default. a default that would of had a devastating effect on our economy. it will cut about $1 trillion in spending in the next 10 years. the result would be the lowest level of annual domestic spending since dwight eisenhower was president. but at a level that allows us to make investments in education and research -- research. we also make sure that these cuts would not happen so abruptly that they would be a drag on a fraud trial -- a fragile economy. the ultimate solution must to balance. despite what some republicans have argued, i believe that we have to ask the wealthiest americans to pay their fair share by giving up tax breaks and special deductions. despite what some in my own party have argued, i believe we have to make some modest adjustments to programs like medicare.

that is why the second part of this agreement is so important. it establishes a bipartisan committee in congress to report back by november with a proposal to further reduce the deficit. it will then be put before the entire congress for an up or down vote. in this stage, everything will be on the table. it will hold us all accountable for making these reforms, tax cuts that both parties would find objectionable would go into effect if we do not act. over the next month, i will make a detailed case studies lawmakers about why i believe a balanced approach is necessary to finish the job. is this the deal would have preferred? no. i believe we could have made the top choice is required on entitlement reform and tax reform right now, rather than through a special congressional

committee process. but this compromise does make a serious down payment on the deficit reduction that we need and gives each party a strong incentive to get a balanced plan done before the end of the year. most importantly, it will allow us to avoid default and end the crisis that washington imposed on the rest of america. it ensures that we will not face the same kind of crisis again in six months or eight months or 12 months. it will begin to lift the cloud of doubt and uncertainty that hangs over our economy. this process has been messy, it has taken far too long. i have been concerned about the impact that it had on business confidence and consumer confidence and the economy as a hold over the last month. nevertheless, ultimately, the leaders of both parties have found their way it -- their way toward compromise.

i want to thank the american people. it has been your voice is, your letters commodore e-mails, -- your letters, your e-mails, that has caused us to act. we are not done yet. i want to urge members of both parties to do the right thing and support this deal over the next few days. it will allow us to avoid default. it will allow us to pay our bills. it will allow us to start reducing our deficit in a responsible way. it will allow us to return to the very important business of doing everything we can to create jobs. that is what the american people sent us here to do and that is what we should be devoting all of our time to accomplish in the months ahead. thank you very much, everybody. >> [inaudible]

>> senate leaders made announcements from the floor this evening. take a look now at harry reid and this mcconnell. -- and mitch mcconnell. been locked in partisan gridlo gridlock. today i'm relieved to say that leaders from both parties have come together for the sake of our economy to reach a historic bipartisan compromise that ends this dangerous standoff. the compromise we have agreed to is a remarkable -- is remarkable for a number of reasons, not only because of what it does but because of what it prevents, a first-ever default on the full faith and credit of the united states. sometimes it seems our two sides disagree on almost everything, but in the end, reasonable people were able to agree on this. the united states could not take the chance of defaulting on our debt, risking united states financial collapse and worldwide depression. america and the world have been

watching our democracy expectantly and my message to the world tonight is that this nation and this congress are moving forward and we're moving forward together. reaching a long-term accord that would give our economy the certainty it needs was not easy but our work is not done. leaders from both parties and both chambers will present this agreement to our caucuses tomorrow. senate democrats will meet at 11:00 a.m. to pass this settlement, we'll need the support of democrats and republicans in both the house and the senate. there is no way either party in either chamber can do this alone. as president lyndon johnson said -- and i quote -- "there are no problems we cannot solve together and very few that we can solve by ourselves." democrats and republicans have rarely needed to come together more than today. i know this agreement won't make every republican happy. it certainly won't make every democrat happy either. but both parties gave more ground than they wanted to and neither side got as much as it had hoped. but that is the essence of

compromise, of consensus building, and the american people demanded compromise this week and they got it. mr. mcconnell: madam president? the presiding officer: the republican leader. mr. mcconnell: this is an important moment for our count country. i appreciate the majority leader's comments and want to say a few words to our colleagues who have been so patient over the past several days. and whose ideas and encouragement have been so helpful in getting us to this point. first of all, let me reiterate that before any agreement is reached, republicans will meet to discuss the framework that the white house and congressional leaders in both parties think would meet our stated efforts to cut spending more than the president's requested debt ceiling increase, prevent a national default, and protect the economy from tax increases. and to that end, i'd like to say to my republican colleagues that we'll be hold b holding a confee meeting in the morning to discuss the framework and to

give everyone a chance to weigh in. but at this point, i think i can say with a high degree of confidence that there is now a framework to review that will ensure significant cuts in washington spending. and we can assure the american people tonight that the united states of america will not for the first time in our history default on its obligationsnsnsns president obama and republican congressional leaders reached agreement tonight on a compromise to allow u.s. borrowing in exchange for more than $2 trillion in long-term spending cuts. officials say the john boehner telephoned the president this evening to said the agreement had been reached. no votes are expected in either chamber until tomorrow to give lawmakers time to review the proposal. the house returns tomorrow at 10:00 eastern and legislative business at noon. the senate at 10:30 eastern.

the british house of commons is in recess until september. current and former recent -- newspaper editors discuss the recent phone tapping scandal. analysts discuss the employment of new burk -- rupert murdoch's media holdings. panelists include the former editor of the british tabloid "the daily mirror." this 90-minute program was hosted by a charity organization that promotes independent journalism.  >> imad in that you are pretty

troublesome. -- i imagine that you are pretty troublesome. i want to introduce to you gave -- dave banks. a seasoned writer. he is currently not tied up with anybody. jane martinson and martin moore. case to youken his to adjudicate? >> not exactly. i can talk about that. >> do not. >> later.

>> at least he did not hack. >> somehow we have gone below estate agent. -- below 8 state agent. [laughter] given that you have launched your investigation into allegations, first of all, when you were on deck -- >> a long time ago. we were struggling with felons -- phones that looked like bricks. i would not have condoned hacking.

it is illegal. i am saying far too much. >> i would like to know what slight people will be coming from. >> in your lofty position, looking in from outside, the think this story has been overblown? >> -- do you think this story has been overblown? >> i think it has been fuelled by public outrage and partly because of the political aspect toward rupert murdoch. it has taken a long time for them to be dragged into this story brigit they are less attractive political targets.

-- this story. there less attractive political targets. the last government was so negligent about to -- about making sure and they did not initiate any public inquiries. >> [unintelligible] >> i do not think it is a conspiracy. it is not a coincidence that the reason the labor party has decided to get so high on its -- up on his high horse is because rupert murdoch decided to withdraw support from labor in 2009. when he conveyed that decision to gordon brown, according brown said, i will destroy you. -- gordon brown said, i will destroy you. >> that is a good note to move on. [laughter]

>> i do not think it was overplayed. >> what i was going to ask you is that i do not find the police taking 25 quid for a phone number of multi shocking. -- remote lead shocking. -- remotely shocking. we are talking about 8 major revolving door situation. >> the number of times he met news international, that was the final straw. the man you had been arrested, the man who was giving his life to andy coulson, but was advising the prime minister.

he had a job advising the police commissioner. there is nothing in this. twice. first camp and then -- that is not about, i do not agree. it is a much smaller quantum. it stinks, doesn't it? you are being advised by someone. you never do a proper police inquiry. that really does stink. the revolving doors of jobs between a columnist, it does not look good. >> what about john stevens?

i mentioned in the other night and the next morning, there was a tape recording on my desk from him saying, it you will be hearing. earlier in the week -- but was two weeks ago. unfortunately, i have heard nothing. i have send e-mails to the secretary saying, i want to hear. it was in a very short space of time that he move from being the chief of the metropolitan police to being a major columnist "news of the world." a remarkable turnaround. martin, the media standards and trust may not be known to everybody.

>> please speak on both. >> ok. if you up of us have been talking about this for a 40 -- a few of us have been talking about this for a cure nouns -- for a few years now. we have not gone very far. we have consistently done so and we have gotten increasingly frustrated. a couple of months ago, we said, we have to -- we have to pull this into a campaign. we did that. we had a formal launch prepared

for the sixth of july. we had no idea about the story. the we brought forward the start of it. that was part of a petition that was signed by thousands of people. >> an inquiry into what? >> we specifically laid out a manifesto. the areas that we thought needed to be looked into. it included the legal information gathering and the relationship between the press on the police and the politicians. we met all the party leaders. the walk them through a successful inquiry to say, you cannot do this on their terms. you have to do this on broad

terms. >> you hinted that it was much wider than it news international. the focus on news international, it is not a british operation. i did in trying to find any other country that allows a third of its media to be controlled by people who have no accountability and the country in which they're operating. >> that is why rupert murdoch became an american assistant -- american citizen. >> i think it accounts for why the focus has been on news international. i do not think it is a big

reason. my feeling is that rupert murdoch had been a bogeyman on the left. he was targeted during mrs. thatcher's reign. at the jews were made of him. -- effigies were made of them. members of the liberal left had to bite their tongues. in a way, their rage that they have been venting about murdoch over the past few weeks is partly been fuelled by a self discussed -- disgust that they allow themselves to be muzzled by their own sense of what was in their political interests. >> i think that is true, all

less new there was this dark cancer in our midst. i am not saying that is what he was, but there was something which we could not bitter hands- on and did not want to get our hands on. i am wondering if it is partly our fault that we are in the mess that we are in. >> i am very fortunate, whenever i am introduced, i am introduced as the former editor of "the daily mirror." it is a big club. i spent most of my career, more of my career, working for rupert murdoch. that tends to be overlooked. i worked on three continents for him. i edited papers and australia for him. i kind of scene but sides.

i have worked against him when i was editor of "the mirror." it is a very emoted to talk about. i can divorce rupert murdoch from news court -- news corp.. i actually rather like the man. i admire him. i dislike the hold he has on the business. if that is the cancer in which you speak, i would accord with that. >> he has brought people access to a world that they had no access to before. the upside is very great. what would happen if the 10 million people with dishes found that he had been denied a life of broadcasting? it is hard to imagine that there

would be peace on the streets. >> they thought they had loaded this silly soccer of an australian with a dying infant. of an australian with a dying infant. out of that came sky. it has pushed the bounds of television. we need to be fair about this. >> it is a mixed bag. >> perhaps you could challenge it by suggesting someone who has

purchased on the political class is that he has had. >> there is the rub. >> the number of occasions that direct access was had. >> are reported a story about what happened on -- are reports this story about what happens, she was back of the limo with various celebrities. they spotted a motorbike following them. they got a little nervous. she conveyed this nervousness

to rebekah brooks. within a minute, someone had called him back with his name and his telephone number. she called and told him that the limousine he was falling -- he was falling carried rupert murdoch -- the daughter of rupert murdoch. just to add to the list of papers that might not exist. i do not think the independent or the independent on sunday would exist. he made it much more possible to produce newspapers. i am not sure the guardian either. >> he has extended by 10 years

the working life of print journalists in this country. >> rupert murdoch as bogeyman, i do not think that has been the case for some years. i think for several years, there was a sense that, the man has poured lots of money into journalism. i would not quite -- i would not go quite as far as now you are going. i disagree. this is not about a liberal --

it is part of this great liberal left conspiracy. this is a story that nick davis was out there. i am born to bring down the most powerful man. -- i am going to bring down the most powerful man. the biggest selling newspaper in this country. to suggest somehow that the only reason that gordon brown was going to break -- it is madness. gordon brown told everybody what had happened to his son. i should have done something about it earlier. this is a conspiracy against a culture. to allow a culture war people were saying, -- it is perfectly

except the will to say, i'm going to listen to this. that is so far and away beyond this sense -- it is a culture that went horribly wrong. >> it seems a culture of immunity. they did not seem to feel as though they would be stopped by anyone. >> power perhaps ultimately. >> you can almost see how -- if you were there in that newsroom, who was going to stop you? >> that has been a major problem. the wall street journal has its own ethics and standards review. what we have lost in this country certainly -- what we

have lost is the grey haired ataturk and chief figure that could not put anything in the paper, but he could stop news going into the paper. we lost the moral sense. >> i worked under to editors. -- two editors. there were the bane of my life. at the time, i was an energetic young editor. they would say, no, you cannot do that. that is gone too far. i hated it. i hate the idea that i am proposing that we have to go back to something.

it is no coincidence that the last four or five editors from "news of the world" have all gone the pop show biz roots. they have been quite beyond. -- young. morgan was editor at 27 or 28. andy coulson, early 30's. no sort of ethical backgrounds. no sense of somebody above them saying, do not do that. do not go there. >> we have a controlling editor. >> we have a controlling editor.