Power Play 7-25-2012
Campaign 2012 heats up over small business and foreign policy. Plus the fight over taxes on capitol Hill. Join the live chat...
- Duration 27:53
- Date Jul 25, 2012
Campaign 2012 heats up over small business and foreign policy. Plus the fight over taxes on capitol Hill. Join the live chat...
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And I'm not gonna create more markets for large businesses.
We did not build this country on our -- we built it together.
And of mr.
Romney -- and understands that but he doesn't understand what it takes to grow this economy in the 21 century.
All right there it is the president speaking in Portland Oregon the last night continuing the back and forth over how wealth is created.
How jobs are created in this country.
Accusing Mitt Romney of course of selective editing taking -- some key portions.
On his comments about how wealth is created and and on the economy in general.
Mitt Romney not going to be responding to that at least for the next couple of days because he is a -- he has promised that he -- not disparage the president of the United States in any way shape or form.
While he is abroad.
Let's -- -- Carl Cameron he is traveling with Mitt Romney's in London England right now where I assume -- your indulging in T and profits at this hour.
-- -- -- -- -- in profits fish and chips -- -- right Kara.
And listen don't believe that promise when when Mitt Romney's aides promise that is not -- disparage President Obama when he's overseas keeping with the -- that you know partisan politics is supposed to stop at the water's edge.
Are true he won't give formalized speeches with a podium and prepared remarks where he'll be explicitly critical of the president.
But it's gonna go -- interviews over here and the entirety of the trip is meant to draw very stark contrast between what he would be as commander in chief and world leader.
As opposed to what he says President Obama has been.
Here in England he will make the argument that -- special relationship that the United States and Great Britain has had since World War II.
Has not been as strong as it might be if the president the United States were more forceful in spreading American foreign policy worldwide.
And less apologetic mr.
Romney has criticized the president as have many Republicans for taking worldwide apology two -- there won't be any of that on this trip.
Romney will be aggressively saying that US foreign policy and the US role in the world is needed now more than ever.
From here he goes on to Jerusalem Israel the Jewish state where he'll be meeting -- Bibi Netanyahu the prime minister.
Who with whom he has a relationship that goes back literally decades.
Back when Mitt Romney was a graduate of Harvard and looking for work and Bibi Netanyahu was a graduate of the MIT the Massachusetts Institute of Technology also on the Charles River in Cambridge.
They were both recruited by the same company in Boston for work and they've been friends ever since and have often exchanged ideas and advice.
On a variety of policies and issues as they've moved through their careers.
Romney visits Israel he will go to Poland and that too is meant specifically.
To point out that in mr.
Romney's view the present -- United States has been -- appease -- Willing to bend to Russia and other countries and not spread the type of strong foreign policy liberty and freedom.
That American presidents prior to mr.
Obama in Romney's view have been more effective that.
So that's -- course sort of explicit.
In his itinerary and in the rhetoric well perhaps not as caustic as what you might have seen at the VFW speech a couple of days ago or rather yesterday and Nevada.
However that was how he launched this trip essentially attacking the president President Obama -- -- appease or who has weakened the US role in the world.
By not being willing to project US strength as much as Romney would be -- Couple -- is no accident actually did that Mitt Romney picked these particular three countries.
But that's right I mean that Romney aides say -- -- three countries that show.
Just how important the US -- the world really is obviously -- special relationship with London as we talked about -- And when he visits the Jewish state and Israel there's also political purpose for this that goes back to domestic policy he's very much hopes to impress upon Jewish American voters.
That they should support him because he will protect be the State of Israel.
And that's also true in Poland Poland is of heavily Catholic country.
And there are lots of polish American voters in a number of key battleground states and most notably Michigan and Pennsylvania and Ohio.
So by courting the Jewish vote with a trip to Israel and Catholic and polish voters with a trip to Poland.
This is both domestic politics as well as foreign policy all wrapped up in one.
And obviously mr.
Romney is making the case that he would make a far better commander in chief of the world leader than what mr.
Obama has done and as example of that some of it seems.
Kind of small ball politics but at the -- -- illustrates the point.
For candidate Obama went on a worldwide tour as he was running and brought huge crowds to places like the Brandenburg Gate in Berlin and elsewhere.
I he promised that he would visit Israel -- first it was president.
Hasn't but hasn't done that.
And that too will be pointed out that.
That Mitt Romney will say that you know president hasn't kept his promises to an awful lot of foreign countries and in some cases bend a little too much to the likes of Vladimir Putin and others.
Who have occasionally been quite hostile to some of the countries in Europe -- well stocks.
Carl thank you very much religion get back here and relationships and -- -- listened and what are.
Agriculture tally go to get -- I'll tell you oh yes I forgot you're in participating in the the -- as well this -- news I'm Carl thanks very much for your time.
Gentlemen let's let's talk to Bradley and -- -- trivia our esteemed panelists today.
Can Mitt Romney make of this trip abroad how important is it how ineffectual can he be given the fact that he does not.
-- that the powers of state at this point -- US foreign policy I think it's important for him to make the decision.
Because -- this he -- this is sort of -- is obviously in the business world he's a governor.
But he lacks foreign policy experience of this is an important first trip.
To let the American people know that he has to -- a -- -- well they handle foreign policy and the fact he's being received.
By the prime minister and the president and other important officials in Israel as well as in Poland.
And you get -- to offer in England because you -- the Olympics as well as.
A reception that he's going to be received by the government.
In England as well -- this is a good trip it's it's important what Romney says it's also important what others say about his trip.
As it proceeds and when he gets back.
-- or anything beyond simple niceties and in appearances that we can take away from the -- Not really I think it's it's is going to be effective trip for -- again.
Mostly because Americans haven't seen him standing next to a prime minister for -- -- energy.
You start to see you keep the visual is that's -- president right he's standing next of the prime minister of Israelis.
Standing next to a former president of Poland he's saying nice things about probably very positive things I would expect.
What violence -- doing policies.
It's more fit the -- -- it's coming back in London.
Again and it it it is a two for -- in London with the Olympics reminding people what he did so.
It's always -- sets much more important I think -- him on this trip and to get another dig in against Obama he'll let surrogates and other people do that I think this is.
More about him being on the world stage which Americans have not seen him.
In that time frame before they saw Obama and that in the campaign in 2008 it was.
This is stunning how powerful he was opened in -- morning about -- good Carl when this out it was a stunning images then candidate Obama at the Brandenburg Gate.
-- will it will President Obama use that that contrast.
To any effect.
I don't know -- it is a country of I don't know that people will realize -- don't think they're you know they're gonna be putting up pictures of vote Obama.
And done and Romney in these settings are looking at the different crowd size I think they'll be commentary about people like you make a lot out of it.
But I don't think it's gonna matter I think what's what's important here is that Romney is America's gonna see him on -- you know again and that's rural -- kind of situation that I think helps them.
We we -- -- repeatedly that that Robin will not take -- that digs ostensibly at the president while he is -- but he took a final parting shot just before he left at the VFW convention.
On a different matter -- national security leaks that appear appear to be.
Emanating from the White House -- listen in to a written Mitt Romney had to -- at the VFW convention.
It's not enough to say that matters being looked -- to -- just leave it that.
When the issue -- the political use -- a highly sensitive national security information.
It's unacceptable to say it will report our findings after the election.
Exactly who in the White House -- trade these secrets.
Did disappear authorize it.
These are things that Americans are entitled to know and they're entitled to know now.
-- the president believes -- he said last week that the buck stops with him.
Videos all Americans a full and prompt accounting of the facts.
And Brad just took a -- consistently says as I see what is the political component to it what kind of page can Romney make of this in the substance -- Absolutely and when you have.
A the very.
Liberal Democrat from the -- California boxer.
Taking off on the White Plains as Feinstein -- excuse me -- suggesting that this comes from the White House I would tell you after serving.
It's three White -- and having a top secret clearance and being in the White House that time we had.
The Valerie Plame.
League and end the chaos that was close within the White House to try and figure out who was responsible if the White House wants to find out who's responsible.
They can find out who's responsible.
The fact of the matter is common sense -- flies the reaction.
To these leaks by administration wants to get to the bottom of it.
It doesn't match their behavior the fact that they only see that they'll have reported after the election tells me that they probably know.
Maybe not for sure they have some inkling to believe that where there's smoke there's fire and it could come from -- We're at a time I want you to respond of that.
But no look I think there's it is I think it's clear that if I came from someplace in the White House I mean that's that's that's fairly obvious ideas that the but I do think it's -- -- gonna get caught up in the politics of Romney wants to keep this going for a reason.
The White House wants to keep it till after the election for a reason -- got the reasons here.
And but I don't think it's I don't think we're gonna find out until after the election -- And I think that's usually the geneticist.
-- we'll take a short break back with more after this we talked to congressman Ben Quayle about.
Tax -- -- up on the hill right after this.
-- where not just of the reports.
That banks were under reporting this reporting.
But the nature of the rate that again this is the rate set in law in London overseen by the British Bankers' Association.
And it's a rate that is an average.
-- constructed average of estimates.
-- -- pretty principally by foreign banks of what they might pay to borrow intend currencies -- very different maturities until there's we're we're really three US banks three of the three at that time glorious sixteen out three and eighteen.
But we were aware of the risk that the way this was designed create not just the incentive for banks to under report.
But gave them the opportunity to under a rock -- and that was a problem.
That is necessary Treasury Secretary Tim Geithner talking about the -- her scandal which is it just beginning to -- appearing as we speed -- up before the house financial services committee.
I'd love you saw today but the Washington Post had a piece about enough I can put on my reading glasses here's -- -- Crosby in the film my Christmas is when the trouble so yeah.
Can't read that this makes me just read a quote from the so Washington Post jesus' life over.
And where the -- nature's -- that it Tim Geithner.
Has said that he sounded the alarm for years go to regulators about problems with the benchmark interest rates known as -- but Geithner.
Who was then head of the Federal Reserve Bank of New York did not communicating key meetings with operators that British bank Barclays.
Had admitted to fed staffers that it was -- lie ever according to people familiar with the matter joining us right now is congressman.
Ben Quayle from the state of Arizona.
What do you make of this congressman.
Well look at the reports -- secretary -- Geithner.
Actually knew about them what was happening the resource -- sit with the -- manipulation.
He sent an email over to his counterparts in in London but then didn't follow up on it I think -- when he's talking about how he's the one new.
-- sounded the alarm well it was a very.
Muted alarm because nothing actually happened and there's so many things in the consumer world that are based upon.
Libor and in this situation you're -- -- under reported so that they actually looked at more sound.
During the financial crisis.
You know -- -- may -- it into how much importance lie ever has in the financial -- 3300.
The trillion dollars.
Loans and derivatives it and I understand -- are paid to.
To live the -- parade and was astonishing to me about this is the -- Is is basically.
By a series of the very very powerful banks -- it's not done upon.
Any scale -- tangible evidence.
But rather on the honor systems that make any sense.
Well yeah and that's the thing is that I've been thinking about how we could change it and reading to various ideas on it.
Some are saying let's go to a pure market based approach where you actually have to provide specific evidence on what you're borrowing costs are going to be.
Based on the previous -- previous week.
That might lead to more volatility but it gave you more accurate depiction of what the banks borrowing costs all our and -- then we can base it off of that.
It comes to us it happened too skinny skinny become it is you grow.
I think it will it depends on who knew what I mean -- think Geithner knew.
Did other people within different -- -- is no.
And did they not do anything about it it was obvious that Barclays from the reports and I've read the partners actually was standing in.
Higher numbers for what they're -- costs were going to be and they were the the dilemma -- folks and and Europe were saying wait this is really high.
Don't you think that you might be able to actually get a lower and then they re submitted it from a couple reports and I've actually read.
And so you saw some some collusion there.
Where that that may be they're working with the regulators and trying to make sure that.
They didn't artificially -- artificially -- keep their rates higher where they actually were.
And actually were working with them to keep remorse and there wouldn't be even more financial crisis because they thought that the banks -- actually in and dire straits which they work.
-- out of shift gears a little bit congressman as I know you've been very active in in your concern.
About this political attacks from the didn't in the year 2013 January 1 and only thirteen were looking at potentially huge tax rate increases of as much as 494.
Competing proposals for tax reform.
No -- as things stand right now.
We'll -- the senator is gonna be voting on a number of the proposals.
No they Harry Reid is trying to push a proposal that raises taxes.
On on small businesses and those who are making over 250000 dollars a year Republican House next week.
What we want to do is we wanna make sure -- the current tax rates are extended for one year so that we can get the fundamental tax reform was on the personal side on the corporate side.
We believe that that's the right thing to do President Obama you know -- years ago said that.
You know you never raise taxes during a recession what we haven't really gotten out of the recession and -- it's not a good time to be raising taxes on small businesses in the house is gonna take action.
Next week it's an -- vote I don't know how that's gonna -- gonna play out but it's it's pretty bad when you're actually trying to.
Dig out and having you know below 2% growth anyone actually tax those job creators that are -- Lead us out of this recession and looking at various statistics if we have that tax increases you know.
Decrease growth by a significant amount.
Congressman -- -- thanks very much for your time.
-- a lot of options.
Gentlemen let's talk about this prospect of taxed again it is it attacks on the wealth creators were tax on millionaires.
Well something's gonna -- something -- gonna have to happen.
Have aid if congress doesn't do anything I mean just the automatic stuff you have to see who could see frustration it's gonna.
Be a massive -- the economy it's going to be yet it's.
I don't know it's going to be taxed -- getting hurt her.
Or some other Armageddon.
There there are a lot of components that are trying to -- MacKenzie do we easy way to sort of your consolidated in some respects.
There's speculation -- here is that the sequestration is not gonna happen.
People collect these kind of cuts to the US military is such -- Time that's fraught with danger across the world.
Right but I don't think there.
If you don't if this is all gonna code and who.
Who gets elected in this election in what happens sitting in the U in the lame duck session in -- and -- I think trying to figure that out today.
Is tough because we don't I mean I really don't know yeah -- and talk about puritan and pilgrim everywhere sites and be shocked if things really got bad economic -- -- -- -- -- us -- -- fall out of -- between now -- November -- -- spectacular way -- you could have an entirely different congress in an entirely different administration we wouldn't -- Shocking to see big shifts happen and if -- you know or we could be sitting here with the with a Obama reelected and stronger.
Republicans in the house senate which means the polarization could be even more difficult.
To come to some consensus on.
Some sort of compromise after the defeats that he do that he suffered in the house Obama didn't show any signs -- that after 2010 and I'm not sure.
I'm not talking as a partisan here I'm saying I'm trying to figure out how this all comes together in a way.
We're both sides.
Can find some consensus and you've got.
A very rigid Republican House in a very rigid.
What's your take -- it well look it every presidential election cycle has consequences.
But this is probably most consequential in generations.
There's a difference now between nine days to -- Republicans are proposing what Democrats are.
And you've got a a huge game of chicken.
Between Republicans and Democrats who's -- blink first and I happen to believe the American people are gonna be the ones we're gonna have to step in.
And be the super legislature do well and determine where this is going one thing is for sure it's in nobody's interest Republicans Democrats anybody.
Kevin -- and again especially in tough economic times when only talking about individual tax rates corporate tax rates.
We're talking about the death tax capital gains dividend taxes so we talk -- out.
Taxes people generally just think -- think in Texas but these other taxes are consequential.
To an American recovery as a simple these.
-- On so we -- are gonna get that it is indeed in the fact that it falls on a lame duck congress -- is a little bit -- -- I think.
Everybody we'll take a short break back with -- congresswoman Marcy Kaptur to talk more about tax would get Francis.
-- message to America is very clear.
If you like the status quo gridlock obstruction delay vote Republican.
It should take a week to simply begin debating a bill I repeat.
Begin debating -- bill.
Our friends on the other side -- are practicing what could best be described as Thelma and Louise economics.
Let's just march the whole country -- off the -- And see how that works out.
Well -- perfect little synopsis of the gridlock we see -- there the opposing points of view and never the Twain shall meet at least.
You can you can -- and -- -- in those two -- joining us right now is democratic congressman Marcy Kaptur from state of Ohio I should tell you congressman before we get started here that my first day on the job as a TV reporter Washington.
It was a day you're being sworn in which was what nineteen.
82 wasn't something like that -- I remember standing next to you -- 83 and I were sitting next to you in statuary hall and I think it's -- all.
And I've been here you're still here -- amazing in -- and I'm still here which is even more mrs.
But -- -- have welcomed and what what's your take on the real democracy up there is there any way out.
I can remember -- when I was first elected and our speaker.
And democratic leader Republican leaders would -- to the president of the United States at Christmas time at holiday time.
And I hate parties glad that I'm glad -- both parties together.
Worked together ate together saying together.
It was a different era.
Times have changed.
And the atmosphere is -- uncompromising.
It's hurting your country.
When I heard the prior interview they talked about who's walking miracle off the Cliff Floyd you know Wall Street -- to -- off the cliff.
And those here in Washington are trying to help with the pieces of Humpty Dumpty back together again but it's very difficult.
When you have a lending a stalled at the local level in places like Ohio I represent -- region.
-- that extends from Cleveland Ohio through the rain sandusky.
-- We just got our property valuations in the mail.
And values have gone down.
By anywhere from 25 to forty to 50%.
People are underwater on their mortgages thousands of homes have to be removed.
And I think Wall Street -- to develop some conscience.
On what they've actually done.
To the rest of the country in Washington alone can't pick up all these pieces we have to have more prudent lending.
We have to have a more responsible financial system in this country and we need prosecution.
Of those who brought the republic to the edge -- -- on the subject of of lower home values in the foreclosure crisis is is one of them that insurmountable -- it seems to me on the one hand your party is suggesting we need to rearrange.
Long race and and help to beleaguered homeowners.
On the other hand many conservatives believe that we need to let this thing bottoming out so that the recovery can can resume.
Again never the Twain shall meet.
Well I have a bill HR thirteen fifty that would hire 1000 additional FBI agents to bring.
I -- justice.
We need to have investigation these teens were set up on main street they were set up on Wall Street when six institutions control two thirds.
I'll be -- for this country it's too much power in too few hands.
The whole government budget is only 20% of our GDP only 20%.
80% is in the private sector when the private sector fails us which they did big time.
It's very hard for the government whether -- -- reader Mitch McConnell to try to pick up all the pieces of Humpty -- we need to be competitive banking system.
We need a prudent banking system re established in this country we need normal lending.
At the local level I invite you want to Ohio bring your program to Ohio we'll show you what's happening on the ground there.
And we need prosecution.
So that -- this isn't just -- bottom now is that those who brought us to this point need to change the way they be paid so.
You -- prudent standards across this country.
Real real real quick -- around -- time we've got all kinds of regulatory agencies in effect already and yet we're seeing evidence of a new scandal the -- scandals in the in the face of all these regulatory agencies -- seems to -- that the bankers.
Are one step ahead of the regulators that's always going to be -- -- -- -- -- Finger on the red -- there they just they just rotate down from New York fed and they go back up there to Wall Street.
We -- my bill to create equity among all the Federal Reserve regions but our banks have a greater voice.
-- we've got to go flat -- heartbreak you thank you very much time great -- All right gentlemen that you heard what she just said there and again I'm struck by.
The difference and perspectives -- she talked about the -- the housing problems the the foreclosure issues and the two parties have very very different ideas on how to solve this again.
And that's what makes it's so difficult about seeing how they come together come together right now I mean look what part did -- interest in the days when.
-- the Republicans say if you don't extend the bush tax cuts include everybody.
We're not going to happen over our dead -- -- and president says if you give me a bill with people over -- and it.
Make over 250000.
-- veto it so.
Over my dead body in in both sides.
Accuse the other wonderful in the nation hostage so it's.
Mean that's literally -- hesitated to visit take to break this kind of gridlock and other historical examples of it being broken that might.
So -- -- I think it takes leadership.
Who is willing to work it and enough sub contract his leadership to others like to Lucy and reed the president has to be engaged in -- system but.
When I handle the president's schedule.
At the schedule was balanced to reflect that -- the differing views and making sure the president -- the time necessary.
-- meeting with a leadership.
This president has not met with a leadership in months to shake his head he is not how I can I mean his jobs council.
It ended in -- year so the president has not invested the time effort or desire.
To tackle these problems from 88 after -- -- standing the strength.
I any I think.
Look we cannot argue about the leadership on -- on both sides of the of the -- -- it till we're blue in the face what's really I think going on here is the leadership is being on on both sides being hung out.
By the fringes of there of the party in election year.
That you don't Boehner and it means -- Has the Republican group of Tea Party and came in in freshman.
No -- banners there's there's hasn't exactly don't know exactly if you ask that -- attached to them and they don't want compromise they don't want any compromise on anything in the same thing starts to happen with a bomb in the at -- -- leadership on the on the democratic side.
From from the from you know the liberal base of the Democratic Party and that's why thinking you get this like no compromising an election year.
Com and it's it if they're everybody's being held hostage by by I think people to extremes and involved parties right now.
And sort of fear of god I'm on the progressive side of the of the Democratic Party -- -- I understand.
You did did the same thing is on why -- you're gonna -- is interesting because there's people on the left and the right Gergen very upset about that scandal on what it to right.
-- -- excess criticism -- together against them in the way and it's much.
Easy to tackle the problem is caused by somebody else in England that in this is -- that's up to our own problems will unite against the problem in England.
And it's fight about the problems there well John and I'm glad that we solve all the world's problems in this and a half -- thank you very much -- and Joseph Trippi.
Great to see it written here and I thanks let me fill in for Chris Arnold today on power play.
A more coming up tomorrow -- -- see that.