lots of detail here. good command of the issue and we appreciate you coming on this morning. thanks for all your calls for the last three hours. "washington journal" runs every day of the week starting at 7:00 eastern time. tomorrow's guests on the fourth of july will colin bauman of the american enterprise group. we will also talk with bruce fleming from the naval academy who has written a piece in" christian science monitor." we'll talk with cat kyley of the national journal. that is our lineup for the fourth of july on "washington journal" enjoy the rest of your weekend and we will see you tomorrow. ♪

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] >> this morning, "newsmakers" senator rand paul. he talks about the debate over raising the debt ceiling. after that, senate armed services committee would senior military commander later. , the president's top home security adviser tom brennan unveiling a new counterterrorism strategy and afghanistan. >> shogash had decided several days before mckinley arrive that he was going to kill him. he had gone out and bought a

pistol and the fall of mckinley's whereabouts in the newspapers which were reported in great detail. he began tracking him throughout the fair. >> on december 6, 1901, two fatal shots were fired at president mckinley. tonight, scott miller looks at the president and his assassin and the changing era in which they lived on cspan's "q7a." >> welcome to news "makers." our guest this week is kentucky senator rand paul joining us from capitol hill. >> good to be with you. >> our reporters are major garrett. >> do you believe the august 2 deadline this doubles by secretary of the treasury tim geithner is a real deadline?

if you were to describe your -- to your constituents and condin kentucky what the consequences would be if we did not reach the debt ceiling? >> ultimately, if a country's keeps spending more than it takes in, about the deadline, it has been moved three or four months and there is already rumors from the of ministration they could move it again. the real thing is that people need to realize we bring about -- we bring in about $200 billion of revenue every month that we spend about 20 billion on interest. there are plenty -- there's plenty of tax revenue to keep paying our debt of our taxes and never default. i'd the responsible thing for the president to do is to take off the table and say we won't default and we will continue to bear interest matter what because we want to keep our good credit rating. we think it is inappropriate and right thing to do.

>> the presence of a press conference today that there would be significant things that the united states government could not do if they default situation was to occur. the bondholders could be paid by other obligations already guaranteed could not be financed. we have to make very tough choices about things we could not do and prioritizing. do you agree? >> you are right. we might have to prioritize for a change in the true legislators and decide what we have money for more we don't have money for. i am reminded of yesterday talked about when he was governor of nebraska, there was a red line and he had money above the red line and no money below. he had to make choices.

for four years in washington, we have been adding program after program. we cannot do that anymore. we have to make tough choices. we only bring in revenue for about 70% of what we do spend. there would be significant cuts. you could still pay the interest and pay social security tax and the soldiers' salaries but there would be a lot of stuff like the ad-2 programs which reduplicate programs to train workers. you might have to get rid of them. >> i would like to ask you about the keeper of that august 2 deadline, timothy guy. geithner. he has said he may leave after this deal is done but who do you think would make a good treasury secretary? >> i have never been that excited about who the president has picked to fix us with our

financial problems. ben bernanke and tim geithner did not predict the housing bubble and i think their economic policies created the bubble. and the recession and the joblessness. i put that the feet of ben bernanke and tim geithner. that figure was a mistake and wrong policy to put them into high office. i think they felt was during the housing boom in prices. it would have to be somebody who believes in the marketplace and that interest rates should not be manipulated by the government and credit should not be manipulated by the government, and we shall allow the marketplace who help us make wise decisions about what price of things -- what price things should be. >> who would be your dream candidate? >> it is probably better to talk about the policy. sayn't think i will get any nor will republicans must be getting a president and that

will be a year or two in the coming. >> do you think this treasury secretary would be the kind of anomaly that could be subject to a filibuster? >> it is are to make a prediction on what people will do not knowing who the is. we should try to get someone who has an appreciation of the marketplace and business. the biggest complaint i have had of this administration and the talk to business people everyday, they think that is the most anti-business administration we have had. their reports are that many of the folks in this administration have never run businesses. we would like to see some business experience but i would also like to see someone who believes the free marketplace

and do believe in capitalism and believes in the greatness of what america has produced in the past and could produce the future. that does not mean we need more shovel-ready jobs. we need more relief for businesses that are creating new jobs. i don't think that met this administration understands that. >> the impasse of the debt taxes over a tax. is there any tax increase at all put on the table by the administration? is any of that acceptable to you? >> last week, 70 of us voted to

get rid of the ethanol credit. we're more than willing to look to the tax code. when we look of the tax code, if we are going to do over all tax reform, we want lower rates and simplification of rates to go along with getting rid of special tax cuts that the sport the tax credits and tax deductions that sometimes distort the marketplace. if we are to pick out 100 text the russians to get rid of, that will punish the marketplace and make it more difficult for jobs. the vast majority of economists said it is not a big deal to read -- increased taxes during a recession. the democrats think the rich should have more a burden. we already have a progressive tax cause of the rich to pay more in taxes. if they want the rich to have more of a burden in trying to figure out how to correct the debt problem, one way we could do it which is a common ground

is means testing on benefits. that would allow the rich to absorb more of a burden and would allow them to pay more for their medicare and i think this would please the democrats and it would be the compromise because republicans, most of us don't want to raise taxes but we would accept the risk having more of the burden by reducing their benefits. >> the tax code is pretty complicated. we keep hearing suggestions about delaying the decision making and doing a temporary measure. would you support a temporary fix to tackle the bigger subjects? >> i was part of a group this week that said no more, we are tired about talking about extraneous issues. there was not one minute of debate about the death still in any committee. we have not had a budget in two years or more per share -- or

appropriations bill. i'm part in the freshman group that says we will not let them go to any issues if we have a say so next week will filibuster until the dog up the debt ceiling -- until we talk about the debt ceiling. we will present our own proposal next week. that is to raise the debt ceiling. we will vote in favor of law raising the debt ceiling next week if we can. it will be contingent upon passing a balanced budget amendment to the constitution. american people don't want us to raise the debt ceiling and keep doing what we have been doing. only 40% of american voters approve of what we were doing but it has been a disaster. i am not completely without the sense that we may need to raise the debt ceiling. i will only do if we have significant budgetary reform and that means you have to balance her budget every year. >> there has been mention of the

tea party caucus. what are your thoughts on how tea party groups are influencing the way congress operates? there is a lot of belief in uniformity but i am curious how you think they are affecting congress. >> the one uniform proposal comes out of the tea party which is in universal agreement is that the number 1 concerns of the country and for our people is the death. we are board about a looming debt crisis. we think the nation may not be able to withstand this amount of debt. we are not alone you. . admiral mullein is not a tea party person but he said the biggest national security threat

is our debt. people are waking up because the debt is a problem and women ababa to withstand -- withstand it. there was an editorial this week that said if interest rates go back to their historical average of about 5.5%, we will add five trillion dollars more to the debt next decade. it is unsustainable. we are headed for a crisis. the most predictable crisis we have ever had in our country but we have to do something now and it will take something different than business as usual. what's unusual is that we will talk about a cut over 10 years but it won't happen. nobody believes it. we cannot bind future congresses. the only way we would ever change the culture of washington and the future of our country is to change our constitution. >> would you say that the main effect of the tea party has been to have this debate about the debt and not simply raise the debt ceiling?

i think we are controlling the debate. >> the tea party and those of us who are concerned about the death, i think we of the public with this, we are monopolizing the public debates, and we are still losing most of legislative battles. you don't always win in the beginning. i think we are shaping the debate and by all means, i think we're having and input will come out of this. >> if i recall correctly about the constitution, 18% spending as a percent of peace -- of gdp and a super majority go the bathroom. i grew up in california. california has a similar bias against tax increases. legislators have to reach a certain supermajority to increase spending. california has been bedeviled by

budget -- budget crises last decade. even components like this don't guarantee you will not have budget crises. what would you tell the american people will be the silver bullet of your kind of constitutional amendment. >> there is no guarantee that anyone law will make us better legislators. it works in many different states. when we have this debate, there will be an important point. we have to examine why the california budget amendment does not work but in many states it does work. california has to balance their budget but they are allowed to balance it with borrowed money. they are reaching limits out

there. california and illinois are in danger of bankruptcy. there are good examples. i think 49 states have some kind of provision about balancing their budget and some are better than others but we want to it to be a strong provision because the system is not working. anybody who is objective and examines the way washington is working would say is absolutely broken. >> are you close to having the votes to pass this in the senate? >> i would never acknowledge that. i would say i am an optimist. i see the opportunity and difficulty. i am an optimist. i think we've got 47 votes hall

47 republicans have signed on in the senate. in the house, we actually are very close to getting the 2/3. i would like to see the house get the two/three. this is an incredibly popular issue. it almost pass before and lost by one vote in the senate and one vote in the house. 70-75 percent and the democrats in the public of the voters are "for this. republicans also, independent also, it polls across party lines. for democrats who want to vote against the budget, but in europe -- at your peril. let's get it passed for the good of the country. this is beyond party politics. republicans have been part of the problem. it is not just the democrats. we both need this restraint. we don't get this restraint, the

country is going to hell and a handbasket. >> there are different iterations of a balanced budget amendment. the ones in the mid-1990s is different than the one you're looking at now. when that work with democrats to find something that would get them to come on board. you said you need 50 of them in the house. when a work with them on that? >> you have to start somewhere. they have not introduced any thing and we have introduced something. the only way to know what happens is you introduce what you want and if you can get some people who say we are 10 votes a vote and you talk to the people to get the 10 votes. we have to get started and see of any of them are willing to discuss it with us. if the democrat party will uniformly opposed a balanced budget amendment, we won't get

to the point of compromise. if 40 or 50 of them in the house and 20 of them in the senate want to get together and say we will do it if we get this, then, of course, there will have to be discussions. i worry about giving up the super majority to raise taxes. i don't want this to be a prescription to raise taxes. i think that would be devastating. >> if i could switch gears -- a want to ask you about your dad. if i haven't i was conservative event or, why would i vote for ron paul -- ron paul instead of .hicag >> in 2003, he said explicitly that the housing bubble is going to get bigger and we will crash. is because we are subsidizing fannie mae and freddie mac and telling people to buy houses with no down payment.

he has also been somebody who has been a little different than some republicans in that he believes our foreign policy should be constitutional. we should not go to war simply on the word of a president but you should have congressional debate and congressional authorization for war. that is what the constitution says. many in republican party are coming in his direction on this. the debate over libya really shows the influence of ron paul in the republican party. >> libya is supposed to be on the senate floor next week. you said you'd like to filibuster would it ever is on the floor to bring up the debt. does that mean you would filibuster a move to bring the libyan resolution to the floor? >> i have been one of the most vocal in the senate for debating

libya and bring it to the floor. i wanted to bring it to the floor when it was still within the realm of law. the president had evaded the war and showed utter disdain for the constitution and congress. it is not good to tell the american people that it is not a war because we're not shooting back. we have already missed all the deadlines. we were not supposed to be in session at all next week. libya would have had to occur the following week. we insisted by coming back next week to talk about the debt and we want to put up a proposal. we'll actually introduce a proposal to raise the debt ceiling contingent on a balanced budget next week. i did libya can wait another week. >> what is your reaction to the

president's press conference on wednesday and his suggestion that his two daughters are more disciplined and officials about their home more than congress is about is -- about its business. >> i sense a certain air of arrogance of the american public is not happy with. the next day, we wanted to debate it. the democrats adjourned and i ask for the president was. he was campaigning in fund raising in philadelphia. the vice president was campaigning in fund raising in las vegas. it is galling that he gets up and from the american people and says that congress is not doing their job. here we are standing there trying to get an agreement and we can get a boat to the floor because the democrats prevented it. he is jetting off to go campaign. >> let me ask you about home state politics.

you're not supported in your primary by the senate minority leader john boehner. will you suggested for reelection? >> that is a long time from now that senator mcconnell and i get along quite well. he has been a great leader and his balanced budget amendment. he has gotten all 47 senators together doing this. i cannot imagine anything but supporting him at this point. >> what would you say to those who revere the constitution? and it is polluting to the comte -- constitution. >> it gets back to the whole california thing.

the california balanced budget is not working so may be balanced budget amendment has to have more detail. those are things that can come out in the debate and are open for discussion. the fear is that we really don't want a budget that balances at 25% of gdp buried right now, we're spending one in $4 in washington where as two or three years ago, it was one in $5. we have rented out the percentage of the economy that is being consumed by government expenditures. we want a smaller government. no matter what the tax rates are, 18% is about what comes in. at the 1950's, the high taxes were 70% and 90% it brought about 18% of gdp. it is hard to coax more than that out of the economy.

folks sometimes leave or take their capital overseas but taxes are lower in another country. 18% is historic late -- 60 years we have not got much more than that. >> do you expect the debt limit issue to be resolved in one fell swoop or will there be multiple bites? >> at least 12 of us have said that there need to be significant cuts, statutory caps, and a balanced budget amendment to the constitution. we think washington is so broken -- but people don't want the same. they don't trust the folks appear running the show. they want something different.

the people of conduct would not understand it at all and would rightfully vote against me and i said let's raise the debt ceiling without a billion there or in process. >> does that mean you don't trust mcconnell or harry reid or john bannjohn boehner? >> it is not about any individual. mitch mcconnell has led the fight to get all 47 on board for a balanced budget amendment. i don't place the blame their. i don't trust the system of the way we have been appropriating money. i don't trust the lack of restraint. for about one of the 50 years, our constitution really did restrain the size and growth of government. we believe in what were called the constitution calls the enumerated powers. there was this of the things that could be done in washington. we then got his expansive notion

of the commerce clause to how they are justifying obama care. it is the notion that government can do anything. i will jokingly say to my speeches of my shoes were made in tennessee, they can regulate my walking in kentucky. that was not what was intended by our founding bras -- fathers. they want free trade. that it won kentucky setting up barriers and that is what this is all about. it was not about really getting involved with all the manufacturing with in the state and having a huge government presents from washington in all the states. >> bop's we're out of time but may be a question about your optimism. >> thank you for having me. >> let me turn to you. the senate is in session this week and we have heard that the president and vice president are coming up to capitol hill to meet with democrats. how do you see the piece of this

coming together. >> i don't see them coming together. i just don't see the of the test. hi --the impetus. i don't see the party is moving beyond their entrenched positions. i would characterize this week as a week of entrenchment and deepening the differences. if you want to use a military metaphor, they are digging a trench is deeper and the president's press conference was about establishing a democratic point of view and pushing back out and there is a bit of comment on republicans which did not go well. you cannot create a deal by suggesting that your opposition party leaders in congress are less disciplined than your 10 or 13-year-old. things are tougher than they

were two weeks ago and i don't see the end game yet. >> i agree. the fact the work like a girl is not a way to get people on your side o. i things these guys are stumbling toward a cliff. these guys are screaming at each other and they don't know the cliff is there. if there was to be a solution, it would be that they kicked the can down the road. republicans say that president obama is ultimately responsible for the health of people in the area. ultimately, you saw the president preparing his base for the eventual concession. frankly, h