>> greta: think cap and balance is dead? at least right now it is in the united states sna. many republican politicians are not giving up. what is their plan? you tell us, jason chasis joins us, have you given up on the cut, cap and balance? >> no. absolutely not. i think it's a solution. i don't want a deal. i want a solution to the problem and i think cut, cap

and balance does that. a balanced budget isn't varied. >> greta: what are you willing to give on? >> a debt ceiling increase. i never planned to do that. that is a huge sacrifice for someone like myself. we're giving the president what he wants. now, remember, february, 2010, the presz -- president got a $1.9 trillion debt ceiling increase. what happens ch what happened? here we are back doing the same thing again. i don't want to do that. sacrifice is a $2.4 trillion debt ceiling increase. >> greta: senator reid's program doesn't have a balanced budget amendment. senator reid has a sort of a hybrid that will be a vote on it. right? >> yes. >> greta: i want congress to be compelled to vote for it. i think if the president got behind it, it would actually pass. i encourage speaker boehner, i think it's this close to

passing. >> greta: have you ever had conversation was the speaker about this? when is the last time? >> last week,' agreed to bring this up. there was a conference in small groups. i think he's bending over backyards -- backwards to do everything. >> greta: so will you vote for the deal? >> i couldn't. >> greta: you said he bent over backwards. >> i do think he's trying but i want to solve the problem. i worry some of the aspects of what he's proposing here in this effort don't solve the long-term problem. i don't support a commission. we have a bipartisan commission and should be doing our job. it doesn't work. >> greta: that is the conversation i had with concongressman andrews. i think the problem is that american people see a lot of failed efforts and ideas. a lot of people who are now holding feet to fire are doing it because there hasn't been a strong example of handling

this. >> i want senator reid to actually have a debate and i want the president, and the press to go to the president and ask why are you opposed to a balanced budget ae. you say you want to get the balance but never issued anything. i don't think he wants it. he proposed a budget. the budget never balances. it's doubled and tripled debt and went to the united states senate and lost 97-0. there wasn't one democrat that voted for that. we've never seen something in writing from the president. >> greta: why? >> for me, it's a total lack of leadership. if he was a ceo of the company and we're driving into the ground like this and no plan, i'd fire him. >> greta: and did he give an explanation? >> this is a question that has not been answered. i find it to be a balanced plan. it's going t take seven to 10 years to go through. all i'm asking for, send to it states for their approveal.

that is all i'm asking for. we'll give you, mr. president, what you want more than anything, a $2.4 trillion debt ceiling increase and deal within 2013. >> greta: what about entitlement problem? >> it's a problem. i want tax reform. and you're not going to do that in three, four, six days. it's just not going to happen in a short amount of time. >> greta: if he does do taxes first for the full commission they said 3300 earmarks and came up with a plan how to deal with that. i just got to ignore it. >> okay. we called it our house republican budget we put forward we broadened base, and get rid of the loopholes. that is common ground. >> greta: and paul ryan of wisconsin republican voted against it and was on the commission. >> yeah that. is why we hear speaker boehner with all due respect wanting to put in another commission which was the request of senator reid, we've had 17

commissions and it doesn't work. why do we think 18th time we'd come up with that. >> greta: what is the instruction you're getting in terms of anything? tell me what kind of discussions... >> we're going to be here until this gets solved. >> greta: what is what leadership says? >> oh, yes. the deadline is the best possible thing that can happen. >> greta: i think you think you're going to get cut, cap and balance under the deadline. >> i hope so. >> greta: but do you think you're going to get that? >> i don't know anyone spern going to get everything they want. >> greta: i mean like, you're unwilling to give on that. you're not going to get that, right? >> i'm open to possibilities but want a solution to, me, balanced budget amendment is the single best thing to do. >> greta: is there a plan b? >> i haven't heard one. >> greta: do you have one? >> no. we passed it in the house, the biggest threshold there is.

234 votes including five democrats in a bipartisan way passed this that. is why it's so optimistic. we have a solution. cut, cap and balance. >> greta: you're cheerful about it. but the problem is that it didn't get a vote in the senate. >> american people ought to be bombarding senators saying how come you won't talk about this? they cabled it? come on. >> greta: how are you be optimistic? >> cabled it. there is no other solution. it's sunshine every day. >> greta: you're not getting this. you didn't get a vote in the senate. and you haven't got the president on board and you're optimistic? >> i'm not ready to throw in the towel skb go home this, is the greatest country on the plan yismt i want the president to tell american people why he's opposed to a balance budget amendment. he says it's over and we've solved it. he's the only one saying this. i told you.

we ought to fire him! >> greta: nice to see you, congressman. >> thank autos coming up, even default can be harmful to kme. how are the markets responding now? peter barns is here and member of the gang of six joins us and says we need to do big thicks to solve this crisis. is speaker boehner's proposal big enough for him? what does he think of senator rere

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default is bad. many describe it as catastrophic. this can scare investors and businesses around the world and we're all connected around the world. and the asian markets are open now and how are those markets react something peter barns joins us. >> asian markets are up now. >> greta: why? >> because did he the do not believe we're going to default or have a downgrade. u.s. stock markets don't, either z bond markets because if they did, if they thought there was going to be a default or a downgrade markets would be so much lower where they are now. dow down 100 points today. >> greta: okay. let's say august 3 they wake up and there is a rude awakening and turns out oh, oh my. they thought goitsing to happen, it does happen. then what happens? >> markets have been wrong, so have television commentators.

>> greta: what happens then? >> well, i don't know if we want to think about that. it could be ugly. remember we have tarp. it didn't pass first time around, the dow dropped 800 points and congress came back and backed it. >> greta: so a couple days of -- . >> i'm not saying it's not going to be a bumpy ride. we have all of the politics and but none of -- nobody on either side of the aisle is saying we're going to have a default and that we're not going to not agree to pay our bills. >> greta: i can't imagine us defaulting. the united states defaulting? sounds unheard of. and newspapers from around the world online. i see what they're saying about us. and other people discussing it. we can't do our own finances, it's rather humiliating. >> greta: don't start on the s

and p. >> i don't want to go back to that. >> greta: don't start me on that. i can't imagine any of that. seems impossible. when i listen to members of congress and look at the different plans and see the vast difference and along the lines of politics, and they said i don't know where they compromise, then now they're in a position they've done their deals and now they've got to save face. >> i see a compromise taking shape. i mean we're -- speaker boehner troin dused a bill cutting deficit by $3 trillion. leader reid, his was 2.7. they both have a commission. and what we're -- here is what we're going to have a down payment then we're going to have a part two of this. and the argument now is over what is the down payment on the down payment? and then, we're going to have a part two. then an election on this thing. >> sean: the house, and the

senate. senate majority leader and speaker cutting a deal between themselves. and the president right out of it? >> is why the president got into the game tonight. >> greta: that was a show? >> the proposals now, leader reid's proposal is not going to pass. if it passes senate it won't pass in the house. because speaker boehner said that. speaker boehner's proposal is not going to pass in the senate. the president was looking over the who arely n -- horizon to thursday or friday. and all of these people are going to be back at the table by weekend. >> greta: the thing is that i always have issue with the president in the proposal. the democrats talk about this speech. but they have the cvo saying we don't score seats. and they don't. >> greta: i understand that. i'm saying the president has not looked like he was in charge and sort of, bringing

the sides together and being a leader. >> either side could go ate lone and look what happened to it, all right? i'm not defending this, just explaining it. this is what they say. they decided to do health care reform on their own them tried to drag their party along and did it with all democratic votes. look what happened. they lost seats in the house, now, the presidency, there is so much political capital. it's smart politics. he doesn't want to jump in without holding hands. >> greta: it's hard to believe this is an option. >> which is why i think we've heard him tonight. because he -- you're right. after the talks broke down on friday, speaker boehner said he's going to work with the leaders of the senate so the president has let that process whittle on. we've seen proposals announced today and so the president wants to gelt back into the

game. he's the president of the united states. i'm not defending his leadership style. but he does have a vote here. and no deal is going get done without his approveal. >> greta: peter, thank you. >> nice to see you. >> and no, thank you. >> greta: coming up... what does republican senator cobrn member of the gang of six think about the proposal? and ever heard a passage thank the lord for his smoking hot wife? there is a first time for everything. this is just the beginning. you h@@

>> greta: we spoke today with oklahoma senator coburn a republican member of the gang of six. senator, nice to see you, sir. >> good to see you. >> greta: we have three plans, gang of six, speaker boehner and now, senate majority

leader harry reid. your thoughts on where we're going? >> well, we right now we have dualing bills from the majority leader in the senate and speaker of the house. i don't know where it's going. depends on what the votes are. >> greta: do you like the senate majority leader's bill? >> not particularly. most of it comes in false savings we don't get in terms of more savings, though maybe congressman ryan claims some. none go far enough, greta. i put it out. we need $9 trillion. you just heard an economist tell us we need eight and 10. what we need is real cuts. real honesty with american people how big our problems are. and do the things that will get us there. we hougt to, if we can get a small amount now we ought to get a small amount and work to get more and more. but we, minimum we need to settle markets is $4 trillion.

>> greta: you said it doesn't define us, you're speaking of speaker boehner's proposal? >> it's a start. again, we're going get more cuts over a longer period of time to give increased boroughing. his is in two stages. but we still need to get more. and what we need to do is, what we need to do is one of the things on the plan is we do need a balanced budget amendment. we've proven incapable of addictive elixer of spending money we don't have. >> and i don't like are the phony cuts. we say in the future we're not going to spend this money, so that is somehow a cut. i think american people are going to understand the real cuts now. >> what we need to do is cut about $150 billion next year,

another $150 billion next year. so then we have to fix medicare. this is an international financial community. it's not going loan money for medicare. we can't borough do that. we have baby boomers coming into it. we have this inflation going on. we don't have anything that says how will you use health care in this country? the president's plan is to ration that and price control it for, we'll control the price but will have poorer health care system. we need an incremental process. and important thing is that we need to be honest with the american people. we will not get out of the problem without severe pain if we don't get rid of $8 trillion over the next 10 years. >> you've commissioned a reporting. it's sitting on my desk about 1300 pages which is a blueprint of waste, overpayment.

a real quick way for us to trim some off. what has become of the report? >> it's amazing. we have had one piece of lenl slaigs on the floor we've tried to cut $5 billion. we passed it but it didn't go on to the bill that. is just $5 billion. there are $100 billion to save here. >> greta: i would think those would be popular. government waste would be popular? government overpayment would be popular no matter what party you're in. >> they have advocates for it. you get down to details people don't want to make a tough vote because they'll lose someone's support. we ought to not care and ought to do what is best for the country. that is what is not happening. people are protecting their political position rather than do what is in the best interest of the country. >> greta: you're saying they're selfish? >> very no doubt most politicians are self centered, otherwise they won't be here. it's about them.

>> is this inevidentable? or is there a way to get people to sort of face the hard issues to talk and also, republicans as well? i mean how do we move politicians to that other position? >> balanced budget amendment. politicians in state houses are self yirn, too but have one fence they're inside of. they can't get out of the fence. the fence is here is the balanced budget requirement. all states but one have that when it comes down to final spending per year they don't go beyond it. they're locked and cannot do it. people will not let them. yet, the people in this country aren't given an opportunity to vote for that in the senate. they didn't have the opportunity. human nature is human nature. it's not going to change. have you to fix rules so human nature can't defeat our country. >> what is behind the scenes here? taking a democratic senator to talk to you in terms of the process?

>> you mean what is it like? >> what are they say something embarrassed it's been happening this way? proud of the way it's happening? >> we should be embarrassed this problem wasn't solved three months ago. i mean this is isn't something nobody knew was coming we all knew it's coming. people don't want to move off a position until they're forced tox they want to protect their political interests. that is why you won't know what people gorg do until they have to do it. then, you'll see. so anyone can guess what is going to happen. i think boehner has got a better proposal than the leader. the fact is that we need someone to stand up and say time out. you're talking about small things. we need to do big things and needed to have done big things. the fact the president won't agree with bigger things, maybe some blame is on us as republicans for not being flexible enough. but the fact is that the country needs to do these things. since we're not going to get a

big thing done, the thing to do is do a small thing and try to get the country behind doing the big thing. >> the gang of six. do you have any agreement that was something that republicans could live with and do you think democrat woz have lived witness as well? >> i think some. my distaste is that it's better than nothing. it's far better than anything we've got there now. it's -- it in fact recognizes the we have to reform the tax code. there are some revenue increases in it. but the biggest problem why we're having trouble is because we zront a big friendly climate in this country that would stimulate all new jobs, last owe years have come from new business. new businesses have created and we're stifling that in terms of what we've done to credit market and regulations that are coming out of the administration. not just this one, but every

administration. more they do, the less freedom they have to create enterprise in this country to grow it. >> greta: i don't know anyone that understands the tax code. i take it some politician has a constituent that likes a particular deduction. >> there are earmarks on the tax code. >> 3300. >> there are 3300 earmarks in the tax code. some are legitimate policy this, is a very gracious country when it comes to helping other people with private money that. is great. we can do home mortgages but shouldn't do second home mortgages and give a deduction on that. everyone of those earmarks has a constituency. it comes back to the problem. what is the problem? politicians don't want to confront constituency for the best interest of the country. >> straight head, are you ready for a blessing? yes. a blessing that will have you in stitches? make sure to stay tuned for

this nascar. and there are news about the minors in chile stuck underground. and advice from an unexpected guy who may have just experienced what they both need. he's not in government. stick around for our best of

>> greta: you've seen our top stories but here is the best of the rest. not many prayers include a thank you for a smoking hot wife. at a nascar race on saturday in nashville, the pastor joe nelms gave a funny prerace blessing. >> heavenly father we thu tu for your blessings. we want to thank you tonight for these mighty machines you brought before us. thank you for the dodges and toyotas and fords and most of

all we thank you forgiving us power we see before us tonight. thank you for technology and thank you for sonoko racing fields and good year tires and great performance is power to the track. lord i want to thank you for my smoking hot wife tonight, lisa. my two children. lord i pray you bless drivers tonight. may they put on a performance worthy of inspiration tonight. in jesus name, amen! >> all right. well, we've got those fans will never forget that race. remember those miners in chile? stuck underground 69 days? now they're coming to a big screen near you. the producer behind "black swan" is teeming up with the

screen writer, one miner says we consider this to be a great step of a realization of a film based on our experience in the mine. much of our story has never been told. production set to begin in 2012. and white house and congress got trash talking from an unexpected choice, bob craft had this to say about the nfl lockout and how it worked out. >> i hope we gave a lesson to the people in washington. the debt crisis is a lot easier to fix than this deal was. thank you. >> greta: so maybe craft could join the gang of six and bring us to an agreement? and there you have it. the best of the rest. and coming up, your last call, one more quick round before turning down the lights. did you hear what the president did that has the chinese terrified? stick around. to see the latest video clips from on the record when you're

on the go just go to fox news.com and click on on the record.

>> greta: sloek almost here, flash studio lights, it's time for last call. president obama's overseas activities are making some people worried. at least that is what jay leno says. >> a big joke in london has fined the president for not paying a $16 traffic fee.

how scare zd that make the chinese? huh? we can't pay england $16? how are we going to pay them $14 trillion? this is not looking good. the president got emotional and mad tonight. he could not work out a deal with republicans walked out. he couldn't work it out, in less than two weeks u.s. government defaults and the federal reserve is working out a plan to determine who gets paid first. i think we agree, i don't care what gets paid first, just so congress gets paid last, okay? >> greta: that is your last call. thank you for being with us tonight. make sure you follow us on greta wire.com. we're going to put up an open thread. you can say whatever you want about tonight's show and tomorrow night we have brand new graphics and new music. i haven't seen it all. if it's bad sh don't blame me. everybody tells me new music and