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You may buy time and friends on Wall Street but they don't buy votes for main street because.
Folks on main street are worried that if we don't get our debt together.
When do we get to where Greek is right -- right now.
Who's going to bail out the folks giving the bailouts joining us now is the ranking member of the Senate Budget Committee.
Senator Judd Gregg from New Hampshire by the way he voted for the bailout and he is not.
Running again this -- so he's free to say whatever he wants good to see against senator.
Thank you -- me on how close are we to we're Greece is now.
While we're on a path which will go to where Greece's there's no question about that if we don't adjust our.
Present financial house -- we continue to spend much more than we take -- We'll double our debt.
That's projected will double our debt in five years in -- within ten years.
Well essentially be -- creases in about seven years so we know we're headed in that direction of us -- do something about reducing.
Level of our debt and reducing the level of our spending.
Now Greece tried to hide the truth for a long time they -- a lot of the -- -- in fancy accounting and they apparently got away with it for -- -- but eventually the truth caught -- Now we do some of that fancy accounting to I know we have a lot of unfunded liabilities that don't show up in our debt projections etc.
When and Howell does reality slap us in the face.
Well when people stop buying our bonds.
When they tell us that they don't have any confidence in our debt being -- And they forces to pay -- much higher interest rate something that's unsustainable.
And they essentially say do.
Those of us the United States is trying to sell -- in order to finance our data operations of government we don't believe you can repay that debt or can repay it.
In a way that makes us want to buy -- get at a reasonable price.
So when do you think that'll happen when the people actually balk at buying our debt.
Well that's hard to say but I.
There's some pretty significant warning signs that we've already seen for example.
Moody's said they may downgrade us they've said they've -- put us in a special class with the UK.
China has said that they're very concerned about where we're going of our debt burden and the burden of of our spending in -- excessive deficits.
And most interestingly.
Just four weeks ago.
Warren Buffett -- you get that went out at a lower rate of interest than the US treasury did.
That's a staggering event because it means people have more confidence that he'll be back pay that back -- -- that the United States government will pay them back.
So the warning signs are already there I.
I guess of where on this course -- we continue on this course we're looking -- maybe maybe the outside ten years and I think probably closer to seven years before we get.
Before we hit the wall so to say.
You know taxpayers and and voters in general the general public in America have we have good common sense -- common sense and they understand.
That what is being done now is unsustainable.
That's one reason why.
Rather than being in favor of bailouts -- their bailouts -- here or even if they're abroad because some of our money through the IMF is going to.
To the Greek bailout.
They say forget about we want -- fool me once shame on on you fool me twice shame on me.
What we don't want to believe these governments anymore why should the American people believe us.
When we say that we need a bailout to help us in the next financial financial crisis.
Well actually they shouldn't and we're gonna -- -- passing -- -- fairly soon which won't allow any bailouts of banks.
That are too big to fail and they're going to be allowed to fail.
That's one of the good things about the financial reform bill -- passing through the senate here.
But the bigger issue quite honestly is when do we the American people step up and in -- -- were simply demanding too much services.
More services -- we can pay for.
We have a fundamental problem here we've got a popular retired population's gonna double double.
In the next five years we're gonna have over 35 million retired people to seven million retired people we promise that retired population a huge amount of benefits.
Much more than we can afford to pay as a society.
Without either dramatically.
Increasing your tax burden on working Americans the younger Americans in reducing their lifestyle.
Or inflating the economy and reducing the lifestyle of younger Americans.
We've got to step up and face the fact.
That we've got an entitlement tsunami hitting us in the -- have to step forward and make some tough decisions on how we control rate of growth of entitlements.
And not only are we not doing it or aggravate the problem the health care bill that passed the senate passed the house side by the president.
Added a brand new major entitlement.
Which we know we won't be able to afford and took over trillion dollars of savings in Medicare which -- -- to make Medicare more solvent.
And spend -- on that new entitlement.
And just compound -- our problems in the -- years for our nation.
Well you mentioned tough decisions tough decisions and beltway politics don't often go together so we'll we'll wait and see when that happens but finally I just gonna ask you about.
Senator Bennett losing out in that primary in Utah of course he like you was in favor of the bailout stood by his decision.
Do you think that that politicians who were in favor of the bailout are going to be taken to task for -- at the polls.
Well my view is that we did the right thing and actually we're getting money back that we spent on TARP.
-- interest and we stabilize the financial industry and as a result we didn't go into what was probably going to be a depression.
And we weren't we didn't you have a little bush of our financial structures nation we we do know I mean it well throughout the financial -- and I'll probably I would admit and correct them.
That the problem is I mean clearly clearly would have been at a much bigger price to pay -- in the financial calamity no doubt.
Some big instant everything you like it and others -- has gone down but the -- the voters still don't buy that.
No they don't it's hard to explain the way I describe it is if you're driving over bridge and the bridge is about to collapse.
And somebody comes along fixes the bridge you drive over it doesn't collapse you know he -- -- -- fix it well that's essentially what happened.
Now we are getting money back from -- -- interest we're gonna make money it's.
Taxpayers gonna make about forty billion dollars on car.
That's pretty good.
So they keep using the money coming back as a slush fund.
Well under the law they're supposed to -- -- -- reduce the -- the deficit -- put that language in myself and hopefully they won't do that and we're trying to everything to keep them from doing that TARP should be ended as of now because we don't need anymore.
All right senator Judd Gregg by the way what are you gonna do when you were -- retired from the senate and he plans.
Whatever that whatever my wife tells me to Africa are at the good stock -- I'd go for that as well senator thank you very much.
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