Who’s going to take charge on preventing the sequester?
Bob Rice and Eric Yaverbaum on whether both Republicans and Democrats are to blame
- Duration 9:30
- Date Feb 20, 2013
Bob Rice and Eric Yaverbaum on whether both Republicans and Democrats are to blame
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On the -- -- you don't come like hello everybody.
Busy day politically we're all still talking about the sequester.
But some very interesting developments coming out of the white hats on cybercrime as well we've been talking about this for a long time -- -- show.
We were talking yesterday without chief intelligence correspondent Catherine Herridge.
About how the Chinese army is suspected all of major attacks big surprise.
Back and this new report abandon those attacks now the White House it appears wants to.
Take some action or will -- -- managed to anything will get into that.
In a moment but first of all we have the brilliant ball Bryce here managing partner tangent capital and they equally brilliant -- -- -- my -- without -- -- -- -- -- So this morning I'm smarter than I ever got to get -- and I -- buddies rather than a fifth grader Eric of course is associate publisher -- of social media.
Max good to see above stated -- first of all I.
I was -- involved and I'd I've been wanting to -- -- this I was reading have couple of pieces recently saying that this whole sequester thing you hate.
Big deal let it happen it doesn't really matter it won't affect anything that much I think certain officials -- the Pentagon might disagree but what will it actually do with this 85 billion dollars in cuts.
Is traded well you.
We've talked before about the fiscal cliff reliving a fiscal wheelchair -- Right right and in India in many ways this is the same thing because.
There's the reality is if it it -- Comes to pass you can undo it at any time it's it's not as though.
This is I don't think that you're gonna see this sequestered -- -- and then nobody's ever gonna do anything about replacing some that pentagon spending right or replacing -- Today is not gonna happen and so in that sense I think it's -- aunt because it's really just -- a landmark.
On -- a negotiation journey not if now the reality is that the -- cuts big -- and and they stayed in it would have a negative impact on the economy.
To some extent you're gonna slow GDP growth they're gonna have higher levels of unemployment.
The military's gonna have to make some significant adjustments but honestly I don't think it's the end of the world even if they kick in and they stick there.
The total number number that we're talking about is still -- spit in the bucket.
Compared to the -- federal deficit well aren't you.
Well one yet to spit bucket which means it's really not solving the problem and it's intended to solve want to do is I think we all now we can say we're guessing but we actually know.
Debt even if it happens.
It will somehow be reversed somehow so that's my look at as big at.
That it but there.
The whole issue though is is that this spit in the bucket he's not gonna solve the problem let's solve the problem instead of having constant.
All you don't I don't get that -- we -- you don't -- not going to solve the problem everybody's playing politics with the following -- what with we're not gonna solve the problem we're gonna keep kicking the can down the -- we've been doing it for years and -- it's time that we stop doing that sooner or later we won't be able to do -- We have not gonna do down this -- we've all -- you know look like and it has any of the Politico -- what I.
Pretty confident that we're not gonna do it -- -- Until there is a truly major crisis because it's only -- -- crisis point and people take these things seriously nobody -- it would bring about that crisis a significant rise in world interest rates which fool how they.
Impact on our net borrowing costs on an annual basis.
When you're you're gonna take up a hole that's already enormous.
And make enjoying enormous because the interest rate in the federal debt will go up and the amount of money that we have to spend just to cover interest payments every year it's like the minimum on your credit -- the likelihood of that happening and oh what I look at global rise in interest rates -- it's very hot it's finally I'm just very hot it it's kind of -- happen it has to happen.
And people don't quite what that means when we're gonna -- an elevated amount of interest that that's seriously.
You know that's significant I mean it's it's exactly the same -- -- -- before 5% mortgage on your house and they -- have a 10% mortgage how does that how does that.
Do for your monthly cash flow guys and they've probably -- -- -- your personal credit card your personal credit card just not five or 6% how do you.
Personally feel about your credit card interest going up that -- that -- you can eat meat and he's gonna take a lot longer to pay back and so is everybody is everybody in Washington.
Simply gambling -- future is here for the sake of politics.
They -- gambling with our futures.
-- probably because they don't really want to believe this is going to happen where did they don't think it's much easier to believe that the future is going to be like the president.
And everything is going to be more or less okay and it connecting -- people continue to believe that until the day when it's not OK anymore.
And that day is coming I mean -- global interest rates.
Will start to rise and and then we're going to have a huge problem in this country because we haven't adequately address these problems yet I I -- this is indeed.
Do you think the politicians are letting us down on both sides here.
Yeah -- You know we we are you know the sky is falling actually it is it is actually -- There's a lot of issues that need to be addressed today.
That we don't have the luxury of time to wait to solve but we keep.
Creating what we -- is a -- luxury of time that we don't have.
On a lot of issues and are a big -- right seen here -- says wait to see this as a sequestration means nothing.
Sounds like something Obama and congress would do to get us talking about anything other than what they -- really.
Doing which I think that ball back is thank you for that big -- I'm not sure whether it's as a but it always good to get your comments -- live -- -- working here right now so I'm not going to be getting them printed off and I'll read as many as I can.
And we'll try to get my computer -- soak and wet.
Ball wet do we go win this wall gig in -- and it we just gonna get another stopgap measure right now.
And would then how much longer than do we have.
-- these crises that you say good so I don't know why tell us.
What they're really really fears -- just going to be in this continuing.
And mode of kicking -- down the road report much kicking it down there were three or four months can handle the -- and and we just getting to this perpetual cycle of but no permanent answers to anything which we seem to be an already and that's the easiest thing for politicians to do -- in which we all know they like to do the easiest thing it has the least political risk they'd like to do things who believe political risk.
You know you you pray -- means miracles do happen where it's possible.
That the ruling will be a grand bargain which will have significant.
Revenue increases and significant expenditure cuts and -- -- you know I've said it will issue a million times you how.
-- -- have both of those things we have to have entitlement reform.
And we have to have higher revenues in just must have -- isn't this the best time Paulson.
-- -- actually get something done because we I've not quite two -- -- almost two years away from the mid term elections well anything is ever gonna get done.
This is surely the time to do it because they don't have to worry about an election right now in theory but probably what I think -- will happen is.
Nothing will happen -- It's coming up on the mid term elections and everybody's -- only got -- -- we can't keep talking about the same things and -- a lot of things that we eat all of us -- do you know at any sort of political talk just talk about.
We say I'm really talking about this again and again and again and again because.
What we're not resolving the problem I don't.
I don't think anything's gonna happen until we get close to them from the life is as opposed to yell -- -- -- -- right now he got a president who is not going to be running for reelection this is it for him.
You got people who just got into office now's the time to do something not when you're trying to get you know -- in the mid term elections the midterm elections all they become is what the country thinks about the job they're doing in Washington know what they think and every mid term election if you're doing a lousy job doesn't matter the administration must.
So -- ball the the right is blaming a left the left the blaming it he's blaming the right you're a guy who generally.
Sort of goes down them -- fairly moderate middle line.
And you also have a a good day at a great economic brain who's really to blame.
Oh my gosh Jonathan I mean I hate to say this it is -- -- -- So maybe can be very reverently I'd I don't like to be handed -- I'd like to give you you know one -- and when -- honest to god they are both self.
Totally to blame here in there they're both sides are so.
Fundamentally economically irrational the last election was about once -- promising more social benefits and the other side promising even lower taxes so they're both arguing for a bigger deficit.
-- so in that case how can you say one side is to -- they're both equally to blame and it's infuriating well fundamentally economically irrational I'm running it down yes they are.
-- -- -- Well all third and I don't I'm voting for that somebody that is the problem is is that.
You know I mean five years ago -- staunchly defended the left on this network for a long time yeah I'd sure.
Number well -- nice to have some real unfortunately both come a little -- but it.
It what's sad to me big Obama supporter is is that.
He went to Washington talking about everybody all those Smart brain is getting in the same room and figuring something out and it not be such a polarized environment.
Yet in our lifetime it is the most polarized environment ever and that talent trees everybody's voting.
Right or anybody's voting -- they're sticking the party lines and nobody southern province right edge and -- that's absolutely true and there is no.
There's no sign that we getting out of that cycle if anything it's becoming --