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Fiscal cliff 'Plan B' and beyond, according to Gingrich

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    Former presidential candidate sounds off on the fiscal cliff standoff, what's needed for a breakthrough and who will ultimately win

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But first.

Breaking news in the fiscal cliff crisis speaker Boehner -- a vote on his plan B -- So here we are ladies and gentlemen.

And what appears to managed to beat.

Dark days the president.

Determine the league ball close to what the American people are watching right here right now is that tragic comedy.

Because the other side knows quite well that's even if this legislation passes the house debate is going to know where President Obama.

And senate Democrats have so much this is an out of planned.

Did you employ people I'm blaming Obama -- -- -- of this -- -- -- Republicans pick up.

Our bill in the house passed here there's nothing discussed we're not picking up any of the things in working.

This -- -- plan B is -- around.

Obama is getting credit for trying to fix it folks Obama is getting credit for trying to deal -- that's got to change we also.

Knows very well.

That revenues are not an issue here it is -- Their plan due to slow walked over the fiscal.

He's got all of this stuff we.

Don't just any fiscal -- We have a fiscal -- in front of us.

And that is the debt crisis that is on our Verizon's.

Plan B is multi day exercise in the future.

For weeks the White House rose that the -- -- race.

That they would make substantial.

Concessions on spending cuts and entitlement reform.

I did my apartment -- they've done nothing we haven't been able to make him on the last four years I don't know how you make your own the fiscal cliff for example look.

That's the challenge here.

I'm Dana Perino in for Greta we -- we are one step closer to -- not a financial cliff tonight because just hours ago the house decided not to vote.

On plan B -- Boehner saying his plan to avoid a -- of January tax hike.

-- didn't have enough votes to pass former house speaker Newt Gingrich joins -- I can't think of a better -- to have right now speaker Gingrich.

Did you or did you watch everything unfold a couple hours ago.

My -- but can we think just 12 day and I just wanna comment about Tim Scott.

Tim Scott ran as a Republican on -- contract.

With his local county back in 1995.

Uses fired but the contract with America.

He was a very effective elected official when he ran for congress he beat both.

Former senator Strom Thurmond son and former governor Carroll Campbell son in the Republican primary.

He's the real deal do you support -- whether -- Tea Party movement is a solid conservative.

He is a very honorable person and I find it.

Said the people on the left are so threatened.

To have a conservative.

African American member of the senate.

That they would say despicable things about him as well as say I know him personally he's going to be great US senator was a great back and I'm very proud of Nikki Haley.

For picking him to replace environments that I just want to get that out -- way before we talked about.

The current mess in Washington.

What you.

-- I am frankly.

Puzzled by.

-- congress a legislative branch.

As five tools appropriations.

Oversight legislation.

Communication -- all of its members and negotiation.

Negotiations the weakest of the five tools I frankly wish the house Republicans or go home.

Relax.

They've voted to stop -- middle class tax increase if Harry Reid wants to stop in the senate that's fine the president wants to veto it that's fine.

This is not a crisis though -- and the republic it's a mess and I frankly wish we would go back to.

Open negotiations.

To open hearings to open mark ups for letting the American people see the process.

I think negotiating in secret in the White House producing a trillion dollar two trillion dollar deal in the next ten days.

I think is the worst possible outcome.

And it's kind of surprise I -- me I've been surprised because they've all known that this was coming for a year.

And yet -- seems like after the election nobody had that any plan of Republicans have been in this cul-de-sac.

And I keep thinking -- -- blaming President Obama and senator Reid for not being able to bring the Democrats along on deficit reduction which was the point in the first place.

And in addition mr.

speaker -- like your thoughts on nest which is.

-- White House in the senate both said that the speaker's plan plan B was dead on our rivals still wasn't going to be voted on anyway so this whole thing was like an exercise in futility.

That's right and and here's the here's the challenge Obama clearly believes right now that he can bluff the house Republicans and they will -- I think people forget when they talk about the fact that Bill Clinton and I got a lot done which is true welfare reform.

Four consecutive balanced budgets a number of things over there were -- serious reforms.

-- forget that we also closed the government for six days in November of 95 poses for a 21 days in December January.

We knock down drag out period and beginning to realize we were both serious.

And I think right now that the Harry Reid the -- majority leader in the president's states don't believe house Republicans are serious my advice to a would be.

Have every single committee and subcommittee starting January 3 hold hearings on every element of waste in the federal government.

But the country see all the different ways we waste money come to pick up on what congressman tanner said tonight into the show when you open.

Spending is the problem and I would start driving issue after issue in spending.

And I say look we'd like to -- The tax rates would lead to face a tax rates anytime the president the does senate Democrats want to talk.

And they're serious we'll talk to him until then we're gonna get spending under control and we're gonna do we -- to save our children and grandchildren I think that would be a much better strategy.

The where they are right now.

Based on the substance of plan B which initially was rejected by everybody including lots of Republicans that don't let that couple days later people started -- always.

It gives a tax cut for -- permanent tax got released in 99% of Americans it's pat does it fixes that AMT permanently it did some pretty good things policy wise.

But from the speakers perspective.

How could they not why did they not sell that to the members the forehand and then how in the world do they call for a vote and not know that they didn't have a.

Why this is part of what happens when you get involved in being too many secret rooms.

You forget you know the genius of the American system.

His first of all that is 311 million citizens -- -- to participate second that there are 537.

Elected officials in Washington.

They all won elections they all have legitimate rights they all should be engaged.

And it's really important that you bring people along that you grow your vote through information and conversation.

And that -- The actual vote comes last it doesn't come first.

And I think it's unfortunate that they are where they are right now but I also think they're flooding they've they've brought out in the open.

The president didn't care about getting his tax increase.

They they fact is that Harry Reid the senate Democrats didn't care.

But I didn't tell us please what they want is everything they want all the spending they -- the additional stimulus money.

They want it on their terms.

And when they couldn't get it they think that they can blame the the Republicans I was very struck out.

Was as Bob Woodward the other day of very wise senior reporter.

And Woodward said any Democrat who thinks this president can avoid responsibility.

For the economy in the second term.

Completely misunderstand American history he got away blaming George W.

Bush for the first term this is now going to be Obama -- economy.

And if it goes sour it's going to be Obama's failure when it goes -- -- glad you brought that up because right before you came on I was wondering if at the White House tonight they're thinking.

Oh my gosh what did we just do and they pushed the Republicans -- -- point that now it looks like the markets are reacting already saying.

We don't like this it on the way that this is going to -- over the fiscal cliff.

-- Republicans might take the blame but.

I mean at this point I think the White House bears some responsibility for putting them in his position where -- -- their backs up against the wall and Boehner had come all that way and they still said now.

But I would suggest -- house Republicans in the senate Republicans don't look at any poll for the next twelve months.

The election is in 2014.

Figure out what you want to go to the American people with what the real choice will be in 2014.

Work away at -- steadily and people will come to believe in your seriousness and -- what you're trying to accomplish.

The Japanese had a term after they won -- Pearl Harbor and they have surprised us.

They ran amok for about six months and now they only had beaten badly -- midway and they said they had victory disease that they came to believe their own clippings.

I think there's a certain amount victory disease of the White House I think there -- dramatically overestimating the that the the -- the power they have and I think there are underestimating the -- they're running of really putting this economy in trouble.

I agree let me ask you about a little bit more recent history this is go back to 1997 when you worked with President Clinton to get that bill done.

I wonder if there were lessons that you learned at that point.

From that that you could provide to their house Republicans now -- if you're just dealing with a completely different type of White House and -- when it comes to negotiations.

Why not I have a sense that.

President Obama is radically different from President Clinton.

President Clinton had been the governor of a southern state he would work directly with a relatively conservative legislature he was used to -- give and take of governing.

As you know with with President Bush who have been governor of Texas when you governor is getting his rhythm of having to deal the legislation may not like it.

But it's it's a fact of life.

I think President Obama has been so much of an orator and a lecturer.

So much the guy you dishonor of things and had so much power with Pelosi and Reid.

In the first two years that he really has not gotten the rhythm.

He and Boehner.

Should be meeting for hours and hours and hours and we -- -- -- one -- the President Clinton and I met for 35 days altogether.

Editor at the different meetings that's a lot of us you've got to listen to each of the guys that you had to say look.

This is what I gotta get this is what I can't do is there some place in here where we can work something out.

That takes a lot of time and I sense these two guys spend almost no time in serious conversation.

I wanted to ask about that too because it seemed to me that Bill Clinton was pretty good at taking whatever you're -- on the table and saying.

Thank you very much in taking that as a winning communicating net as if it was -- success story and that really has been with the I guess than the most recent history written about Bill Clinton was that it is so successful because he is able to lead and get you to come to the table -- -- it was actually quite.

Mitchell well look you and whose -- mutually beneficial we have not been elected in forty years.

When we got elected we've now won reelection as a majority since 1928.

So we have a real interest in tree and how to get this thing to work so we could get reelected.

The president understood that he -- started out too far to the left and had to get back to the center so we got to welfare reform.

We passed -- twice he vetoed it twice this third time he signed it.

That began a pattern and of course.

He was president as you remember from your own experience.

Do you have a bully pulpit of the white house on any given day you can dominate the news may -- -- have dominated for six months but you can sure dominated for one day.

And Clinton was very good -- saying.

I'll -- you have a big win as long as I get the press conference.

Angela and it sure helps when the press is on your side but to say I'm moving better answer other questions 31 is.

There is some talk that there might be a challenge to speaker Boehner that -- and the other one of his fellow Republicans would.

Mountain -- and try to unseat him do you see that coming.

-- I doubt it I think people are frustrated and there's a lot of back biting and bickering tonight.

But I -- John Boehner has worked very very hard at this and I think it basically comes under question.

Of -- as long as his core team is still with him I think he is in good shape and that means basically.

The -- got to decide to stay with him.

That Paul Ryan has got to be within and a handful of other key players -- as if that happens I suspect he'll be all right for this round.

But they're faced with a very big challenge over the next two years and they need to slow down and they need to develop a strategy -- they don't currently have.

Any strategy that I can tell as an outsider.

That -- -- about the my last question for you was did you know that you and I actually crossed paths in 1995.

It was the first day.

Of the first government shut down November ninth 1995 was my first day as Press Secretary to the late congressman Dan -- I did not realize that that's while we you certainly were right in the middle of it then you know how.

Much more complicated it was yes a little later memories but also I -- -- -- I was an essential employee or not.

I hope you -- but you're going to have names outscored you you're all -- -- until somebody we had it tonight of -- none of them perfect serendipity that is so much thanks speaker.