>> well, speaker boehner passes the deal on the dance. >> it is hard to believe they cannot agree. >> and no, they are not willing to change their tunes. we begin this monday afternoon sadly in worse shape than we were when we left you on friday. apparently no closer toç a dea on the debt ceiling crisis, and now just eight days to default. and in fact, we could be further from a deal than ever before. the president maintains that both sides must share in the sacrifice, and here he is speaking earlier this afternoon. >> both parties have a responsibility to come together to solve the problem and make sure that the american people are not hurt. on this issue. >> moments ago, senate president harry reid laid out a new compromise from the democratic side. $2.7 trillion in spending cuts and a debt ceiling raised beyond the 2012 election.

at his side was colleague senator chuck schumer who attacked the republican position. >> at this point, there is no alternative other than default, and no basis for republicans rejecting this proposal other than that they want a default. >> but details from the plan of speaker boehner who will appear before the reporters in less than one hour are also emerging. they call it the boehner two-step. cut $1.2 trillion over ten years and provide a short-term $1 trillion increase in the government's borrowing limit. and a joint committee to cut another $1.6 to $1.8 trillion and no new taxes. it is a plan in line with the cut, cap, balance legislation passed by the house last week and a plan that was quickly defeated by the democrats in the senate. all parties had been close to a so-called grand bargain until the talks collapsed again friday night.

a collapse made personally dueling press conferences, one by the president and the other by the speaker. the speaker who we all now know bolted at theç altar and vanisd from the talks where we learned that $100 billion in new revenues over ten years and a tiny fraction of the pie was the deal-breaker. boehner's boys in their unwillingness to compromise looked like a bride on wedding day. today, on a twitter offensive, he called the compromise indefensible. that is maybe your role, mr. boehner and not the deal. at the white house is luke russert, and kristen well ckewe.

you reported the events in almost realtime when the speaker walked out on the talks. so how does the president move forward? speak out -- reach out to the speaker again? and count the third time lucky? >> well, they say it was the speaker who walked away from the bargain to get a grand deal accomplished, so they feel he should be coming back to the table to resume the dance, if you will, but white house officials are el thing me right now that the president feels that the ball is in congress' court and up to them to move the process forward at this point in time, and as you mentioned, speaker boehner is going to likely introduce that two-pronged plan to increase the debt ceiling, and the president has said squarely, he will not support anything that is a short-term deal. so, really, the two sides are very much apart and it does not look like, at least right now, they will come back to the table over the grand bargain. martin? >> luke, we understand that the gop will post the plan by

midnightç tomorrow, and aren'te talking about a house plan that won't pass the senate and a senate plan that won't pass the house. >> yes, we are, martin, but throw this in. this was from the boehner plan where they seemed resolute that they don't believe that harry reid's plan to cut across the board and agencies can pass the senate. they don't believe it will pass the cloture vote and that mitch mcconnell can hold the troops together over there, and then an interesting scenario will merge. john boehner's plan is to fasz house of representatives wednesday and you could see john boehner's plan to be the last one standing and the only one coming out of the house with reid's plan held nup in the senate. and then do they take boehner's plan and accept it or back to square one and then the president cave in and not veto this, because it is the only thing possible to avoid a

default? the question now is does harry reid get to cloture in the united states senate and the aides feel that he can't, and they say he has supported it in the past and in a certain set of circumstances they would, but with mitch mcconnell and john boehner joined at the hip for this, you can see that republicans offering support for that with john boehner's plan being the last one standing, and what will the president do? >> well, will he hold the stance that he has said adamantly that he would shorten a short-term veto deal from the president? >> well, we have not heard from him today, so it will be interesting when we hear from him or the white house, but as of right now, they have taken a back seat in all of this letting it play out on the hill, but what we can tell you is that the president has canceled several upcoming fundraisers so that he can deal with this debt ceiling issue. he is determined to get this resolved and again the treasury

ie timothy geithner pressed the point this does need to be resolved from the august 2nd deadline or it could be cat stro -- catastrophic for the u.s. economy. >> well, martin, there is nothing toxic, no revenue increase or touch any of the entitlements that democrats like. so on paper while the democrats don't like the process, and the fact that it does not touch the sacred cows nor the republican sacred cow, taxes, that is why they feel it has a future in the u.s. senate if the republicans hold strong there and vote down reid's plan. >> remarkable maneuvering. thank you, luke and kristen. for more analysis on this political showdown we turn to my colleague andrea mitchell who is the host of msnbc's "andrea mitchell reports." andrea -- >> hi, martin. >> all of us who work on the network, of all of us, you know

the congress better than anyone, and have you seen this kind of intransience or deadlock over a budget? >> well, they have felt that the other side have gotten us into $14 trillion in debt, and they don't believe the warnings that we have been reporting. i interviewed alice rivlin who is the former vice chair of the fed and comes from a democratic background and from the bill clinton white house and worked in partisan and bipartisan offices, and she says it is a self-inflicted wound. there is no reason for the sovereign debt of the united states to be at risk in this way. certainly the treasury secretary and the fed chair have been making these arguments, and you can argue that one comes from a political context being partç

the cabinet. they do not believe the credible warnings they have been getting and the other side of the fence is that everyone sees political advantage, democrats and republicans, and they are looking at the 2012 race and positioning now for how they want the president or the republican candidates to be positioned. >> andrea, luke was just saying that he thinks of these two proposals, he thinks that the last one standing could well be john boehner's. >> i think that is really smart. >> do you think that? >> yes, i do. i think that the way that boehner is positioning this, he could get something past the house that whereas harry reid might have difficulty within the senate. it remains to be seen how the head count goes on what reid is now proposing, but if reid can't get 60 votes, then he has a stalemate of the senate and we know how that works, and they could push something through the house, and then you would have the president left with the

dilemma of having to accept default or veto a house bill, something he has said he would veto. >> so in effect, what you are saying, andrea, john boehner would have put the president in a invidious position to which he ultimately will be blamed if there is a default? >> what you are seeing now is the positioning of exactly that over who is going to take the blame. and if the last bill that is passed at least one house is john boehner's then he could make the case that the president is the one standing in the way, and ooetser w ither way, you aro have both sides claiming that the opponents are to blame if this goes down. what the markets are saying today at least is that we think that they will work this out, but someone is going to blink. >> that is what the markets are saying. andrea, finally,ç a resolution before the default deadline of august 2nd? >> i don't know if it is before the deadline of august 2nd or if the deadline is in advance of

that if people are spooked, but i do believe there will be a resolution if they stretch it out, and there is a big treasury action scheduled for august 4th, and if that were not to be sold or if the interest rates on it would have to go appreciably higher that could trigger a sell-off and another problem as well, but whether it is august 2nd, 3rd, 4th, there is a resolution of this, because the al terntives are just really too dire to conceive. >> thank you, andrea mitchell, for joining us. and the man of evil, and did he really act alone? while energy developement comes with some risk, north america's natural gas producers are committed to safely and responsibly providing decades of cleaner burning energy for our country, drilling thousands of feet below fresh water sources within self contained well systems and using state of the art monitoring technologies,

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now, to norway where 32-year-old anders behring

breivik, the man who hasibilityf at least 76 people has made his first appearance in court. in a closed hearing, behring breivik said he wanted to save western europe from what he saw was a muslim takeover and he also claimed to have other people involved in the attack contradicting earlier statements. we join jay gray in oslo. there is an extraordinary turnout of people wanting to pay respects to the victims there. >> yes, martin. it has been unbelievable and across the country, but here in oslo, i can tell you that more than 150,000, they say, came to the downtown area. let's take a look around so i can show you what i'm exactly talking about. we are at a makeshift memorial site that started over the weekend. there was a is service at the main cathedral sunday and a 12 foot by 12 foot block of candles

and poems were there, and now it covers more than a city block and in fact, so many flowers here and so much here that police have asked people to stop bringing them and go to other memorial spots. these have been out into the street and taken over the street here and down into the corner and taken over that area, andçe have seen hundreds of people coming here to pay respects, crying, and pause for hours to pay respects. but as the evening grew over thousands gathered outside of the church. it has been an emotional day. >> thank you, jay gray. in his 15-page manifesto, behring breivik credited people for what is the cultural takeover of the islam. he copied from the manifesto of the unabomber ted kaczynski who

terrorized his victims for years. and if he can be influenced in oslo by extremist american thinking, is it a long time before we see similar terrorist attacks here in america? we are joined by evan of global partners. and evan, this man was clearly influenced by the american writings at least according to what he says, but how strong is this anti-multiculturalism i in this country? >> well, the multiculturalism, and the anti-multiculturalism that we see here is different from europe, but at the same time turn back to last summer and the debate taking place since then. we have seen protests here in new york outside of the park 51 complex saying that islam is coming to takeover america and this cannot be built, and you have seen them attacked in murphreesboro -- >> and peter king's hearings on

the influence of islam. >> and political rallies in arizona carrying assault rifles and it is not that much of a jump from that to this. this is the problem is that in a society where we tolerate people showing up to political rallies armed or tolerate speech where others say they should be killed or expelled solely because of their religious orç personal orientation, political orientation, that is worrying. and the problem is that it is not just impacting people here in the u.s., because there are others outside of the u.s. reading this. that is what is dangerous, and we have to be careful what we are saying here. you look at the republican presidential debates that are taking place recently and the muslims are being treated like they are some kind of evil virus. you only need to have a very small number of deluded people to see that, and run with it, and then you have something terrible happens like this. >> lord forbid. back to breivik for a moment, because it is believed he visited london. do we believe he may have been

liaisoning with some anti-multicultural cell in the uk? >> of course, the english defense league which is based in the uk and notorious for the position against the multiculturalism and frankly racist political positions. >> and in fact, the leader was arrested and found guilty of violent assault at a football game. >> well, they are neofascists and nothing better than that and now that breivik is saying that there are two other cells, is he saying this for effect? saying it for publicity? or saying it because there are in fact other individuals out there? and to be honest, it does not matter, because if we think of this logically, there are other people in europe who believe these things. >> indeed. >> and other people who are going to be moved to acts of violence. >> the norwegian government does not have much experience in dealing with this kind of individual. he was suggesting or implying he had collaborators and how much of a weakness is the security

system in norway? >> well, look, norway is a small country. it is very peaceful. this is a police force that owns one helicopter. they are not used to dealing with hostage situations or armed gunmen or terrorist attacks on a daily basis and they are dependent on allies like the united states toç provide them with intelligence and insight to see it coming. here was someone from inside of the norwegian society who went on a rampage and as it would be wonderful to say there was some way to stop him, but i don't know if there was, because the reality is even in the country with all of the resources dedicated to fighting terrorism, there are no promises that a lone wolf would get up to do this. don't forget that somebody got into an airplane and fueled it with gasoline and crashed into an irs building in texas, and no one saw that coming, so if someone is capable of that, they are capable of this, and it is a

warning sign that we should take as aself-reflection sign that somebody could do this and we have to make sure there is somebody who is not writing a 1,500-page manifesto. >> and we should be careful what we say in political rallies as well. eric kohlman, thank you. these two men created bath in a box which is a business called bath simple. they put the bathtub and the sink and even the toilet and tiniest of screws into one box. for more information go to "your business" on sunday mornings at 7:30. ♪

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now to the race for 2012, and what could be best described as a growing feud between michele bachmann and tim pawlenty. you may recall that tim pawlenty said that quote, michelle bachman had done nothing in congress, and now she is firing back saying that mr. pawlenty is much closer to president obama on everything from climate change to health care. fighting words indeed. for the latest bout of this political fisticuffs, we are joined by michelle who writes for the daily beast. >> hello, martin. >> pawlenty and bachmann are

similar in that they are both from minnesota and both ev evangelical christians and steeped in family values, so why are they spending so much time throwing barbs and attacking each other? >> well, pawlenty sees himself as not the establishment, but the moderate centrist in this field as opposed to michele bachmann who has always kind of been on the tea party fringe on this. in the latest round, i think that he came off pretty well, because if i were her, i would have fired back at the insults with a tim who? because at this point, he has no traction, and he needs to be throwing these punchps just to get a little bit of attention. >> because is this pawlenty realizing that he doesn't do po something, anything, his campaign is as arresting as that of jon huntsman and newt gingrich both of whom have ridden off into the sunset. >> definitely. pawlenty has had a problem with not being terribly charismatic and he the black hole of

charisma in some ways, and at this point he is falling in the polls, and he was not high up to begin with, so he needs to do something to get his name out there. and you know, he had a problem at the debate when he refused to stand by his comments about mitt romney and people were questioning whether he was tough enough for this. this is not a problem for bachmann, because nobody questions whether she is tough enough. >> absolutely. >> so this is another moment where he needs to either stand up and make a name for himself or he might as well hang it up and go home. >> speaking of michele bachmann, and this pray away the gay story and her husband, it doesn't seem to go away, does it? it gained more fuel after video surfaced of gay barbarians going to the clinic and making a scene. last week marcus bachmann said he is neither homophobic nor converting a gay orientation, but it appears that nobody believes the man. >> well, in part nobody believes

him, because people have gone undercover at his clinic and film snippets of him talk about how god has made man's eyes for women's form, and there is a story about what his clinic is peddling, but it is not going to go away, because michele bachmann had been an tie gay marriage proponent, and so that is a hot issue lately and i cannot imagine this is going 230 go away, and marcus bachmann is going to have to address this issue head-on in a broader sense. >> oh, michelle cottle, thank you as always for joining çus. coming up, john boehner and his republican colleagues spell out the new plan to end the nation's debt ceiling crisis. stay with us. announcer ] anan anthis...is the netwo. a living, breathing intelligence

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in 30 minutes from now house speaker john boehner will hold a press conference to discuss the latest plan to avoid default on the debt. if politicians fail to achieve a compromise by august 2nd, it is a historic low point for the american economy indeed. if lawmakers can not reach a deal before the deadline, the effects according to secretary treasury said the effects could be catastrophic, but this week, he sounded confident. >> the leaders have said ç unequivocally, democrat and republican, that we will meet the obligations and not default and what we trying to do is to achieve not only that, but put in place a framework to allow congress to make the tough decisions that we need to make to get the fiscal house in order. >> meanwhile, on nbc "meet the press" white house chief of

staff bill daley said that they have already caused quote damage to the united states. >> if you look at the rating agencies, what they have said, and what they have said the reason the rating agencies have questioned our economy is that they don't have faith that the political system of ourselves can deal in a serious way with the deficit. >> with that warning, pressure is mounting as is the anxiety over the markets. we are joined by liz ann saunders, chief investment strategist for charles schwab. >> hello, martin. >> can you clear up one fundamental point, given that some in congress are dismissing the august 2nd dismiss and saying it is not a hard deadline, how serious will it prove for america's global economic standing if a deal is not done by that date? >> well, all right. there is some wiggle room apparently, because of the revenue stream is a little bit bigger than it was a couple of weeks ago so now i am hearing dates into the august 10th or 15th, but that is a side show.

it is a big deal. i think that even if a deal is reached, and i believe there will be one and listening to geithner and members of both sides of the aisle saying that we will not default does not mean that the rating agencies will not downgrade u.s. debt which calls in whole other set of questions from the breadth of the full faith and credit and the collateral issue and the mandate of a lot of of the pension funds and insurance funds to only own triple aç securities is more of the shorter term concern. >> but the longer it goes on, one imagines the longer it affects the markets, and today, all of the markets are down? >> well, it is down, but it is a fairly benign reaction given some of the extreme assumptions of when the asian markets were opening that it is a real disaster. the markets are telling you that they have faith that something is going to get done here and you are seeing it on the equities side and the fixed income side in terms of the ten-year treasury yield, and

yeah, it is down, but nothing akin to the rancor yesterday. >> and i don't know if you have heard, but the newly appointed imff chairman christine legarde is wanting a comprehensive debt issue, and she is dealing with a country like greece which is in unstoppable debt spiral and what do you as an investor and people in the congress in terms of the hurry up, hurry up, hurry up, come to in a agreement, what would you say to them? >> hurry up, and come to an agreement. the uncertainty is reflected in the market today, but even throughout some of the economic numbers when youess in jobs and consumer reports and the survey data of business investors and businesses a lot of them point to this why they are holding back on investment and activity and it is a pervasive issue, so that the hurry up part makes a lot of of sense, because we are seeing the tentacles of this hit

beyond day-to-day market reaction. >> and we have heard now that there are two potential approaches to resolving this issue, and indeed the gop will come out in 25 minutes with a press conference. >> yes. >> and what would wall street's reaction be if the president had to sign a deal which meantç th we had to go through all of this negotiation again in six months? >> well, that is the thing. you saw the market react negatively when harry reid had his press conference. basically throwing in the towel on the revenue side and leaves one key part of the debate to be if this is short-term or long-term fix here. the markets would like to see something long-term, because the last thing that the markets want is to face this several months again from now or next year and to try to get inside of the mind of the market which is impossible to do, but i would say long-term comprehensive deal is better than a short-term fix. >> thank you, liz ann.

for more on the stalemate, we are joined by justin phillips of the tea party. how are you? >> extremely well, martin. >> do you believe that the expert opinion of the economists around the world who say that if the debt limit is not raised and soon, it will be catastrophic for the american economy? >> the debt ceiling, if it is -- >> do you believe their view, sir? >> the it may or may not be raised, but i will tell you that what i do believe is as you have pointed out a moment ago greece's economy is in a death spiral and if we keep spending and borrowing money, and guess what, america's economy is going to be in a death spiral and i would like to face it now -- >> mr. phillips, i ask you, do you believe what mr. bernanke, around mr. geithner and christine legarde in charge of the imf say it would be catastrophic, and do you believe their assessment of what will happen? >> no, not really.

>> you don't. >> every time this comes up, we are told that it is the end of the world as we know it. well, guess what, if we go the way of greece, it is the end of the world as we know it. how about a better idea.ç let's cut some spending. you know, the government accounting office says there are hundreds of billions of dollars in waste and fraud in government spending right now. let's start by cutting it out. if we start cutting it out, we don't have to por ro-- don't ha to borrow. >> do you want us to default? >> no, i prefer not. what i want is to cut spending, but we have to remember this, when and we are talking about default, when the government cannot borrow anymore money, we can prioritize our debts and pay our debt service, and if we pay the debt service, there is no default. >> this nation has never defaulted on its dets. >> yes, the constitution says that the full faith and credit of the united states, and what i am saying is that we can prioritize our debts even if we don't have a debt ceiling increase and pay the service on the debt. it is like running up to the

credit limit on the mastercard and paying the monthly amount, and maybe at the credit limit, but not at default. >> it is your view that almost like an alcoholic, you feel that the country almost needs to default in order to be brought to its knees. is that your view? >> our country needs a serious spending intervention. our congressmen and senators have a spending addiction, and they need to be detoxed from it. they need an education. we are living beyond our means and spending too much money. >> and so what, the actual default be the toxification that you feel is necessary? >> i prefer the congressmen and senators act like adults and quit spending money. money that we don't have. cut the spending -- >> and sir, we are talking about covering things that have already been earmarked as expenditure and not the future. we are talking about a default on the basis of debts.

>> yes. you are talking two things here. defaulti ining s means that yout pay the amount that is owedç a not the entire amount. there is sufficient amount coming in august to pay the service on the debt. other things that we can't pay like maybe the hundreds of billions of government waste, but we can pay the service on the debt. we don't have to default unless mr. obama and mr. geithner say, hey, i won't pay that. >> and mr. phillips, the vince cable, the business government cable says that the biggest threat comes from the right-wing nutters in the american congress. is he right? [ laughter ] >> you know, i haven't heard that one. i have to laugh when i hear a left-wing -- >> he is right, isn't he? >> lunatic in the british government say that. hey, i will put the american economy even as bad as it is now up against the british economy and the american way of life up against the british way of the

life any day of the week. >> judson phillips, and just for your information, vince cable is actually a centrist and a member of the liberal democrats, but thank you very much for joining us. we will be right back. i love that my daughter's part fish.

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hi 'm brian sullivan with your cnbc market wrap and here is a look at how the stocks are doing today. they are not doing well. the dow is down 83 points, and the s&p down 6.46 and nasdaq down 12.

and they are doing a deal to see whether there can be a debt ceiling deal. and meantime, the makers of the blackberry, rim, is going to cut down 10% of its jobs. and the price of gasoline climbing nine cents over the last two weeks putting a gallon of regular gas at nationwide surprise of $3.70. that is it from cnbc, first in business worldwide. martin, back to you. >> thanks, brian. to religion and politics now. new indications of the incredible influence a candidate's faith may have in the election process. a new study just released today shows some 56% of voters say, quote, it is very important for a candidate to have strong religious beliefs. that is regardless of whether they share the same views in faith. for more on this, we are joined by "huffington post" contributor frank schaffer. good afternoon, frank. >> hey, martin. >> how are you? >> doing well. how about you? >> and now, in secular europe,

people say that politics plays no part in, sorry, religion plays no part in politics. how corrupting is the influence of religion on the political process in this country? >> well, if you think that politics should be about facts, then religion can be very corrupting and is, because you have people who come to the table for instance the 86 members of congress that the tea party sent there with faith-based politics, rather than fact-based politics. so for instance if the ideological commitment to the free market and to ann rand and the bible and this weird mix that is the tee party tells them that it is better to bring down the u.s. economy than to help the first african-american president succeed in an effort to delegitimize him, that is what they do, because it is a faith-based politics or michele bachmann saying that gay people can be healed of the gay by praying it away, it has nothing

to do with what biology or psychology tells us. and so, i think that a faith-based politics is an immensely destructive thing. what do you think that iran, saudi arabia or the settlers on the west bank of iz radiosrael refuse to mo ave and risking peace, and it is the same thing with these tea party candidates. >> you are talking about front-runner michele bachmann who is coming under fire for her religious practices, and this is something that could ultimately sway the race for the white house? >> well, it did in the past. john mccain wrote a forward to a book of mine a few years ago before he went to the hard right to try to nullify the religious right. and the only reason he brought sarah palin into the race is not because he liked the religious right, but he knew the facts. you can't win the primary without the backing of the 25% of americans who believe in a literal six-day creation, and

choose that people choose to be gay, and everybody will go to hell for those who asked jesus to accept them in his kingdom. this is a war of religion in the country and not different from afghanistan, and a few less people are getting shot. but you know, we have talked on the last show about this book of mine "sex, god and mom," and people who read that book understand that religion impacts politics and you brought up michele bachmann and i read today where she was saying that she got into politics by reading my late father francisç shea's books on calling for the people to overthrow the government and unless it sent roe v. wade back to the courts for decision to take choice away from women. this element is prevalent in the united states right now, and we can't kid ourselves, because it is extremism under the form of christianity. >> thank you, frank.

and now, like the fall of communism, some are beginning to suggest that multiculturalism has had the day. in the last few months a number of world leaders from prime minister david cameron in the uk to chancellor angel la ameria mm germany have spoken of the fall of this. and just as europe have developed a single currency and tried to be a unified union of cooperative states, many leaders are doubting whether such an approach is feasible and they are pulling back. anders breivik railed against cultural marxism and develope e

a psychopathic hatred for anything he considered anti-nordic, but this country, too, has had a share of its psychopaths from ted kaczynski to timothy mcveigh, but america is exceptional in allowing differing groups to live in relative harmony. why is that? why is it that when political philosophies are inadequate or ina capable of achieving unity, america somehow holds together? i know it is becoming somewhat of a joke in some quarters that i as someone born in europe should have such reverence for the founding documents of this country, but once again, it is the words of thomas jefferson that i think that provide an insight into why in a nation of so many ethnic differences, america is one. in his majestic and immortal words he wrote, we hold these truths to be self-evident, that all men are created equal, that

they are endowed by their creator with certain unalienable rights. in one sense, this is much more than a sentiment. it is an overtly theological assertion, that our creator has endowed ut all with an equal right to life, liberty and a pursuit of happiness and maybe that's the point. when political philosophy seems to break down, maybe we need reference to a higher power to settle the argument and help us live at peace. we'll have some breaking news in the debt fight. house speaker john boehner is about to be announce the new gop debt plan. we'll bring you that live in a moment. stay with us. 't walk any faster. [ female announcer ] oscar mayer deli fresh turkey comes in a clear pack... [ cellphone beeps ] [ jeff ] ooh. thanks hun! [ female announcer ] ...so the freshness you see is what you taste. ♪ it doesn't get better than this ♪ introducing venus proskin with moisture rich shave gel bars

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speaker of the house jahous boehner, his new plan to end the crisis. nbc's luke russert is live at

the capitol. this could be quite the moment for speaker boehner. it you're right and we were speaking at the beginning of our brad cast, he could actually win the day in this chess game? >> reporter: certainly it's a possibility, martin. the reason being is that for all intents and purposes from conversations i've had with the gop aides, any plan harry reid puts forward is going to have an awfully tough time in the senate, a tough time regarding a cloture vote there and if it were to come out of the senate, not necessarily pass the house of representatives. gop aides say this plan, the boehner plan, is the one thing that can get out of the house of representative, does not have anything that's politically toxic. meaning things that are massive cuts to entitlements or anything with a tax increase. democrats say were involved very much in the writing of this plan over the weekend. that, in fact, it was brought to the white house last night by harry reid and flat out rejected because it did not extend the debt limit through 2012. if that's true, fingerprints of both sides in this boehner deal. both sides in this boehner deal. it remains to be seen. is

could see this deal, most likely pass the house of representatives wednesday be the one thing standing for president obama to sign in order to avoid a default. now, there is certainly all types of possibilities that could happen. we've heard there still are discussions between the senate and the house. especially the leaders, between reid and boehner. perhaps harry reid, this could pass the house, go to the senate and make an amendment. for any debt deal, one that will have the votes in both the house of representatives and possibly the u.s. senate, martin. >> it would be remarkable. luke, harry reid was saying earlier that this proposal doesn't contain anything that's been previously discussed, and yet when the democrats came forward with this, with harry reid's proposal, he said the content of the proposal was very much as previously worked over?

>> reporter: correct. harry reid's cuts, something republicans agreed to. why will they not take it? the reasoning being, they don't believe the goals do enough to identify the causes of debt. they want to have with the boehner plan this bipartisan panel, 12-person panel, before another extension allowed would have to dent tie things that could be cut from both sides. this really, martin, is catering to the house of representatives in the framework of what that cut, cap and balance bill was. a provision on the balanced budget amendment by the end of the year. also, this framework suggested the debt limit extension is temporary. that there would be a real emphasis on trying to figure out how to fight back the debt. this really appeals to the tea party wing of the party, and remember, martin, that mitch mcconnell, the senate republican leader, would love nothing more than to see this issue voted on again in the united states senator.

>> çindeed. thanks indeed, luke. you're not done with us yet, because just moments away, speaker john boehner will be here giving us a press conference. dylan ratigan dr is back from a brief break and he'll pick up for me now. >> indeed, martin. thank you so much. as you're well aware, if not, breaking news. any minute now speaker of the house john boehner will lay out the details of his latest two-part debt proposal. luke russert remain on standby at the capitol. nbc kristen welker is outside the white house awaiting reaction there and our mont mega panel on duty early offering analysis and insight to the debt ceiling two step, which we're doing instead of worries about jobs orring in policy or anything like that, because you know, while we worry about having people work or not wasting energy, blowing money, we can just call each other names in a political, two-party political system that's kind of stupid? anyway, tim carney is here. i'm excited about that.