Can We Sustain Our National Debt?
Sen. Kay Bailey Hutchison weighs in
- Duration 5:39
- Date Jul 17, 2011
Sen. Kay Bailey Hutchison weighs in
Also in this playlist...
This transcript is automatically generated
Sixteen days left until the federal government exhaust all borrowing authority one GOP senators working to make sure members of the military still get their paychecks.
Joining us now to tell us more about her plan -- Texas senator Kay Bailey Hutchison senator thanks for joining us this morning.
Thank -- -- I wanna start with this August 2 date there's been some debate on Capitol Hill about whether or not it is truly the date that we run out of any new measures.
If for extending our allowance to -- -- more money how do you feel about August 2.
I don't think August 2 is the drop dead day.
But it is something.
In August maybe later in August and I think all of us want to try to come to.
Some agreement if we can long before the drop dead day.
If we get to that point that is not going provide the long term answers that Republicans are looking for.
If we do get there how much power do you believe the federal government the treasury has to prioritize.
The obligations that we -- financially.
Well complete priority.
Complete capability unless congress.
Passes a bill that is signed by the president that sets that priority.
And that's why I'm trying to pass a bill right now that will assure that our military people don't even have to worry about a late payment.
We want to assure that if they're over in Afghanistan are Rackers anywhere in harm's way that.
Their families don't have to worry about paying the mortgage on time and I understand that might be one of the few areas right -- on Capitol Hill that you actually have some bipartisan support.
I think and and so security would be covered because the that comes from a different funds anyway so.
You have Social Security covered you you can do this as a first priority and I think we should.
I don't think people should be worried about payments in the categories where it is a life or death situation.
But I'm quite sure the Republicans understand just how well it works when Democrats talk about the fact that may -- those checks won't go out.
Do you think maybe getting some this legislation passed we've taken that conversation off the table.
Well it should we shouldn't be having the president saying he might not be able to send Social Security checks out he can't.
He absolutely can it's a different.
They know that so I think it is a scare tactic.
Well we need to do is roll our sleeves and get the long term answers we need to save Social Security.
By extending the age.
Ended three months a year that's my proposal.
We need to assure that people can see the cuts and spending even the Moody's and standard and poor rating agencies have said.
Not only do we want to see the debt limit res but we want to see four trillion dollars in cuts or we might lose our credit rating anyway.
I ask you about those so warnings from those credit agencies how much of a responsibility do you feel and that matter because they're not only talking about the fact that fundamentally and -- -- wise we have to come up with solutions.
But the fact that the uncertainty in the meantime is what's seems to be rattling down an -- is sparking some of these latest warnings.
Act as a lawmaker -- on one side of this how much responsibility do you feel about getting a resolution so those downgrades don't happen.
Think we all want to assure that there is no default we think we have.
Some time that we need to solve it before the jitters said -- I think there are few more scare tactics going on right now -- are warranted.
I think people like to quote that the rating agencies might downgrade American.
Debt ratings if we don't do something now -- raising the ceiling but.
But people don't say is we've got to cut spending to keep those ratings up.
And we don't want inflation to set -- and that's what would happen if we don't cut spending and we don't aren't able to see a way forward.
And it quickly want to ask you about the plane that's been floated by your colleague the top Republican there in the senate Mitch McConnell.
That essentially puts the onus of raising the debt ceiling onto the president.
He could do that apps and some current provisions that would -- Congress to override him but it would take two thirds votes Republicans don't have a supermajority in either house so.
For a lot of folks and there is a question about why senator McConnell would propose that when they are still negotiations going on.
Do you support that plan and what do you say to critics who say it's a bit of a sell out by the GOP.
Well I think what senator McConnell was trying to do is avoid this crunch and he wanted to do something ahead of time that said there is a fact -- position it's not his first choice or second choice but.
He's doing what a leader has to do and that is show that in the end.
We can do some thing that none of us light but will avoid this.
Debt ceiling not being able to have to be addressed now -- -- say that I would want to have a pledge signed by at least 41 Republicans in the senate that we wouldn't vote for appropriations bills that go above 2008 levels.
Because that would assure that something would be done so if the debt ceiling is raised and we have a -- from at least 41 Republicans that say we will not vote for an appropriation bill that doesn't go above.
That doesn't go below the 2008 spending levels and then you've got something that.
Is more concrete on the side of cutting spending right senator Kay Bailey Hutchison always good to see thanks for your time today.
Thank you Shannon.