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Yes there is no question it was a circus at times.
Send the message around the country and the globe it the United States might in fact default on its obligations for the first time in its history.
But in the end.
Compromise one out and an agreement did we believe strongly is in the interest of the American people was achieved.
That was white house Press Secretary Jay Carney with -- double reverse bank shot of brinksmanship.
And this is power play.
Thanks for sticking around with us and we are joined now by Fred Barnes and we are very lucky to have you -- on this.
As I was saying -- previous -- either historical meaningless data pentagon.
Your point of view.
And thanks for being with us to be -- right now.
In order to prevent confusion we have to keep our Barnes is separate.
And to that end we have from the Fox Business Network.
Peter -- who was over at the White House today.
Tracking all of these things for at the end.
Brother -- how we doing today.
There and while they had a brother barnstorming.
I will I will he's got your mail.
Yes He does.
And I am I'm happy to -- it appears to have Fred Barnes.
That's right that's right so we just heard from Jay -- yesterday talking about.
How this was gonna be -- two markets and that investors and Americans could move forward in the economy with more optimism.
Now that there is this -- deal.
That's moving its way through congress they soon to be voted on in the senate.
These these are marked new markets agree with him.
While markets didn't get to for climbed about all of -- that -- way however.
Gesture in the last week or so as we got closer to this deadline.
We did see it start to affect some of the shorter term lending markets.
-- we call the overnight repo market I wanna say that some really smart.
They've been rushed to their Wikipedia -- look that up but.
Overnight short term lending started -- a little more expensive.
The cost of the for the federal government to borrow I would short term treasury bills started to get a little more expensive.
That the rates went from zero to like get -- a tenth of a -- of a percentage point.
-- for about a week so so we did and and the market get on -- the equity markets were down the Dow was down 500 points last week so.
There that markets started to get concerned about it but definitely.
Traders that we're talking today on and on Fox Business.
Are happy that this is going to be settled so they can move on.
But the economy stinks right.
And an RBI the economy.
Is in very bad shape obviously we got that one point 3%.
Initial reading on GDP for the second quarter that huge revision down in the first quarter from.
Almost 2% annual.
Rate of growth to about a half a percent.
In -- there is talk here.
And I hate to say it about a possible doubled that historically.
When you see -- GDP.
Below 2% or couple quarters in a row that's that's not a good -- now.
Everybody's hoping that this all this was caused by temporary things like the disruption -- the supply chains because the Japanese earthquake and because of the spike in oil prices and so those things have settled down.
And everybody's got their fingers crossed to see what's gonna happen next but.
There was all there also troubling signs that.
That consumers are really standing pat right now we got that.
Personal spending number this morning from the government that was flat.
Savings -- up.
People are scared so they're saving more money that means they're not spending and -- consumer economy.
A lot of economists are downgrading their economic forecast for the second half.
Our final question Peter are we likely to be C a downgrade of federal debt from.
Good ratings agencies they were talking tough about it before take out a way to xxx now they seem to have softened on that.
Yes very important is that as well the one hanging out there it -- it really had to see four trillion dollars.
Where the deficit reduction in any deal out of Washington.
We're not gonna see that right now however.
Watch for this you heard it here first on your show.
That trillion dollars in savings for winding down the lawyer is hanging out there.
It's low hanging fruit nobody -- grabbed at.
The Congressional Budget Office and -- and they are gonna come out with their mid -- budget reviews shortly.
And you could see a half a trillion to it -- trillion dollars and it's a lower projected deficits combined know what they're doing up on the hill.
That get -- -- kind of three and a half trillion maybe into the neighborhood of what standard -- is looking for.
And that might be out standard -- will need to hold off on a downgrade at least.
We had in the Spanish American war and then you're probably way over the four trillion all right Peter -- we are grateful to you have a great day.
Our guys thank you thank you.
I Fred Barnes.
Markets didn't seem to care Peter was pointing out we kept hearing about the bond vigilantes and all of this stuff that was gonna have they didn't seem to care -- knew that there was not going to be a default and ultimately.
The debt limit would be increased Chris you knew that I knew that -- ended and it's out one way or another it was gonna guys with the cumulative years what a big problem -- -- -- isn't it.
Frankly no one has talked about and that is.
You would get Peter mentioned the downgrade of the economic growth in the in the second -- it can lower in the second quarter than expected downgraded by an historic come out.
In the first quarter end and -- last quarter of last year was that -- growth was a reduced.
You know what this means it needs far less in tax revenues coming in that had been expected that had been projected -- The economic growth projections of the administration or something like three to 4%.
If for this year and again that's gonna get anywhere near -- -- the deficits going to be bigger and bigger -- But you know hundreds of -- -- you know 8900.
The black -- being in this bowl is definitely that that is the revenues continue to drop.
And you get down -- less and less tax income coming in all these phony baloney infections and everybody I went into this you go out the -- that they do.
The other question -- is and we had it's the spirited.
Testy debate in our first segment about plus about who is to blame him ultimately is that is what we do best in Washington is apportion blame.
But who is to blame for the fact that this went after the eleventh hour.
It went down to the eleventh hour because the president needed it to go down to the eleventh hour so that He -- -- liberals to do it and am I getting that right -- part of it but.
You know -- -- -- a big fight in Washington it always -- got to the eleventh hour because that's when the compromise -- -- many people won't.
Limited agreed to compromises if they think they can still get more.
But if a -- from now are you gonna have a a debt limit increase not happen.
With the unknown but possibly very harmful economic results you're gonna compromise it just works that way and why shouldn't.
But normally we're not looking at it it was such scrutiny as we have over the in this -- -- -- fun.
And you know the other thing we know of course is that August 2 was the deadline that the administration made itself to put an arbitrary He could -- -- the second -- -- -- -- the -- -- -- -- -- some -- here.
They take this as the day.
To do it and I help Boehner and it helped Obama get their their teams together sure they had to pick somebody reasonable date and that this was as good as an --
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