Moody's warns Congress must do more to save credit rating
Sen. Rand Paul on addressing debt crisis
- Duration 5:42
- Date Jan 3, 2013
Sen. Rand Paul on addressing debt crisis
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-- 113 congress convenes the spotlight is now squarely on Washington's out of control spending and -- think Republicans are blowing the matter out of proportion.
Moody's investor services is blaring the alarm saying congress needs to act right now.
-- the credit rating agency is blasting the awful fiscal cliff deal saying it does zero to solve the debt crisis in this country and does nothing to protect our fragile credit rating.
Which at this point is very much facing a looming downgrade.
Al downgrade apart AAA rating would be catastrophic for the country so what more congress one of President Obama -- -- that we have a serious spending addiction.
It to tell us if there's anybody in Washington listening to the warnings and what they plan to do in the 113 congress is Kentucky's.
-- Rand -- senator welcome back to Hannity the deceased are happy new year.
Happy -- year to you John 01 of all let me you know don't -- -- The way I look at it shot is that you know this whole debacle is just an argument for term limits as far as I'm concerned.
You know we had ten years' notice on this fiscal deadline ten years in you know when they decided to address it.
Ten years one hour and 36 minutes is when they finally decide to come up with a bill.
They bring the bill to the floor which I never saw the bill I'm not sure there was ever -- -- -- But I was told it was somewhere online at 1:36 AM and we voted at 1:39 AM.
This is no way to run a government and it's about as dysfunctional cyber receipt look it.
-- -- a senator if it wasn't so serious it be funny.
You you can't even make this up.
The question here is.
And I give you a lot of credit you're one of the few the voted against that's.
We know the rest of the Republicans where -- the conservatives.
Well see there the argument they accepted in there is some point to this argument is they saved 99%.
From a tax increase.
They didn't affirmatively vote to raise taxes they did save and make permanent the tax increase.
So part of me says well that that's better than -- Obama raise all the taxes.
Instead of cutting some spending we actually increase spending in the bill.
And I think we're also prolonging the recession and the longer you have unemployment insurance out there the longer recession will be.
So I don't think we did anything good for the country we get some patchwork but I don't think in the end it's gonna help us we still have a spending problem and we have a debt.
Crisis on our hands what do you make -- what Moody's is saying about a potential downgrade and and remember also that predicted to be 600000 fewer jobs what does that mean for the economy.
-- people need to listen closely to that because -- a downgrade of our debt doesn't have to do with us debating.
A year and a half ago we debated raising the debt ceiling -- were saying oh you conservatives calls the downgrade by being too vocal in your debate.
-- that has nothing to do with -- we get downgraded because we have a sixteen trillion dollar debt.
And were borrowing for billion dollars every day we borrow 50000 dollars every second.
That's why are we gonna get downgraded and we've done nothing.
We took entitlements off the table.
Entitlement -- -- two thirds of the spending is if you got a look at entitlements you're not even a serious person and shouldn't even show up or be paid for work I.
So it it's a manufactured deal as I said last night it does nothing to solve the fundamental fiscal problems we have as a country.
-- the seven didn't pass a bill for three and a half years -- constitutional duty.
Where do we go with the debt ceiling.
Republicans gonna take the stand and I don't see any Democrats taking you see that in the -- they got to be willing to shut the government down.
Really take a stand and demand.
That that thought -- be responsible.
There there is a way to do it without scaring the markets and we tried to do this last time -- we're gonna try again.
And what we do is we need to pass legislation that says the tax revenue that comes in we'll go to pay for the interest on the debt.
Pay for Social Security pay for the soldiers' salaries but it won't fund all of government so we will continue to pay our bills.
But we may be -- extend that deadline dad and the longer we extended the more pressure we would put on the president to say.
He would come to the table with us and help us fix entitlements but the only way he'll ever do it is if we actually go through the deadline.
But give give instructions that he takes tax receipts.
-- he doesn't default on the debt that we wouldn't scare the markets.
And I think then we would increase our leverage with every day we went beyond a deadline but for that to happen senator that means.
Every Republican in the house and every Republican senator.
Is going to need to be united.
And I would argue to save the country to stop I think it's immoral to borrow 46 cents of every dollar you said 50000 dollars a second -- -- I mean that's insanity.
So will it in Hillary and I looked up -- it's.
Well they're going there is going to be repercussions if we don't do any thing.
And I hope we will wake up and come to our senses and do something I for one will stand firm about what not -- vote to raise the debt ceiling.
And lest we get a -- budget amendment of the constitution because so far I've seen no objective evidence to trust these people.
They blow through all of their caps they set spending limits and they go beyond -- They they are not trustworthy with money and or very good -- -- so we shouldn't give more money we should.
We should cut spending and make government smaller.
All right well senator I'm -- hold strong it's it will gonna save America and save this country.
And stop problem from our kids that's no way to do so we're gonna need people that are leaders like yourself so people -- -- work.