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Senator Judd Gregg says -- Obama's budget is going to bankrupt our country.
Now that's particularly stinging criticism because senator Gregg was not made by the president -- e-commerce secretary.
Senator -- later withdrew his name from consideration for that cabinet post.
And moments ago -- Judd Gregg went on the record.
-- we've gone bankrupt.
Well if we stay on the path that's been proposed this presidency relative to spending taxing and borrowing.
We'll get it pretty quickly portion.
Because of the debt that we are running out for a double that under his -- five years triple in the juniors.
Can't -- -- -- -- -- -- it definitely is inflated.
We'll have to figure out some way not pay it.
If we go bankrupt.
What does that mean for us diligently for the average American when she got this incredible numbers in I mean it's extraordinary it's it's hard to sort of realize that means it actually means to something.
Well what it means is that we as a nation facing borrow from other nations and our finance our ability do we want to do is a government and its people.
And people simply say I'm not so sure a lot of valued at any longer or -- -- your -- -- -- charges such a premium listening very expensive you.
And in the end it means that the quality of lifestyle in this country reduces because you end up with such a huge debt and you have to you spend so much of but the profitability of our nation of the product of our people on paying down the debt that you simply can't spend -- on things like sending kids to college and mine house.
Doing things in this country stronger.
Pushing that China holds the most amount as a -- country -- the most adept American debt.
Gather if there comes a time and we content just called the dead and say I want the money mean how does that work that's how works like your your visa card -- when the when someone.
The department store wants to pay your debt what will help.
We we've never get to them.
And that would be alarmist say we would get there except for the fact that our present glide path.
We don't do something the Chinese Mason -- -- -- are getting longer in effect the premier of China did say Justin.
Couple weeks ago that he was very worried about -- he was concerned about investments that they have in the United States.
And we need them to -- -- -- -- to finance the deficits and so they order correct that we need to get the deficits and that brings a -- down.
In the wake of the -- is sound you don't spend as much money is -- going to spend this government.
If if someone doesn't -- -- -- a foreign country is unwilling to buy our debt and we have fanatics believe is exploiting a lot of the deficit.
We print more money right to set Hudson and everything we -- that and essentially inflation gets very -- so little loaf of bread is very expensive -- in theory how was the is that how we.
-- worse case scenario that's what what happened basically.
What's known as long treasurer -- -- coming from the Federal Reserve prints lying on my card and that creates inflation.
Isn't it time ago now and it seems like this we see what the budget proposal as five that the current administration and you'd think that now -- -- -- time they -- change.
Taxis for point that.
What we should do now -- this.
Granted we're in a recession so that we got to spend money we don't have basically try to get -- -- recession accept except the administration's initiatives in this area and I support their nation's most of the -- here.
But two -- three years now what we should be saying to the world community and to our people is we're gonna start disciplining ourselves financially.
We're gonna look at that counts are gonna drive this -- driver spending most aggressively which are mostly entitlement counselor -- figure out some -- to make them more affordable.
You start Social Security for example and do something aggressive there something that's positive and -- ball that was Medicare we did that we put that in place some people have confidence in our.
Just the resilience because we are resilient nation.
So right now you need support them that the administration's effort to restatement due to -- stimulate the economy and then and with a stimulus bill some sort of sports like -- would not name out of the action -- inside -- but the whole concept elitist statement coming out because we're in a recession.
Is there anything different that you would do right now.
Absolutely right now I would if -- sent -- -- -- -- I would have put in instructions to bring under control the rate of growth of spending in the out years.
What they've done is they've taken spending as a percent of gross national product to 20%.
Historically plus forty years it's been 20% of GDP that 3% is a huge amount among other.
-- economy our size we got to get it back 12122%.
At the most and the way you do that is you limit the rate of growth of entitlements.
And is that something we do it next budget.
We have a commissioner right now do right now if we don't do right now -- look like we do right now what's the practical effect on us.
And by -- I mean the American people we.
The short term will survive this but in the long term we're gonna end up -- dead accelerating at a rate that we can't afford to pay it off in a way that's gonna continue our productivity as a nation we basically.
If you triple and double that five years in -- and and in ten years.
You're basically putting yourself in the position we're just supporting that death -- sporting a desk and -- up.
Huge amounts of resources that should otherwise be going to make -- more productive.
Do you know of any democratic US senators that are pushing back on this -- could -- -- proposed by the president -- there -- a lot of senators.
There are a lot of people here in the senate a lot of democratic members who are very concerned about this issue.
Hand they're number proposals that are very bipartisan to try to address this issue.
For example Conrad -- which is -- proposal which basically puts in place today.
-- system -- a government can face up to some of these policy issues and make some tough decisions.
That's got very broad bipartisan support.
On the usual push me you know White House and -- to put across the goal line.
-- had this discussion of the president.
I haven't had a with the president as have many of my colleagues this is not a unique discussion and the president is understands the issue his staff understands the issues.
The problem that they have I guess for the concerns that they have as they've got a very big and and robust agenda they intend to expand the size of government significantly and I think.
They're not going to stepped back and say what's the long term implications of us.
Is there -- certain agenda for the government independent.
Of the way that they have had I look at the economy and -- and they decided that the -- -- it would the government so we're gonna we're gonna go this direction.
That we think is gonna help becoming but that's more appointments are trying to micromanage -- coming right now.
Well obviously in -- short term they've got to spend a lot of money I accept that fact and they've decided to death and I support for example initiatives that's.
But at the same time this is to track exercise in the short term we may have to spend some money over the long term we have to discipline -- spending and they haven't -- Put in place the process disciplined spending one term president than just the opposite.
Their proposal is a setup radically expands the size of government here health care measures student loans in the area in a variety -- energy and just discussions.
Secretary Geithner and gonna go stay kitty go -- today he should stay in the supposedly came out today is a reasonable proposal let's hope at -- as we needed.
Pushed the smartest person on economy not taken any equation -- who supported the decision we do if you're asking that question could you sort of look at we think is the smartest person in politics said.
-- and it was the smartest person.
Well there are a lot of very capable people out there and I don't try to myself to one person wouldn't let cool pushed it comes to mind English well I would chairman of all our.
I mean he's probably Smart capable guys there is -- -- -- on the White House team hope he's being listened to down there.
Thank senator -- to say thank you.
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