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Treasury Dept. warns US will hit debt limit on December 31

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    Emergency steps launched to buy time

  • Duration 6:37
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Certainly rise in Washington as the Treasury Department warns.

That not reaching a fiscal cliff deal could mean disaster the US government may hit it's a legal borrowing limit.

By Monday setting in motion emergency measures to try to keep the government.

You know to pay their bills.

For several more weeks Doug Shawn joins us former advisor to.

President Bill Clinton Fox News injured Terry Holt joins us.

Former -- bush Cheney national spokesman and former senior advisor to the RNC could see about dobbs.

We don't know what's amazing I think to a lot of people -- is that they're not even talking to each other.

The last meaningful conversation.

Between the president and Boehner for example was ten days ago.

-- look when you were in the Clinton White House.

That's not the way things work right.

Absolutely not great.

President Clinton -- Newt Gingrich that then speaker despite their very real differences.

We're talking all the time I I think at one point they spent total of almost 35 hours.

In total together.

Bottom line there was always a sense of national purpose that I think is missing here -- -- bottom line on both sides I think there's a lot to be accounted for.

You know Terry.

Let me put up on the board.

What this means to the average American right three -- box if you're the lowest taxpayer there ER.

But you're talking about if you make forty to 50000.

1700.

Dollars.

Go to the next page what could the us I mean you're talking about folks who make.

You could be in New York a firefighter and a teacher in -- making within that range of 200 to 500000.

You're talking about thirteen 10141000.

Dollars.

In increased taxes and then there's the last page 500034000.

Dollars you think people really.

Appreciate what's about to happen to them.

I think they appreciate that the American.

Political system is talking all about raising taxes.

And not nearly enough about cutting spending you know when.

When the average American family gets into a little bit of financial trouble they think of ways to cut back their spending they don't automatically think.

They're gonna go to their boss and get a race but that's exactly what's happening in Washington today.

We're talking about how much more money we're gonna ask the taxpayer.

Tissue and for this government this bloated overspending government -- not ready to hit its debt ceiling.

The president might have won this election but he didn't win the authority to write a blank check to continue to spend and spend and spend.

To hit the debt ceiling and then go blowing through it if there may not be much conversation in Washington between.

Speaker Boehner and President Obama.

But the Democrats control two thirds of this government.

They might.

Think about having a conversation among themselves the senate and the president to bring something that that might have a chance of resolving these problems and maybe -- -- they better think more about cutting spending.

Before coming -- from warm.

You know what Doug Karl Rove wrote an op Ed in the Wall Street Journal.

In which he basically says -- -- the president thinks it's all about him.

The more mr.

Obama makes everything about him the more stubborn he's likely to be when flexibility would be better.

Success requires adjustments including a greater willingness to compromise.

And to seek common ground.

With his opposition.

-- -- -- I think it is a fair point I think it's a fair point on both sides look we had a framework.

That did what Terry described it was called Bowles Simpson the president didn't supported Paul Ryan didn't supported it didn't have the kind of bipartisan consensus we -- it would have gotten us four dollars in spending cuts for one dollar and revenue increase.

Bottom line we lacked common purpose as a nation both parties -- believer to Bob be blamed.

And Greg as we go to the end of the year in their Christmas season I would hope that we would have a common purpose put partisanship.

Aside and say how do we put the nation first sadly no one's doing that.

You know it's interesting what Doug just said Terry and I want you to react to that he says you know both sides -- good point.

Why is it the polls show only Republicans really get one.

Well look president has the bully pulpit he has the ability to go out and have campaign speeches.

And their control the national debate in a way that the house Republicans simply don't have the president.

Has the ability to -- shape.

The opinions that are that are being made about in and how the no news is being covered so we -- a huge advantage and he -- demonstrated time again.

-- to demonstrate campaign tactics.

Over that nuts and bolts of policy in the debate here in Washington about how how to really fix our problems if biggest run half as much time talking.

Two people in the senator of the house about how to fix these problems as he has jetting around the country holding campaign style events we might be in a better place today but we're not.

You know what.

-- Doug before though talks collapsed Boehner showed a willingness.

To raise the debt ceiling for an entire year if the president would agree to making significant cuts.

In entitlement programs what's wrong with that deal.

There's nothing wrong -- that I think.

Part of the problem was that as we saw with plan B.

It isn't -- speaker Boehner controls is caucus I think what he is hoping sadly that if we go over the fiscal -- he's reelected January 3.

And then he'll have a little bit more leverage to get a deal like that Don but I agree.

With -- the Democrats have to do more to restrain spending but particularly won't run rein in.

Entitlements hopefully saner minds on both sides will prevail before January 1 and if not right -- They're generally wait and so -- -- no real good good going over the fiscal cliff has been president Obama's.

Mission from the very beginning the fact that that he just I don't believe that's.

Is is completely different they're really added that he wants to do that I have.

Absolutely you can not only what's his Larry if we get it -- he only gets his way if he backs it's all up against.

The wallets as you have no choice it's my way or the highway.

That's been his negotiating position very -- that somebody would talk like that think like that all right.

Talk -- I would hear Hillary -- thank you happy new year.

-- and you're not really.

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