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Lawmakers brace for next big economic battle

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    Focus turns to debt ceiling

  • Duration 5:51
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So the big BC deal is now setting the stage for Washington's next big money battle.

The nation nearing sixteen point four trillion dollar debt ceiling once we reach it if congress does not -- the government would not be able to pay its bills house speaker John Boehner.

Warns quote now the focus turns suspended.

The American people re elected a Republican majority in the house and we will use it in 2013.

To hold the president accountable for the balanced approach and the promise.

Present Obama meanwhile says he is not planning for any.

Lengthy battle on the debt matter.

-- negotiated over many things.

I will not have another debate what this congress over whether or not they should pay the bills.

That if they've already racked up through the walls that they passed.

And they repeat.

We can't not paid bills that we've already -- If congress refuses to give the United States government the ability to pay these bills on time.

The consequences for the entire global economy would be catastrophic.

Far worse than the impact of -- fiscal fourth.

So what about all that you know we really.

Warming up the one of the dogs in the cage Alan Colmes -- Alan Colmes radio show when Tucker.

Carlson editor of the daily caller of Fox's contributor gentlemen it's great to have you both fine -- -- happy new year to both of -- I don't know Tucker I guess if he thought this fiscal deal was a big matter.

Buckle up.

Well the president says he want to -- he will debated this will be debated nobody argues that the debate over the fiscal cliff is the best way to cut spending.

But there's no other way the debt -- it's not a Republican talking point is that the debt is out of control the end of the Bush Administration the debt -- about 65% of GDP.

We're -- over a 115%.

Of GDP our debt is bigger than -- -- So so using this debate as leverage not to not pay our bills that's a talking point that's a foolish that's a false -- presence at.

But to curtail future spending is really the only option the president has shown no willingness a sincere willingness -- all to cut significant spending.

Here -- -- what do you think about well they don't really this congress has really want to they really cared about the debt.

And they really cared about the financial security of the country.

They wouldn't be threatening a debate on raising the debt ceiling which -- been raised seventy some odd time since 19627.

Times.

During the previous administration.

And this is for as the president point out in the clip -- just play.

For money already spent spent by this congress was an -- argument or debate and and create more further uncertainty about the death.

The -- debt ceiling.

Would -- again give -- for example a chance to lower our -- we usually get a lot of government just to keep on spending on -- is that right I -- university case that should not even be a debt ceiling is that identity would be -- debt -- because every note debt ceiling and are because -- debt -- only pertains to money already spent the issue is the spending itself.

If you if you don't.

Allow the debt -- to pay for the -- we've already occurred.

Then we default and then we've really got -- public debt ceiling is a phony issue not -- -- to talk about but it's phony in terms of its got it's from money already sorry -- -- -- -- -- -- allegedly positive happened for our viewers -- first established in 1917.

That's -- on the screen raised a 102 times since first created.

Congress has voted to raise the debt limit eleven times since 2001.

I saw you shaking your head after.

Well of course because we've had this for almost a hundred years this was created when we begin issuing debt to fund the first war.

I don't want getting rid of the debt ceiling but but the factual point that I think on the -- here.

Is that our credit rating was not downgraded because of debates over the fiscal Clinton was downgraded because our balance books are completely there was another -- him rating agencies said so at the time they said.

Your debt the US government's debt is just to -- and by the way just be totally clear and viewers may not understand this.

Our official -- number does not include entitlement obligations nor does it include mortgages held by Fannie or Freddie I mean it is a fraction of the actual debt.

But our official that is sixteen point four trillion dollars in the ratings agencies have set again and again.

That is too much it's too large -- percentage of -- GDP it's just want to reassure markets get your balance.

Looks right -- when Moody's lowered our ratings they stated it was because of the -- -- that was created by the congress.

That could not come to a deal and then that can played around with this issue of the debt ceiling which is continually been raised every single time it's come up in the -- except for when President Obama was in the White House with the issue -- That did this sixteen trillion bother you.

-- the arc toward twenty or 22 trillion dollars -- you in a vacuum of course it sounds horrible but don't forget we've had to do.

The spending over the last six years because of the collapse of the economy started with the Bush Administration to do with Obama stimulating both -- the banks back on -- you -- -- -- just said yeah it's it's doubled since this registration -- -- doubled because of the need to continue.

These.

Prop policies and -- to stimulate the economy now that you spend -- in order to make starting a business you know here's the one -- point Allen is nobody can defend this level of -- it's poison for future growth everybody understands that.

What's the plan to curtail future spending you can't balance this budget on the backs of the top 2% we've learned that we're about to learn it okay concrete terms after you could take time out on the back -- -- lower the lower 98% either certainly the lower five to 10% who can't -- barely afford to pay their bills month of so you raise taxes and try and figure out how bigger shovel needs to be get -- -- so are you close military bases around the world -- -- -- things we do let's get out of -- -- and what you know is.

Incredibly absent from this whole debate is that no one talked about how this deal in DC that was reached late last that would create jobs.

And the economy and make it stronger Tucker thank you Allan thanks thing as well go to our view.

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