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Good morning I'm Doug shown I'm here with my friends and colleagues on the blue -- and -- -- -- political insiders we're going to carry on the discussion we began on the Fox News Channel.
Last night about sequester the budget.
In the political implications of what's happening.
In our nation's capital where you around the country.
Look we begin -- with you and if I can transfer.
President's job approval if you could put that up on the screen I would -- You see that the president's job approval was 50%.
Five don't know Wall Street Journal poll -- to be getting a last week.
Pat in the context of what happened last week in Washington.
With the sequester what are the implications of these findings what does -- mean and how would to analyze what the president is doing well what's president.
Doing is he is looking he is ignoring those rating.
He has decided to operate.
With the and sometimes boldness you know -- such matters.
Like -- polian.
He's he has decided to operated so he -- 60%.
Approval work that he's somewhere where Clinton or.
Or Reagan or -- home or even Nixon their second from being in a second term there.
This is his thing -- remember his agenda is annihilate the Republicans.
Win the campaign.
So all of a battle we saw last week all the campaigns going -- But he's doing -- as we see on very thin -- the reason he can skate on this than -- walk.
Skates -- less than -- because of Republican party's failure and is opposite the failure not just a republic the failure of an opposition.
To him a narrative the color of media the media is open and -- the media was out of the game there on his side as we saw Friday.
In the news conference when he said -- you Smart guys that you work for me basing -- something to work for me coming to the guy ought to do with what I mean it was really sick.
But this is.
But they've billiard understood how do you overcome that to take this -- to what I consider.
This lack of challenge him and also to go to -- John you speak to this -- all very articulate.
Which isn't the Republicans to have something people want to before.
John how do you obviously I group.
Pat I know you agree I mean the president is riding high.
Cut -- -- arrogant quotient at the highest level measurable.
As almost all re elected president do.
But the Republicans are irrelevant to those like why are they irrelevant they say today -- -- house John.
Well and they're not irrelevant the sense -- they do block certain things but they're irrelevant in the dialogue there is no counter to the president that has any.
Traction with the public.
-- and what -- and they need to earn something that -- before we came on the air we were discussing.
Going against type.
To get credibility you get credibility in American politics when you.
Advocates something that's not in your own interest people say well if he or she is for that.
And it's not in their interest -- before that's -- statesman like thing to do now why -- the Republicans come out and lead the charge.
To raise or put the tax rate for hedge fund managers at the same.
Earned income tax rate that other people packed -- thick -- we know why they are because they're getting massive donations -- -- but.
They -- the reason they should have been doing one well against it but secondly because if you get it around.
Baucus and Schumer and Obama are the people who you know let this happen.
When it would have been taken out -- states for a they need to show that don't you think Adobe -- that they are not the party instantly able absolutely I think they've had to do that for awhile in the in the poll that we had yesterday which you can put up.
The one that said that where the Republicans are behind the Democrats on issue after issue.
I don't know I don't middle class they were down by 182 Portland put up numbers for a weaker.
Yeah and -- it.
-- used to you're looking out for the middle class with John right to summarize that was plus 22 for the Democrats over the Republicans Medicare eighteen.
Health care -- is that sixteen.
Reducing gun violence fifteen Social Security fourteen.
Immigration seven taxes -- the economy -- Look at those last three were ones of Republicans usually used when.
They -- black -- and the economy particularly the last two of them what does that say to you John -- looking out for the middle class is -- -- -- American politics whichever party -- candidate the middle class goes -- -- gonna win the election and were -- that -- and -- -- well and let's talk about the -- Medicaid 18%.
Medicare I mean -- Medicaid Medicare.
The -- Los Angeles Times front page story Sunday morning.
Which -- Paul Ryan our favorite.
Our favorite -- -- my particular favorite idea how to combat leave yourself over the cliff lemmings over to the doctor Kevorkian's.
You if -- -- -- an -- -- -- -- GOP.
Is going to come back with a proposal.
That -- in the budget when they'd actually have a budget that's gonna propose a voucher system for every 156 and under.
Now the country doesn't want including a majority Republican.
To touch Medicare.
Because we have not had a consensus -- country that we have a crisis so before we have a prescription.
He wants to put -- in which the Democrats what did they do did them last year on that if I think in large measure they were able.
To marginalize the Republicans are this is it the initiative to the entities the we'll be having a party with champagne and firework.
-- celebration and -- hedge fund and hedge fund manager John Morse butlers and butlers to celebrate.
This gift for 2014.
When we talk about -- -- I can't and I think we probably.
Miss something yesterday.
We did not talk about organizing for action.
Pat would you describe what organizing -- action is and why you find it.
Forbidding notion in American people -- well -- we're now taking a look I'm the person who invented the term.
During Carter's administration the permanent campaign.
Memo did all that -- -- you need to keep communicate that we have taken over time he's succeeding administration.
Presidencies where -- organization usually using the party committees.
To advance or agendas -- do things.
This is the first time that a White House is taken now under the new law an outside group staff probably build the board of advisors directors.
Are all people were deeply involved the Obama campaign.
Being led by plot who was the White House political side insulting -- -- private.
Business and you pay half a million dollars you get to see the president -- time here this is to advance his agenda and the end and it is the common colts.
And some of the groups that care -- care about -- occasionally.
Are outraged because this is the closest thing to an ongoing political -- for the White House.
To do what federal employees doing would be against the wall.
-- on and not being brought in which a violate all.
They say you know each presidency and is not.
By party each one.
Has gone more in this direction we were outraged when donors for sleeping in the Lincoln bedroom under Clinton.
But then they said they were doing that under the bush is tough and now we're doing this kind of thing.
In effect the president is using his presidential time and power to assuage and -- -- Donors to do things look pretty acts as -- Indeed direct the implied in.
And he's currently almost openly -- tried debate but what.
Access to the president that -- -- senior advisors that is -- -- that's also a potential violation of the law.
But this is -- you won't get around anything else but this takes us this would go down slippery slopes this is a slippery slope.
-- you don't want somebody on the other side is gonna one day there's going to be another present another party they're gonna regret this would you things.
You know what I what I think is we are heading into a dangerous time in American political life where our economic recovery I think we -- acknowledges -- week.
Where the parties are not responsive to the real world both problems and concerns of ordinary.
People and I think if we put up.
Slide six and seven will see that.
If I could call from them now.
Does how does the economy -- to you -- family.
You'll see getting worse is plus tens since October.
Getting better is minus eleven so -- apple -- -- -- little margin each which on matters from.
Three points worse to shoot 24 points -- And pad is making exactly the point people are being.
Impacted but if we go to the next slide if I could.
And how and pat you might speak to this the American voters are fed up with the high gas prices the deficit government spending gridlock.
that won't where's the disconnect.
The disconnect is that things that they are -- about and by the way if we have had food prices on the -- Rising in.
Food inflation don't would have been up in the eighties along with gas cassis.
Forbid -- me -- -- be up there.
I'm telling you that we have a country and -- government a political class so disconnected.
Here's the point in my daughter Heidi made we have been using the -- -- for -- weakness.
When she said to me -- I've you know -- not political but all the news and let me tell us what they're talking about Washington had nothing to do with what -- -- And she tells me how much -- -- and it beat our family a mob.
Gas went up forty cents in two weeks and what it's doing to her refuse to drive a lot she said people like the that we see the report over the weekend.
Bed because partly because of the rise in the -- -- -- payroll payroll taxes back I have to normal the backed what do wants.
Did we see that in your income has taken a nosedive meanwhile the stock market the world that people are doing great.
Date but that is the political class is doing wonderful -- to sequester issue which we'll get to.
Part of it is is how upsetting it is -- -- political ideals here.
And a note for use that he has few and I of course John to reply.
Even with this sequester that mr.
canal just spoke of the federal government is spending more money in 2013.
Explain to me why this is a cut.
Exactly -- a great question yesterday I watched the morning show.
Which is really just -- really that is really self flagellation that's that's -- because this is but in preparation tried to watch him reports.
And I heard no one I could have mr.
but I heard no.
Make this pointed out that sisters given that mr.
Skinner just made which is first the ball.
No agency is taking cut greater than the money they had.
I mean -- all have a lot more money than they had two or three years ago.
Number what we are the government is standing by now there are parts of this question are crazy.
Two thirds of the government mainly entitlements aren't affected that's what's going to -- But we're talking about less of what you've got.
Less of what you we're supposed to get under the weight with the stupid -- fantasy budgeting there are all getting more money that they actually had last year with.
That we are gonna take a break.
We'll come back was representative John lovely day in a second we'll get his -- thanks a lot.
Welcome back I'm Doug shone with John the -- -- and Patrick Allen John we left off to an inflection point.
Pat has been telling us I think quite articulately why the sequester is a fraud.
Why what is going on in Washington is dysfunctional and destructive.
But there's one group that to me and I -- -- had as well is MIA which is the Republican what's going on with them.
Remain shell shocked from the election they don't quite know we saw and in the Romney interview over the weekend by the way.
He still shell shocked by admitting that on election night he actually still thought he was gonna win now.
Any good political person what they're here to the ground getting proper data would have known.
Before six or seven or 8 PM.
How come the three of us know -- -- -- -- -- -- -- one -- for sure what we did our Internet show on that Monday and all three of us predicted.
That Obama was gonna -- we were -- this on the electoral -- we all predict.
How come he didn't know how much of a leader can you -- If you're not that plugged in to the public that you're gonna represented and he -- That's the Republican -- they're disconnected.
Since the election with the public.
With each other -- not talking to each other they haven't decided what they stand for anymore -- wonderful book on gay marriage someone -- -- on immigration.
What is being a Republican anymore well I ask you what I -- while.
I think they can go back to the traditional things and it will work libertarian.
On social issues.
Conservative on fiscal and defense.
Peace through strength not invasions.
But the ability to deter an enemy by being strong militarily.
Fiscally strong we gotta be in favor of responsible budget reform which we aren't we -- vote that assists spending party as much as the Democrats about.
So that's why I want them to come up with something that is.
Gonna grow the economy and -- gonna reposition ourself more for the middle class.
Main street not Wall Street police.
Give you another -- one of the things about the sequester that bothered me -- it had nothing to do with entitlements -- and Jimmy I am -- is.
-- We need to reform and health care that really lowers cost.
And a majority of the cost is based on risk insurance cause for the hospital and -- DR.
-- means ER.
Capital loss -- -- course will go down pat what do we do about health care.
Well well hopefully we'll be dozens of about out there called obamacare and it's gonna blow that health system the United States -- wide open which we -- I don't know.
In order to cover people and he's one of the great you know won't even cover everybody that it won't cover it but it's gonna cover people will cost is going to be astronomical you're already -- it.
Doctors and -- The answer is we need -- pro active.
Part of our health problem is -- point you -- -- we're not working to prevent people from -- saint Maarten marker or produce our producers of the were helping people -- support I've tried to cure.
The cost of health care and call an enormously favorable or -- does something other than what is now another gigantic bureaucratic effort.
To control what everybody gets what everybody does.
You know it's it it it is and maybe it is the major problem of wanna come back to what you said about republic.
And this is part of the health care that I mean we're not we're spending less on finding out -- -- -- But what the Republicans need is a -- -- a -- -- dignity and three were.
A constant compelling and what needed -- That they have been then they the Republicans or opposition Obama had all the time.
And it needs to be done and they don't -- the Boehner.
But the president got to have the press conference but -- -- -- there was no real response the Republican leadership left out.
So before we leave town let me change the topics -- kind of -- -- -- slide eleven if -- attack.
-- -- -- -- On media thrust forward its 42%.
Say they're not -- trustworthy 6% say they're very trustworthy.
John let's start with you.
Are the media -- the -- been complicit with Obama.
-- I said they were compliant the other day and you corrected me he said they were complicit -- that in my opinion yes.
And obviously we all know the media has changed.
Their view their role of being.
Sort of a pressure point on an incumbent president which even happens to democratic president's.
Clinton they had a tough media.
Obviously Republicans always been Nixon certainly had a tough me Nixon did the only Republican who has -- in my lifetime is the -- after nine elevenths.
Bush to do and didn't do anything you want for a couple years but.
Generally the media.
Does their job until this president came along.
And they view themselves as part of the Obama operation they root for the guy until eight part one felt -- -- One of them.
The guy the brought -- that.
Bob Woodward breaks ranks last week and look what happened.
The media rallied again to Obama against -- the dean of the media.
Even fox people on the right -- were were rallying against.
Well against Bob Woodward Bob Woodward because there was acknowledge -- yes this happens it ought all what would this -- that bat the answer is.
It was it was this on an issue that was this small when the president was -- movable walls -- being.
Untruthful about his role in the email and the cause this raucous and the White House push back.
They are they look they played gangster politics in a way I have not seen since the Nixon administration lets get the word on the table.
The problem I have with what birdies and -- this is a -- we don't know -- -- -- dusty.
Because if you think you'll react to being to too.
It is to sequestered they react to -- -- in the Mahan who should be doing and Ozzie Bob Woodward has been silent that's what I've only.
And back to you John -- have a tweet here you might.
Tom in North Carolina -- the former representative.
Where are the ideas from conservatives.
Why can't they get them out and frame them -- the way that everyone gets it representative.
What's the answer.
Well in -- brother speaking of that we have The Heritage Foundation the American Enterprise Institute that Hoover Institute all these big thank Ted also came right.
And -- the -- most recent idea they came up what was the individual mandate in health care that came from then.
We haven't had a pro growth.
Simple idea you will not get an answer in this country don't -- -- what comes outside that beltway.
-- both parties.
But you -- that place is Sodom and the more all the putts -- and it is corrupted by the way you know reminds me last.
-- reminds me -- when I left was -- still at Harvard Business School I got invited out to Los Angeles to work for Justin Dart -- -- pay.
Reagan kitchen cabinet guy and he had dinner for me -- me -- -- -- form and he had this funny little -- sit there and he said John what you work for this guy.
He's gonna run something I want you to be -- deputy he's Arthur Laffer now Arthur Laffer who I never had heard -- was the father of supply side economics.
Which whether it's been discredit or not it was an idea the Republicans seized it and rode it to.
The 25 years our party of ideas of party of ideas and this is but -- tell -- it has to come outside just like.
How we solve -- -- -- land troops came out of the war ones with Higgins boats that -- This couple never come out of the bureaucracy.
Those it's usually you mentioned are or.
-- -- one of the do good things about things they don't but from left to right are all on the same political class Washington agenda.
Creative thinking is gonna come outside I'll tell you this -- promises audiences.
You give the three of us in a few people one day you put a platform together for the country.
That would blow it apart.
And on that note Russia as well.
-- as usual has raised a provocative subject about.
Like to turn to -- -- we've talked about before which is we just had an Italian election where a comedian who committed manslaughter and was unable to run himself got about a quarter of the vote in both the senate in the lower house elections.
Is the time right job of the United States what we thought it was two years ago we go to would have been for last year.
Now -- you concede even more because what's happening in the poll the one you put up with Obama's approval rating.
He's the most popular politician in America and his popularity is going down.
The Republican majority in the Tampa saint -- Sabathia the entire political class is going down because of the mass of the budget the sequester all.
And as they go down and the economy is gonna slow down because of -- what is sitting there will have to be an alternative new entity of some sort whether it's -- Better Ross Perot is an individual or a party I don't -- but something actually com.
You know Renaissance and our political system must -- -- Political class -- someone's taken preserving its power and apparently.
Did the expense of the country until someone equally challenged that -- -- 75%.
The American people who live on main street or -- -- from left to right.
That's where it is and them in the Italian story is interest -- this is basically screw you right.
Party and it's got a quarter of the -- it is huge and they move over there right against corruption and against the political world and oracle the political -- -- the political class and how they were scoring ordinary people you know are wanna read something which I think we all showed.
And hopefully do find -- part.
The three of you are the only ones that make me stop and listen when you were on the air.
I value your opinion.
What was very kind and I can speak with three of us we thank you but why we thank you and others might want to listen to us is because.
We decided when we created the show together we would never spin for any political person or party we would tell the truth is we know what.
And we have angered people.
Coming -- a little bored I was with the Democrats the former chairman of the Democratic Party give then -- mentioned these two guys and -- dumped on you because you're not.
Always angry and it's about any -- -- heads are exactly and and so anybody commended and I think.
You know the comments that I've mentioned to both of you where people come up to me and say thanks for political insiders you tell the truth is you know it.
You come down the middle you're not coming from a light right extreme -- -- left extreme I take that as a sign and an endorsement of what we're doing.
But let me just it's to give the audience hint of what is to come.
Patents and I are going to be on relent to.
In our commitment to openness.
And fair in a reasonable politics.
I think we're coming in -- even tougher times after economically politically and I wrote a piece just forgot to winter is coming vote.
When -- company you know if -- win turned -- of slowdown in the economy maybe another recession it will this one will be seen.
As being caused by the political will be worse pat went -- to -- concluding comment and then we will be done for today.
Well -- in the conclusion just answer that but you know when the -- we need to -- what we're not doing is giving excuses I heard Romney was yes.
Saying lost because the health care issue was so the power Hillary will scorpion which is so ridiculous health obamacare was a winning issue Republicans -- What are jobless attack everyone Republicans dislike us -- Republican establishment tell you does not like what we say.
It did so as a democratic seven.
The answers or will we are about what the reality of the country is and that's what we're trying to do and may be wrong but it won't be because we're real moment -- with that.
For John and pat on Doug -- we'll be back 530 on Sunday and next.
Monday at 1030.
Here on the web thanks for joining us.
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