conversation K and -- thank you -- so very much thank you love.
