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Here to discuss what lies ahead in this what is shaping up to be a battle of the budget.
John Lonsky chief economist for Moody's capital markets and the executive editor of the weekly standard Fox News contributor.
Fred Barnes -- -- first if you well your your assessment is to two Republican senators blocking out what looked like a a piece of legislation that was -- on its way to.
-- actually making it through.
-- make a thrill I mean we have until March 27 until.
If that money is not approved and signed by the president that they.
The government would have to that cease for a while so that'll capital updated with -- that is for asking for 72 hours they'll get 72 hours so.
I think this is.
Not really that much of a flap even though Harry Reid gotta love all -- up about it -- -- never heard anything like this before.
That's the guy -- presented the budget in the last four years until today.
When they finally did.
You know you were saying something earlier.
Or member of about the president coming in with his budget later they used to -- cliche about this you know the president proposes and congress disposes.
I guess that's not the case anymore now -- congress that the proposals and the president -- Well that the president certainly bottom line and not setting a very good Tom John for for Wall Street certainly.
And for investors -- were interested in what is happening too.
Fiscal policy in this country.
Why is he being in your judgment well let me ask it this way.
What will be the effect of this process ends -- much like the last.
Well obviously something that the financial markets are not going to take kindly -- we could see some downward pressure.
Put on equity prices -- perhaps perhaps that's tolerable it's been a great year thus far.
You know eventually something has to be done at the budgetary -- in and what should it Lee.
Of the president his discovery that there is a great deal of resistance to was emphasis on taxes and taxes alone.
As the primary means of balancing the budget.
-- this this business spread.
Party today in bidding out of whole -- the idea there's wide support for a trillion dollars in new taxes.
My god -- they keep coming up with this stuff I mean -- what point does the national media say you know.
There is a reality here.
Obama -- appreciate -- issued at least conform to it here in in some fashion in your statements.
Well I'd say don't hold your breath for the media that.
Be jumping on well on President Obama about this -- it's not just this one trillion in new taxes.
You know we just got 600 billion.
In new taxes from the fiscal cliff and then there's all those taxes in obamacare -- -- gonna go into effect.
That Republicans anyway say well over ten years -- -- another trillion dollars I don't know how.
-- robust economy can be created out of this I mean.
That these tax increases which I agree that one trillion Democrats are proposing won't happen but if it were that would be -- to the economy.
-- -- -- -- I don't know with all these tax increases in the pipeline hole in the world do we realize that 3.5.
Percent average -- -- real.
GDP growth the CDO was predicting.
For the five years -- 2019 we've got to get this growth if we're going to be on track to move towards a balanced budget.
And -- the Ryan budget does that in the course of ten years but it makes a huge assumptions we pointed out.
We're talking about one point eight trillion that would be derived.
From the elimination of obamacare.
If that does not seem as I said -- it's not likely it's not.
Politically feasible today but once obamacare.
Goes into effect it could be that both the observable cost as well as a possible rationing of health care could create such an outcry.
That this program would be watered down substantially.
Pretty you agree with -- -- -- It be exactly I think he's right I don't think it's gonna be overturned obamacare is not but even though it's gonna be difficult to implement.
Now in order -- -- -- -- fifteen page thing the people have to fill out just that.
Get started in registering for Obama -- But it can be watered down that's for sure I mean it better.
Work or or -- and none of it didn't going to be around totally that the that's for sure about one point eight trillion you're not gonna get quite that out of it.
You're about to server -- well I was gonna say no we don't wanna overlook the fact the big problem facing the budget.
And -- major uncertainty facing the US economy is over the next ten years we tie Greece Turkey be growing by more than 3% annually and -- going to be.
1% annually to -- This unprecedented.
Retirement of huge numbers of baby boomers.
-- will conclude this gentleman with let me bring everybody up to date on the most recent comment by the president to ABC news.
And which -- had a -- paraphrase here that he's not interested in chasing.
Fred Barnes John wants to thank -- both the bear.
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