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Good morning I'm Doug -- on -- my friend.
Friends and colleagues Pat -- and John globally and we are fortunate to have.
Both in studio with us.
And we are political insiders -- -- many of you know that we had been campaign insiders but now we are.
May not seem -- -- the campaign but.
We're into the world the politics is to -- as opposed to the world of Hugh Wheeler political campaigning so will we are here to do was to analyze.
Will wise what's happening.
In Washington and around the world what -- the political implications.
And I would tell you with what's going on with new appointments of the administration but more particularly.
With the so called fiscal -- And the negotiations negotiations there aren't.
We get to without fear or favor.
Inside the process to tell you why people are doing what they're doing and more importantly what it means for our country.
-- will begin with a sound bite from John Boehner I'll start.
Then with a brief introduction or -- my own thoughts and then turn to -- job.
-- -- politics -- this town that this is a very carefully designs that are reforms and if Republicans.
Would like to go beyond these reforms -- they wanna do it differently they should tell us how they wanna do it right now I would say we're nowhere.
Period we're -- Other we've put out serious offer on the table by putting revenues up there to try to get this question result.
-- but the White House's response from the virtually nothing they've actually passed for more revenue than -- -- and -- him for the whole whole entire time.
OK so we got both sides from Tim Geithner and John Boehner.
The Boehner position is we put an offer on the table Republicans.
-- position is you're asking for almost twice the revenue you've asked before.
In taxes stimulus money.
And you're counting -- spending cuts cuts that were already in the so called -- deal.
So we're at political square -- offer a brief introduction and then turn to -- -- my own take.
Is that President Obama feels he can't lose.
And what I mean by that he is if there's a deal on his terms that's a win it's a win for the left wing of that Democratic Party it's a win for the president it's a win.
Period and that's what the president is.
Looking for he's looking for victory his view is he's negotiated in the past.
It hasn't produced results he feels that there's no point to negotiate if you're not gonna win so -- better to stick to your position now.
Negotiate and you don't get -- deal.
There are consequences.
And his view I think in the White House view is if we go over the fiscal cliff two things happen.
We raise a lot of revenue taxes on upper income people are increased which fulfills his mandate in his terms.
But taxes on middle class people are also writes now you could say if you're raising taxes on 98% of the populace which is what that would.
The in addition to do 2% that are wealthy isn't that a loss for the White House.
The Republican brand.
He's in such trouble.
And has got such problems.
That the president and his aides are confident that if they go over the fiscal cliff two things will happen.
Some on the left will say that's good.
And others will say serves the Republicans right for not being flexible so the president in short believes he's in a win win.
Position hangs his posture and the Republicans as you could see from the -- comments.
Are sort of frustrated they don't have a plan they don't have an.
Set up policies -- all that which emboldens.
The president John I agree with every word you said except one -- sir there's -- that to me there is one way the president can lose if he lets it go over the cliff which as we go over the cliff.
And the markets and the economy react very badly but we do go back towards a recession.
He will then got a lot of the blame not just the Republicans that could hurt.
Could ruin and I must tell you that -- an -- -- pat and second when I must say I'll offer my judgment job.
I believe in the short term.
-- almost certainly he wins.
Look book which we live at -- world that doesn't operate day to day hour hour even though it seems that way.
And I believe in the long term we go over the cliff.
We run the risk of exactly what you're talking about a recession downturn of the markets he's playing political chicken with the American economy I think what he's doing.
Personally John is reckless.
And imprudent but you know what in the world of zero sum politics.
I think he sees a different -- -- in Houston yesterday which is exactly right in the land of the blind the one eyed man is -- so this is all -- This is look we have a militarily you view military.
Historical context for us.
Who were considered did there to really dangerous and in in warfare one is when you win the hubris and you overstep.
In the other is in defeat and retreat.
What do you can work for you in order for you can fight began over whether you've -- and sometimes the law and on that -- psychological very close.
The difference between 1914 France which recovered at the Mars in 1940 France which collapsed.
In the -- the same German onslaught free fact of the matter is the president is pressing his advantage because the Republican -- disarray in retreat.
They have no mess.
They have got to find a way to pull themselves together the Democrats are pressing because they think.
It in the end and some of them by the way what do you go over the cliff if you said -- Because now that revenue -- -- it that if they can blame the Republicans get more tax money from middle class people spent on government.
You know right then they -- very -- and they proposed more spending already -- look this whole thing is like is someone centro and Harrison.
-- got better terms of that from Max but the problem here.
The Republicans need to take the horses home.
The the -- but here's the thing for the Republicans.
They're not only additional -- you have they're they're falling into the trap.
We choose sides of -- -- have said it is the old adage.
It's happened in my parlor said the spider to the fly on there's McConnell runs head -- into would you describe yesterday's third spring here.
Throwing red eagle on the third rail of the real bottom from which is a problem public to Medicare -- -- they have not moved to crystallize YouTube said.
Dog which -- -- Simpson -- here somewhere mobile except.
We'll do these cuts we will give you revenue.
In return for your big new leadership you take the leadership.
You're the president on the cuts were ready to see them do this but it won't talk about the -- -- but I do wanna get to this I believe.
There -- a moment -- this thing can now turn.
Because I think the president is terribly over reach but so far the Republicans don't seem to get.
-- think there's.
Way out for the Republicans.
You talked about it yesterday yeah I mean the first fall I think first -- gotta get it got to get everybody who's negotiating.
All negotiating on the same page for the Republican and actually I don't like some mutual Laura and I while senators and congressman normally don't talk to -- -- but McConnell and Boehner.
I would hope are talking to each other about this thanks so they have a somewhat unified strategy on the -- And banners got to be sort of in the lead on this for Troy rubs -- -- but he is the speaker he and they have the majority so he needs.
They've got to have a game plan on -- -- it looks to be elected just making it up as they go along now we took what with a three of us talked about yesterday I've thought about it.
Doug you said pro growth.
Never hear why are we talking about that the real -- or budget long term budget deficit.
Is growing the revenues to the federal government through -- growing economy that is the only way out.
No one ever talks about Obama doesn't talk about it.
These -- we need at some growth measures in the tax reform.
We -- send -- -- for spending restraint.
And we need this thing that you came up with -- slept on thought about it the idea of having a vote on.
The president's grab of the debt ceiling power away from.
Provision that congress does stuff like that that would be a huge blow to Obama they would vote on that this week and the Republicans.
And -- it's called making game -- he overstepped as Roosevelt did revolt over stepped on court packing 37.
-- -- 61% of the vote the biggest landslide in American history.
And he was -- Barack Obama is not god and he's got 51%.
But he's acting like -- 61%.
2010 he said.
What do you want 2011 and McConnell gave it to him.
No more -- on the debt ceiling before the election why because it hurt him so bad.
Even though when this goes to your point -- 2011 yes -- Republicans -- the living daylights beat out of them for what happened in August deservedly.
In Obama took the real political it is we saw on the turner district Nancy -- district -- Republican.
Race in Vegas Democrats usually win those all of those special elections and -- the president by September -- popular.
That's when they decide to go -- -- There's some thought that he is now overstepped this notion he should -- gave himself the singular power.
To raise the national debt is -- -- is an inconvenience.
Which Wall Street supports him doing probably another -- The Republicans wouldn't be -- on the bright side of being against Wall Street.
But he is.
This is a weapon as a minister who decided -- he should have you absolute power we apple refused this is an issue we take in the country this week.
In -- votes in the senate now if you were put Democrats like.
But it blatant merry land -- indeed David Pryor and others on the -- on voting to give all we the president.
This president particularly the power to unilaterally breach -- debt -- so we can.
You accommodate his spending -- The answer the country Democrats care about this issue it is a constitutional.
The country's futures are -- led into the but it's about a definitional issue it's the teaching moment and -- Asked about another definitional issue John.
And we'll put Grover Norquist off the tax -- how does that enter into this.
And get little -- Grover Norquist are right now he's on TV yesterday talking about how all the negotiations that are being.
Down on the debt ceiling should all be on television they should be NC spent.
Why do we -- so much importance.
To this -- never been elected.
Doesn't hold a government job I'm stunned over the -- I know the answer is the left in the media loves putting him out there because it.
Royals the right and they're all upset over the -- -- Also he's going because he is who he is perfect for them this is -- -- This is a -- says you must do this you -- remembered from the government there against all taxes were against it.
And and when he's not by the way encouraging.
Republicans not to be -- Islamic extremists but that's another matter.
But but what woman -- which is overrated in the answer is they need to teach him right now you need to have the reason I'm Saint Bernard.
A party has to have something to fight war.
This is the Republicans cannot do growth which they need do they should at least be -- systems and mobile but this ensemble did not do taxes and the -- that -- -- -- that we have to take a break but I wanna -- Quickly for our audience will come back and we'll talk about.
Appointments Susan Rice like but patents on are basically saying.
Get off your inflexibility about taxes but most of all develop a plan.
We'll be back in about thirty seconds with political insiders.
I didn't Doug -- I'm back with John -- -- and pat can doubt.
I wanna read before we turn to Susan Rice and the guys -- wanna -- read any message we got from.
-- -- I'm more interested in what new cliff they will come up.
Was so that we can be right back here in six months having the same debate again and let me.
Slice that -- him what Johnny -- is saying is look let's assume they come up as I suspect -- well.
With -- -- -- gas framework at the end of the month and agreed to do deficit reduction -- tax reform next year.
That may satisfy the political need to avoid sequestration.
It will not address the long term needs for financial reform and John I'm curious what you take him -- -- Well I think it's he's well named he's the sage -- show because that was what you said last week we were on together that.
This is they kick the can down the road scenario coming here where they're just gonna do enough to avoid.
-- self made collapsed this guy doesn't have to happen on the 31 they made it up -- -- -- -- debt ceiling has anywhere to go into the job a year ago -- so why do we think they're gonna do their job now and not say act.
Let's put off till may you know they could do that -- Pat had you responsibilities.
I agree Ruben Johnson and I think he's right I think that this is it politics involved in tactical and many -- You the president gets -- but he won't.
These these people are not serious about what -- good or bad for the country and anybody who thinks so that they are believe me they're kidding themselves.
Ours is old Washington insider political ambitions and still win over Washington.
Political ambitions job.
We'll Susan Rice -- the next secretary of state.
A week ago with you sitting on our show I set I thought she would now I thought McCain and -- on the Sunday shows a week ago.
And then she went up to the hill.
And the thing only got worse so I I think I still think Obama wants to name her.
He will wait to get over this fiscal cliff thanked and taken -- -- look and see if he can get her confirmed.
Even though the senators are ready for John Kerry one of Iran.
Would you suggest they do -- If you were advising the president would you tell him.
Two point why you know I I really thanked us I think this through using the word arrogant for -- re elected president applies shall hold them.
And he's not gonna have senators tell him who he can have as his secretary of state if he wants her.
He may be getting his back up over her and that's why she got her back up to the senator she sat in there and said.
I know I got the big dog behind me and I'm not gonna let these guys walk all over me and that definitely uses it well we'll similarly.
I mean I think she's.
He isn't he has the big dog backing her she's also -- -- which ordinarily arrogant and combative.
And also she's running around with his card I talked about yesterday.
-- if you attack me it's because I'm black and a woman as opposed -- -- the -- the it will allow myself to be used -- -- -- -- Clinton to make -- restored he -- president reelected she is not qualified now to be secretary's day.
And they did nothing to -- see confirmable.
Well the question is that's a question doesn't look good -- me.
But I think the president would you said John about the fiscal cliff is let me win that -- -- -- -- -- who writes down our -- I think that's what he wants to do we will see whether he gets -- it right now he doesn't want John Kerry.
Being the imposed on him.
And not you know and I guess you'd like to from the debate tonight from whatever makes -- jogging very they carry the bodies you know how to dress how he's feeling his oats are ones.
In the -- -- ball abuse DO TSA said he would risk to filibuster -- that the Republicans.
Would risk if they'd better be able risk a filibuster better able fight for something.
In she has that story in the Ghazi is an outrage in the but we're not for the fact the third player the true pardon the expression.
Elephant or bulky in the room.
Which is the media.
She wouldn't even be this possible.
Are we done John talking about -- guys -- I'm not if -- here and not if she's nominated then there will be afraid the confirmation hearing will be the public hearing that we never had on bank Gaza for the -- Americans know public hearings and no explanations.
What kind of country we come to you know but the shores of her being nominated that I think -- is is not gonna have a big I I just put that great all -- -- You don't sometimes you must act in the interest and your nation.
There are four dead Americans this isn't about politics one of the men ambassador one of -- -- -- -- the first one.
I swear to god knows what nobody -- killed on nine along Woodward were still alive this never would have -- -- -- And he was someone I say that I mean what Bob Woodward's in the tank to shut up -- god keep it tells you what's wrong with the media what a statement to make that forty years I want.
I really do something that we on political -- only occasionally do but I feel that I can take a little license today and do.
Which is engaged into some self congratulation you'll.
Give me license for thirty -- basically what we like I so I didn't interview with Peggy Noonan on Saturday.
And she reminded me of something that I had said.
-- with him on.
September 12 at about 10 in the morning.
And she said boy this video is a real problem we've got to find out more about the video.
And figure out.
What was in that video that so sparked outrage in the Arab world particularly Egypt and Libya.
-- -- -- wasn't a video it was al-Qaeda.
And she looked -- now acknowledges what are they thinking I was either reckless or imprudent or just plain wrong.
She's very kindly and very graciously acknowledge that.
Yes I was right.
And I what was obvious to -- -- and it was obvious a lot of people this is not a spontaneous demonstration -- -- I was.
Then why don't we nominate -- -- -- have a brother had dug his head of the CIA and I don't think candid -- point he's had enough.
CIA -- but that raises a question that I wanted to -- of both of you.
This remaining time we have.
Who gets treasury.
Who gets defense how will this lineup shake out -- I think defense Leon Panetta finally goes which I think is in 2013.
And by the I think he is a very good public servant.
I have great respect for him but I think he's gonna go and I think that's weathered leaking out Chuck -- former senator Nebraska a Vietnam veteran -- hagel -- -- hagel -- he's a Republican and he can sort of the president can say I've got a bipartisan foreign policy team plus I would have a Republican take the lead.
On the budget cuts which are coming in the Pentagon that's that one.
Jack -- -- chief of staff used to be the budget director for Obama -- odds on favorite to replace Geithner.
Yet he's being audition now during this basically -- he did yesterday.
To be Treasury's take you once again turning inward and outward no -- balls.
Know where's your ball are you -- no way no you don't we're not having anyone like that Chuck Hagel problem is.
You never know -- chuck people who -- through injury right now he has transformed into a very cool we get any outsiders.
Make some sort of -- are two critical.
The only thing the president really wants to cut its defenseman.
Are you -- -- having a Republican who'll take the lead for you who's a veteran is a wonderful lotion.
There and then and then I think Daschle -- the name me here former majority leader of the senate to be a way -- chief of staff.
And let me ask you this will we get any outsiders and we know who -- -- in the big jobs they'll give somebody you know.
Some commerce secretary there so we'll have to be present wanting to do this can we go back to what I what election night I was sitting.
With several of our colleagues in this network on the -- -- what.
And they were all talking about how the president will use this for regional and no -- character is already there who or what you war.
He doesn't want outsiders you know -- like to talk to outsiders and he's gonna have them into the position do you agree with -- -- have totally totally it's not gonna change me I'm my own take pat and I think I agree with both you and John.
When I watched the press conference -- two weeks ago.
My sense was that there was any real.
Defiance to his tone here and I think that -- that I won they lost and I'm gonna do it my way.
And let him go out to us that -- thus the seeds -- something we always talk about in America which is these terrible second terms of president he's comes from the hubris.
The being reelected and knowing you can't -- -- -- he if they couldn't run again.
They might check themselves -- old but they can't so they don't he took Hillary Clinton because that was a political move to take all the table.
For his presidency.
And he ended it ended up and they need to debut could they loved do we know why all the -- -- -- Bill Clinton by the way it's -- -- today.
You know it's gonna play golf completely out of body in the Oval Office to help impact you do this can keep him out of -- We've just -- hasn't a clue when it's cold come to city -- he -- he would call the members of his own party.
As we learn so let me ask you this.
How do you project out.
What will happen.
Not only on the fiscal cliff but energy.
Environmental legislation education immigration.
Who we get any progress next year John I think immigration yes because Republicans are and daughter panic mode from the election on the whole question of Hispanic Americans and illegal and legal and comprehensive immigration yes on immigration.
The rest of it energy I think there's still going to be a big stalemate over that I think we're still loggerheads house -- the White House.
You tell me his past experience -- if you think this guy's really improved.
Don't -- -- -- -- this election I thought he would before the election now given these tone I don't think -- -- And we are headed I keep saying winter is coming folks we -- -- cold winter is coming.
Winners Communist country this when it fiscal cliff it's not that you could -- the specific.
It easy it is a psychological momentum.
A once things -- falling apart if that's what's happening.
And bad economic news if it comes this could be a very.
Really have a minute Doug to justice because it fits and let us that that we were talking off the air their articles out today about.
This super team that the Obama campaign have put together of computer geeks to do their computer stuff from the campaign way better than the Republican.
And -- campaign team's all met at Harvard's Institute of Politics and the Romney people admitted that the Obama team was vastly superior that's in the campaign when we've got about thirty seconds -- They almost will be I've got to replies to that.
So that we not say this holder became -- now -- it apparently we get the Harvard -- seen on tape could do you watch the Romney people it's like having.
The beat beat beat Washington in general use your analogy -- in the -- -- the Harlem Globetrotters third stage is it red clot.
Yes I got that well with that let me thank you all for tuning in we will talk and -- reliably in the future more.
About the future of the Republican and democratic parties but for now on Doug shone -- jungle brutally impacted how we'll be back.
Next Sunday with political insiders on the Fox News Channel and back here on the web at 10:30 on Monday morning thanks for -- it.
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