captioned by closed captioning services, inc. >> chris: i'm chris wallace. it's c i am chris wallace. it is crunch debt talks and neither side is backing down. with president obama and congressional republicans deadlocked . we'll get a read on where things stand from two house members . jim jordan chairman. house subcommittee and chris holland top democrat on the budget committee. it is a fair balance on fox news sunday . gop presidential race. we'll sit down with herman cain as we continue our series 2012 101 . all of the talk of default on august 2nd. the fault may be election day

2012. which party is gaining the upper hand with voters next we're. all right now on fox news sunday. hello again from fox news in washington. with just 16 days to go until our counselry reaches the debt limit. the ratings agencies downgrading the nation's credit. what deal is still possible . here to discuss the options are two house leaders. jim jordan is chairman . chris man holland top democrat on the budget committee. welcome back to fox news sunday. >> they will vote on cut, cap and balance and out line what it would be doing. you would cut the deficit next year and cap speppeding under 20 percent of the gdp and raise the debt sealing after congress passes a balanced

budget. congressman jordan you sponsor this . president obama said it would cut medicare and social security more deeply than paul ryan. >> it is near the budget passed this year. it is a common sense american plan. americans know we are spending too much and headed for a cliff and cut spend cap it as a percentage of our economy going forward . we'll do something historic. for the first time in american history pass a balanced budget amendment to the house and september and state. we'll have the requirement that erch has to live under. let's make the federal government and 14 trillion dollar debt. >> sounds sensible. what is wrong with cut, cap and balance and what are the chances it gets through the house and senate and get signed by the president? >> no one should be fooled about this. they are not pro posing a

clean balanced budget committee. they are using it to oppose the republican budget plan. if you look at that plan, it slashes medicaid and slashes deep low in education and protects tax breaks for special interest. they would write that in the constitutionurped their proposal and easier to cut medicare than subsidies for oil and gas companies. you have a majority vote to cut medicare and create special interest loop holes and need two-third toz close tax breaks. the framers would be turning in their graves if they read it. >> what are the chances that it will come home? it is not law. it is dangerous for republican colleagues to say. if you do do that. >> congressman jordan, i want toy give you a chance to respond. there are 16 days left of the

august 2nd deadline . ine if the cut, cap can balance is good as you say it is. we are spending precious time for what is not going to be a law? >> this is something that fixes the problem. in two or three years we have a debt crisis. we have to do big bold things or that is where we are head. calling balancing the budget dangerous is unbelievable. here's what we have to do. look mr. president put a plan on the table and we have 16 days and if the president can put details to a plan let's have a national debate and let the american people decide if they want cutting in spending or requiring a balanced budget or common sense versus the president's plan. >> i didn't say it was dangerous. we want to balance the budget. it doesn't balance that budget

until 2040. it would require you to lift the debt ceiling by eight trillion. >> gentlemen, we have a lot to cover. we'll get back to a bunch of the issues. if cut, cap and balance fails and i must say most people say whether it is good policy or not, the chance of it passing are slim . the most likely fall back and mitch mcconle's plan. it would allow the president to raise the debt limit two and half trillion without spending cuts and there is talk of floating a trillion in cuts. congressman ben holland. wouldn't that be a total failure to who controls the senate and white house to do anything serious about our debt when we have a 14.3 trillion dollar debt. >> i am not a fan of mitch

mcconnel. it said the congress will not take accountability of our own decisions. whether we are driven in that direction by events. i don't know. we want the deal . the president put a grand proposal on the table . if it is a choice. the clock is ticking, 16 days and a choice between the mcconnel plan or nothing. we cannot default on the debt. americans can't choose not to pay the bills. we know that is a catastrophe. i know bills introduced in the house to suggest that you can skate by standard and poors and moody's and chamber of commerce, they say that is not so. >> we'll go in the question of

detault. congressman jordan we'll stay on the mcconnel plan. you are shaking your plan. mcconnel plan and going without august 2nd how would you vote. >> the mcconnel doesn't have the republican vote. there is others who will not support the plan. >> wait, you are saying that the mcconnel plan will not pass the house? >> who knows if there is some. house conservative members and republicans are not supporting the mcconnel plan. i will not support it. as chris points out. it is kicking the can down the road. the american people sent us here to make tough choices. they didn't vote foritous set up a commission . put plans on the table like we did . only plan out there cut, cap and balance plan. let the american people look at it and have a real debate

it is important. we are headed for a cliff. if we don't fix it, now, we are in big trouble. we'll have that national debate. >> and a question. president obama continue to say that he wants a big deal over four trillion spending cuts and tax revenue increase. part of the problem is, and this is something that congressman jordan said several times now. that he's not specific . not specific. especially on the entitlements and spending cuts. we'll put up something that the head of the congressional office was asked. how much the president's laste plan would cut the deficit. >> we don't estimate speeches. we need specifics than was provided tofor us to do the analysis. >> the president will talk about what he wants and revenue increases, but he's

not specific when it comes to what he will take. >> the president has been in discussions with speaker boehner and they were hammering out a lot of the details . the president said the frame work he wants to approach. it is a bipartisan plan . the reason those discussions could not condition because republican colleagues refused to agree to close even one corporate tax loop hole and refused to talk about the folk high end and that were in place in the clinton administration. that is a conversation ender. if you are not willing to talk about ending the subsidies are oil and gas companies for the purpose of reduction. >> let me ask you about this and whatever answer you want . you were reported, one of the key players who forced boehner to walk away from the talks.

understand the fuzzy numbers coming out of the white house. you are unwilling to accept 3 dollars in spending cuts for one dollar of revenue increase? >> think about the president's frame work. here's what he's saying. all of the democrat spend nothing congress . stimulus and obama care and all of the spending in the last congress that we voted against and the american people didn't like is evidenced by the last year's election. hey, republicans vote for the debt ceiling increasine though you campaigned again it and pay for all of that is spend add sult to injury support the tax increases while you are at it. that's what the president said. it is ridiculous. >> assuming that were if i may. or assuming there were specialit i. would you not accept a formula of 3 dollars in spending cuts

and including entitlement for the revenue. and they take place in the outyears. he never tells us what would happen in the first year. that's the only one we can make law about. tax increases are coming . this is the old cliche, it is the football. american people are not falling for that game and not let you promise them f. they were so bad, the democrats just controlled all of the government eight months ago, why didn't they get rid of them. you had a super majority until scott brown got elected. they are hurting our two minutes from getting a deal. >> it is a good question and i will let congressman holland answer it. but the poles show 20 or 25 percent of the americans want a deal that is speppeding cuts . -- spending cuts. >> they also show americans

don't want tax increase. >> you raise taxes on maul business owners and raise it on now with nine percent unemployment and make it that much more difficult for our economy to grow. everyone happeneds that fundmental point and understand the basics. government spends too much. it is not a revenue problem. >> congressman, we know that the ceo, number one driver and policy decision to raise the debt ceiling and a big contractor to the cuts . it hits the top. >> wait, wait. i just read yesterday, if i may. i just read yesterday that barack obama increased our debt 35 percent in two and half years. >> that is 3.8 trillion in two and half years. >> the biggest driver in debt is the economy going down. that is not a policy decision.

>> between those. that is a short-term thing. we all know that gets the economy going and not a long-term driver of the debt. you asked the fundmental question. are they willing to take a bargain. three dollars in cut to revenue. it is in 2013 and nothing in the short term. the president talked about a pay roll tax holiday closing the corporate loop holes and go back to the same rates that were in place in the clinton administration and when the economy was booming with 12 million jobs added. they will not talk about that and the conversation ends. >> this is what we have just seen is a problem quite frankly. there is no effort to get together on either side and brings us to a deadline. 16 days, congressman jordan, you say that the world will not end on august 2nd.

that we can our bond holders with revenue and prioritize the rest of the spending. >> this is the fella who is a treasure official j powell in the george bush administration did an analis of what the government would have to cut. 44 percent in other spendingine if you pay social security and medicare benefits. you have to choose the veterans benefits and unemployment insurance and f.b.i. and faa . world's biggest bond company which already sold, most of the their treasury securities. he said the market situation might resemble the leman brothers collapse. this is not a politician but the market talking. >> standard and poors said if we don't put something real, they are going to downgrade us

whether the debt ceiling gets passed or not. where we are headed. the big crisis that is coming is more important. we get past august 2nd, the president is going to have to lead and make choices and prioritize . there is enough money in the month of august to pay the bond holders and social security recipients and troops in the field. after that, the president will have to do something. he will have to decisions . >> that is preferable to the mcconnel fall back. >> it is a cut, cap and balance. >> before august. >> which is preferable. mccannle plan or cut cap. >> mcconle plan kicks it down the road. >> unless you put what they want in place. >> what is wrong with letting the state's decide. 49 out of 50 states have it.

>> every munic patti and township and government. (talking all at once.) (talking all at once.) (talking all at once.) . you have a provision in there does makes it. (talking all at once.) (talking all at once.) it is not a real balanced budget. >> (talking all at once.) . >> i have to end the segment. >> no, no, no. you allow that to default on the debt. it is going to hurt every family in america. >> you have a response. >> no one wants that but balanced damage is required to live under. >> congressman jorned jord and holland, i am glad we settled and arrive in a deal. thank you for coming in and we'll see how it plays out in 16 days . up next. presidential candidate herman cain and they are shaking hands off cam rampt cain on his plan for victory.

cain on his plans for v ugh, my feet are killin' me. well, we're here to get you custom orthotic inserts. dr. scholl's custom fit orthotic center recommends the custom-fit orthotic that's best for your tired feet. foot-care scientists are behind it. you'll get all-day relief. for your tired achy feet. for locations, see drscholls.com. thank you... from body and bath shops? with olay get what you love at half the price with new olay body collections, tantalizing fragrances and olay moisturizing ingredients that transform lathering into lavishing. olay body collections. host: could switching to geico reon car insurance? or more host: do people use smartphones to do dumb things? man 1: send, that is the weekend. app grapgic: yeah dawg! man 2: allow me to crack...the bubbly! man 1: don't mind if i doozy. man 3: is a gentleman with a brostache invited over to this party? man 1: only if he's ready to rock! ♪ sfx: guitar and trumpet jam vo: geico. 15 minutes could save you 15% or more on car insurance.

this csis didn't need to happen number one . now that the president allowed the crisis to evolve, they can hold the debt ceiling where it is . make the hard cuts like the congressman talked about earlier and continue to reestablish confidence in what they are doing. the problem is, it is all political posturing. they don't need to raise the debt ceiling. pay those things that are necessary and interest on the debt and military familis and social security checks that will work. but what the president and democrats don't want to do is to then make the cuts on everything else.

>> let's talk about whatever is left. i mentioned it with the two congressmen. the analysis done by jay powell who was a top treasury official. did an analis and found you can do that. you have the mon yepay the bond holders and they will not go in technical default. but you will have to cut other government programs by 44 percent. that is almost half. the argument he makes even if you pay medicare and medicaid. you have to choose between veterans or unemployment benefits and military pay or closing the f.b.i. and faa. >> not necessarily . those are scare tactics. what about money that we spend on nonessentials? >> there is not 44 percent of that. chris, not if you are going to try to do it straight down. you have to take program by program and find that mon i.

- money. >> some ages cut 60 percent and some 30 percent. the same across the board, no, that's not how you get there. you take agency by agency and look for those cuts and some will be bigger than 40 percent. >> since we last talked you put out an economic plan that will put america back to work and based on cutting regulations and lowering taxes. you would lower the top individual and corporate tax rate to 25 percent and no taxes on capitol gains. you are talking about doing something about the debt. eliminating capitol gain taxes would add one trillion to our deficit over the next. >> that is the analysis. if you do the analysis. it does not add one dollars.

a capitol tax is a wall between people with money and people with ideas. ideas create new businesss and new businesses create jobs because small businesses have most of the them. let me make a point. the engine to our economic growth is the business sector. this administration has put nothing in the engine and everything in the caboose. we are never going to grow until we lower those tax creates and remove the barrier and suspend taxes on profits. this is why this economy is stuck and stall. >> let me ask you about another aspect. warren buffet said he pays a lower tax rate because he pays the vast majority in capitol gains and he's paying 15 percent and his security is paying at income tax rate. what about the issue of tax fairness. the people who benefit primarily if you riduce it to

ser zero are wealthy people. >> no, it is small business. they are organizing the subchapter s corporations. there are more of them than warren buffet. i don't care about warren buffet. i care about the tax rate of the small businesses if they eck out a profit it goes to personal income and if they get gain on the capitol they will be double taxed. that is the affected . this whole thing about warren buffet is playing the class warfare card. it is talking about people flying around in corporate jets is class warfare. i am concerned about the 15 million people who don't have a job and will not get it with more government responding. they will get jobs when the business sector and engine start to grow again. but what is happening in the future before business men and women start to grow this

economy. >> you said this week. you oppose contruction of the new mosque in tennessee close to nashville. they have operated, muslim worshippers at another site for more than 20 years. what is your objection to the new mosque. >> one of my guiding principles, chris, if you want to know the solution to the problem and understand the problem go to the source close to the problem. i talked to the people in the community . here's their problem and i sympathize with them. our constitution guarantees separation of church and state. islam combines church and state. they are using the church part of our first amendment to infuse the mosque in the community. sharia law is what they are trying to infuse. >> wait a minute. are you saying that we should

ban all muslims from worshipping . >> no, i am not saying that. what i am saying that american laws and american courts. that's what the people are saying and that's what people are saying. >> having a mosque is not. >> chris, i also happen to know it is not just a religious mosque. there are other things going on base upon talking to the people closest to the problem. it is not just a mosque for religious purposes. this is what the people are objecting to. >> they held a couple of rallies in 2009 and last year to support the palestinian including hamas in gaza. this is going to a county judge who said the people, there may be a question about the open meetings, but the people who brought suit haven't been hurt and they have a right to build the mosque. this is not ground zero in new york . not hallowed ground.

don't americans have a right of whatever religion under the constitution which you speak so much about to free speech and freedom to worship. >> to the people in tennessee, it is hallowed ground. they are objecting to the intensions of trying to get sharia law. that judge may have ruled but the case is not over yet. i believe it will go all the way to the supreme court. it is hallowed ground to those people. >> any community said we don't have a mosque. >> go back to the fundmental issue that the people are objecting to. they are objecting to the fact that islam is both a religion and a set of sharia laws. that's the difference between ourorth religions and religious purposes . the people in the community know baste best and i side with them. >> any community if they want

to ban a mosque. they have a right to do that. that is not discriminating on the their particular religion. but there is an aspect of them building that mosque that doesn't get talked about and the people know what it is and they are talking about it. >> i don't want to beheet a dead horse. i will ask you one more question. as this gets back to a earlier controversy where you know. if you are not comfortable with the body -- appointing a muslim to your cabinet . someone growing up in the 50s and 60s, how do you respond to those who say i am doing the same thing. >> i tell them it is totally different. i grew up like you said in the 50s and 60s. i grew up poor in the civil right's move after the civil right's movement and went in to corporate america when

corporations put blacks in . we had laws that were restricting people because of their color only. that's what that situation was. >> aren't you willing to restrict them. >> i am willing to take a harder look at terrorist. that's what i am saying. i know there is a peaceful group of muslims and i have no problem with that. i have never discriminated against anybody because of religion or sex or origin or anything like that. i am simply saying i owe it to the merch people to be cautious. i am going to err the side of caution than side. >> and last month, forgive me for saying that. michelle bachman has taken much of yours: you are back at

one percent . why can someone pick you over bachman. what is the choice? >> the choice is simple. my entire career has been problem solving, not politics. that poll may not refrect - reflect it. the numbers reflect a different story. if you look at the latest gall up poll and in terms of positive intensity. i lead all candidates in terms of positive intensity. my name id went from 21% to 48 percent. >> are you different on the issues? >> we are close on the issues. if we are different on the fact that i have more direct hands on problem solving experience. that's where we differ. i said that before. my entire career as a problem

solver and business executive . the problem solving approach is where i have stronger credentials than literally many of the other candidates. >> we get to the bottom line and in your experience, sam brownback finished third in the straw poll and felt after all of the campaigning, he had to drop out. don't you have to finish that well in iowa. >> i believe we will finish in the top three. >> and if you don't, would you drop out? >> no, here's why. the nomination process doesn't stop with the early ones only. there is a lot of other states on the back end of the process that could swing it. no, that is not a determining factor. the biggest determinate factor as to whether i stay in or drop out is not if i finish third or 40. but the support we are get people out there in the

states. >> i want to plug the fact that you have a new album. >> it is out since 1996. >> it is reissued called come to sunday -- this is sunday morning and we'll not have time to play it. but we have listened to it and it is wonderful . there is a song called sunday morning. it is always a pleasure to talk to you. safe travels on the campaign trail . you in the iowa debait . cut, cap and balance or a fall back plan. back with the panel in a moment. ack plan. back with the sunday panel, in a moment. [ grunts ]

[ male announcer ] built like a volkswagen. the 2011 tigua [ grunts ]

the problem is members of

congress are dug in into various divisions because, they have boxed themselves in with previous statements. >> we for the president to lead . put forward a plan. not a speech, but a real plan . he hasn't. we will. . president obama and speaker of the house john boehner pointing fingers over who is to blame for the current steal mate. bill crystal of the weekly standard and don pedesta and liz cheney and fox news political issue analyst juan williams. >> they are pushing for votes related to the balance budget amendment. i understand that it appeals to the base and jim jordan makes a passionate argument of why it is the right policy. shouldn't we have done this

months ago? >> i continuing would have been better if we did it a month ago. they hate to vote for debt ceiling increase . they dislike to give the federal government to have more money . pile on more debt . so, i think it is very important on tuesday they will pass a debt ceiling increase with spending cuts and spending caps. it is no longer said that the house republicans have their head in the sand. this yen this it is on the democrats and president obama to say are you against the spending cap or cuts and balanced budget. >> that gets us john to the big republican argument about the democrats and this president that he keeps talking about a big deal.

but there is revenue increases and fuzzy when it comes to spending cuts especially entitlement cuts, why? >> he put a frame work on the table . it includes real restraint and discretionary spending . he put forward 100 billion worth of cuts in health care that he put forward . i think he's gone further in the discussions with speaker boehner i don't think he's not been specific in those areas. >> wait, wait. he was in the new's conference . let me ask the question. he was what intitlement reforms would you make and heg only mentioned one for medicare . >> and he's got specific cuts in the budget with respect to medicaid and medicare which are more of what the republicans ran against cuts in medicare and flipped around

and said now, we have to privatize and take 1.4 million oust medicaid. he's specific and a negotiation and we are running the clock and wasting time and that is tragic. >> liz? >> i think if you want to look at who is serious about spending cuts. the president's 2012 budget includes over seven trillion added to the national debt . cut spending by six billion dollars . at this point, the president will not put a plant on the table. he just want to demagogue. i have watched the debate from wyoming. it looks like politicians in this town, they want to kick the can down the road. you have a group of republicans, particularly in the house and some in the senate like jim jordan who say no, we have a great train of

debt that is hurling down the track to us. we have to get spending under control. >> we have divided government . you have the democrats controlling the senate and white house and republicans controlling the house eventually. people have to be willing to give. >> republicans and democrats both need to be able to raise the debt ceiling. we can't leave it where it is. given that, the president and democrats have to understand that people are not willing to vote for the increase without change in terms of the spending cuts. >> let me ask you this question . let's just assume and i understand the republican argument that all of the cuts that the president talks about are fussy. if you can get three dollars in spending cuts and one dollar in revenue increases, would you make that deal. >> absolutely not. tax increases that the president wants.

tax increases right now are going to be job killers and going to lead to the slowing economic growth . the president himself acknowledged in 2009 don't raise taxes in the middle of an economic down turn. >> taxes wouldn't kick in. and you know as well as i do. they are looking ahead and know they will have massive increase in taxes and obama care and massive regulations and new tax increases in 2013. they will not hire . taxes are not the issue and republicans are right. absolutely not. we have a dollar for spending cuts. >>ip am glad to hear that the debt ceiling is needing to be raised. i am amazed that the republicans are say is just a arbitrary deadline. we heard from moody and

chairman ben bernanke. if it was about taxes. the interest rate is high in this country. they are at a historic low and three dollars in cut which is is what republicans want. you are saying, let's pass a super rich and share some of the for dealing with the deficit and still republicans say no. it lacks the element that is key and reasonableness. enough of the political posturing. republicans will have a package on the floor come tuesday when they have the vote in the house. that is empty and it rattles around. >> and i mean, it is 16 days and counting and where do you get a deal? you don't get a deal and i am against the closed door negotiations. let people put their cards on the table and not have a poker game that is going on and

everyone and liars and poker and all of that stuff. house of representatives are going to pass legislation on tuesday. that is different speeches and closed door negotiations. >> where is that getting us as it will not pass the senate. >> how do we know? let them offer the amendment and alternate legislation. he is the president of the united states and no proposal on the floor by the democrat majority and the president of the united states to deal with this problem and the house republicans, to their credit, they are going to pass actual legislation to raise the debt ceiling. >> i have to break in leer and -- in here and come back and talk . focus on the political impact and the debate that the debt ceiling may have. we'll be right back. presidential race. we'll be right back. hey, the new guy is loaded with protein!

really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure hh protein.

ensure! nutrition in charge!

>> who ever the republican nominee is, we are going to have a big serious debate about what we believe is the right way to guide america forward and win the future . i am confident that i will win that debate. president obama acknowledging the current debate over the country debt. white house officials do seem gin winly confident that they are winning. are the argument politically. the president comes off and

upons awe big deal and wants to have a balance which is what people in the polls and most people want spending cut some revenue increase. are they right to feel -- forget the substance. are they right to feel good about their position . >> if you look at different polls, gall up and rasmussen and the president's approval rating is drifting down and in the last gal up higher disapproval than approval . match up against a generic republican candidate loses by five points. i think that inside of the beltway everybody thinks that obama is out maneuvering the republicans. but the longer we have the debate about the debt and deficit and the failure of the stimulus programs. i think had hurts the

president. >> there is not one of the republicans running who will beat president obama head-to-head. that is like harry potter running against luke skywalker. no reality to it. >> skywalker that is a hard choice, harry potter? and if you look at the numbers right now, it is over whelming and republicans will vote on a tax hike on the super reach to get a deal. >> juan, this president came in to office and elected to fix the economy which we all agree he hasn't done . successly he was going to end the partisan rancor and make the town work. if they can't get a deal and as this goes on, doesn't that hurt him? and one of the reasons people voted for him he was going to fix the system. >> he is not working for a deal. he's willing to compromise and say as you pointed out earlier.

there is too much spending. let's have substantial cuts. eric cantor said in terms of the bide bide negotiation, two trillion, and eric cantor would not say we'll have increased revenue to go along with it. >> this president is out of step with history and most of the american people are. he doesn't fundmentally want to create the jobs. i will give you three examples. in neither press conference did he at any time say the word private sector. he believes more growth and government hire people . secondly at one point in the second press conference . he said he doesn't think he ought to be able to keep more than he needs from the government. the notion that the government decides what the american people need or keep is not a recipe for economic health and is not captitalism. he want to increase taxs and

get through the initial crisis so he could spend more on infrastructure it is an insatable appetite for spending! it is irresponsible. and i think that is so fundmentally wrong on the facts. president obama proposed to take the domestic government down to the size of the eisenhower administration. that is in his budget. we have taxes that are lower than they have been since 1950. >> but we are in a recession . >> but the bush tax cuts contributed to that particularly for the high end. what are the republicans proposing? go further than that. with and now we are in a hostage taking situation on the debt limit that will be catastrophic, if we go over the deadline. this is crazy hostage taking

since in dog day afternoons. >> very good reference. that is our second movie reference. >> we like movies around here, right, chris? they have to come to the grips with the fact that it would be catastrophic and ronald reagan said in 1983, and moodies said and ben bernanke has said. if we don't raise the debt limit by august 2nd and the 44 percent in cuts take place. it will do nothing but drive the economy in a second recession . that may be a cynical attitude of the house republican leadership. maybe that's what they want which is to damage obama by damaging the economy. but the american people see what the frame work is. >> i was quoting what the president said in the press conference. he added more to the debt than all previous presidents combined. all you have to do is find. all you have to do.

all you have do do. let me finish. (talking all at once.) juan. stop it. >> and he did nothing. but 9.2 unemployment. you can find 1.4 trillion in savings if you would repeal obama care. he refuses to put obama care on the table. >> every upon independent now said -- (talking all at once.) . the bush tax cuts and medicare part d. you guys keep talking about bush tax cuts for the super rich. >> wait, wait. everybody calm. what is going to happen? all you are doing is repeating the arguments that we have heard. everyone of you agree that we cannot get past august 2nd without raising the debt ceiling. >> yes. >> we absolutely should not.

>> republicans will pass cuts. >> and then prioritize the federal expenditure fist there are a few days or weeks where the debt ceiling goes past august 2nd . the social security and medicare and defense is taking care of . short-term increase of 100 million. >> let him play it to the american public. 100 million in the debt ceil the president veto it why? because it is not his vision of what should happen. >> john, what is the end game? >> i don't like it but some version of mcconnel which is cut the debt 1.3 or 4 trillion and get it past the election and then fight it out next year in the election . president obama will frame it and republicans can answer. >> 30 seconds. what is happening. >> the president will lose the election in 2012. >> not november 6th.

>> i think the republican in the house will pass a spending cut along with a debt limit increase and then it will go to the president and up to him as bill said explain he's demanding we not act. >> outrage from wall street is going to be so intense. that republicans will have to say yes to something? a. thank you panel and thank you for staying inside of the clock . don't forget to check out panel plus. without any time limits we'll pick up with the discussion on our website on fox news sunday . we'll post it before noon eastern time. up next we hear from up. thanks to the venture card from capital one,

we get double miles on every purchase, so me and the boys earned a trip to dc twice as fast! oh hi! we get double miles every time we use our card. and since double miles add fast... one more chariot please. ...we can bring the whole gang! i cannot tell a lie. he did it. right... it's hard to beat dole miles! read mlips -- no new axes! [ male announcer ] get the venture card from capital one, and earn double miles on every purchase, every day. go to capitalone.com. what's in your wallet? so, you're a docrat right? she is the greatest thing ever. honey bunny. [ babbles ] [ laughs ] we would do anything for her. my name is kim bryant and my husband and i made a will on lzo

it was really easy to do. [ spits ] [ both laugh ] [ shapiro ] we created legal zoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. legalzoom.com we put the law on your side.

and today, we're re-inventing aspirin for pain relief. with new extra-strength bayer advanced aspirin. it has microparticles so it enters the bloodstream faster and rushes relief right to the site of your tough pain. ♪ in fact, it's clinically proven to relieve pain twice as fast new bayer advanced aspirin. extra strength pain relief, twice as fast.

>> chris: time for comments you posted to our >> time now for comments you posted to our blog, and many of you had questions about what happens next like we didment bret nichols writes if congress and president didn't have a deal, would the benefits of all leaders and staff also be suspended along with other payments. muriel from legislation asks, how much of the debt ceiling if any would be affected by the health care law known as obama care. and finally, ann healy, why cut social security for those of us elderly women who only have social security as our income the? let's cut foreign aid from countries that do not support us? where is the common sense. please keep our comments coming to us. we want to wish the u.s. soccer team all the best in the final. have a great week and see you next fox