jerome schneider with pimco and chuck gabriel with us as well. is nelson rockefeller president? chuck: the deficits will be close to $700 billion, gdp is back up above 3% and on a rocket a $1d 4%, and we have trillion deficit by 2022, but as it does not stop running, we will be there a lot quicker. tom: chuck gabriel's wisdom here. what does the short-term market do with 4% deficit to gdp and a vest are going the wrong way? jerome: we are preparing ourselves with higher issuance. we are starting to think about that. there are two elements -- one is the short-term element that the treasury wants to rebuild cash balances, which is a technical reduction on the debt ceiling. in the medium-term, you are thinking about how the reinvestment process would work when you have normalization, a reduction in balance sheet, which will be an additional issuance on the front end of the current. -- the curve. tom: how with the five-year ago? jerome: this is very critical because i think the u.s. market is priced with zero expectations and rate hikes going forward

by capital off of partners founder and president chuck gabriel. at did you call this plan, disorder, a deficit remind me again. >> deficit attention disorder. betty: what do you mean by that? chuck: it does not have any .evenue offsets or pay fors we had a proposal from the house ways and means committee chairman kevin brady and the speaker paul ryan earlier this year that did do the exact same thing, seek a toy percent top rate. it had a border adjustment tax which was rejected as well as repeal of corporate interested in stability. they brought back the 20% rate proposal and decided to forget the [inaudible] eddie: what chance do you give it being able to pass, is this health care reform all over again? check: markets have been through that and they are wisely reserved. i think they know that the republicans have a very narrow senate majority and the have to do with these difficult budget rules. betty: i think something happened with your microphone. just stay with us. we will be back with chuck it also we will talk about -- but also we will talk