it wouldn't be able to pay the so security fund it so those security fund couldn't be passing out the money the real reason that social security is on the table and this is the really important issue the real reason why social security is on the table is because of lobbying from wall street bankers two point seven trillion dollars two billion seven hundred. it's like two point seven i came to do the math it's a million times and millions you know it's really you know is a trillion dollars a billion a billion is a thousand million two point seven trillion dollars the wall street bankers are looking at that money going oh we have this money and we could be churning this money and we can just skim a little off the top and so they're trying to do a pinochet did in chile like forty years ago or thereabouts and privatized social security and the banks were make out like bandits and so they're leaning on the republicans and they're living on the democrats and there are some democrats who have even you know gone in that direction i th

health care that would be fine going forward so we can we have to rationalize these fiscal programs so security health care a check system and get to something that's efficient and their workforce or resign i will let me make this possible gap so there is a way to do this without enormous pain which is that politicians are just and they're not. you know discussing that they're making points against each other they're saying you know game of who is right as opposed to let's let's focus on our kids really concerned here isn't as for their children it's not we whether it's politician that politicians are elected or elected next year. so they don't what point is that actually be a bad issue that's unavoidable like what you're talking about because you mentioned you know it's that way they got right that's going to have to print money and print money to avoid if that's what the government's been doing i mean the paddle reserve has shown its willingness to continue to put gas into the economy entail do you more round of quantitative easing i mean how long can that be a lot because right now it's goin

not really working long term enough that's the basic problem you know the unfunded liabilities of so security and medicare and medicaid are going to go up by more than an choo-choo in this year the probably go up by four trillion so in just one year they're going to go up by or trillion is my sense so here you are trying to reduce expenditures by churchillian over ten years when the unfunded liabilities are going up by four trillion and when you have yet you tell me you were looking at the wrong numbers were looking at the wrong numbers but yet these are the numbers that politicians seem to be looking at and you're calling for a more long term solution they need a lot more cuts what we've seen in the last few weeks is a lot of debate holding up the debt ceiling over what is going to amount to nine hundred billion dollars over ten years straight away so if that's the only compromise that lawmakers can get to is what your calling for ever going to actually happen as a reality is that even possible. well it's going to have to happen because if we don't fix things fundamentally the government's g

dollars in income if we simply said you know gee warren buffett is going to pay the same amount of so security tax as you and me suddenly social security is solvent forever. tom there's eighty million baby boomers about to become social security eligible and i'm on the vacuum that that will come i don't expect think it's right it would total to national security that's why well that's why reagan double tax the baby boomers are the only generation in history that not only paid for their parents' retirement but also are paying for their own that's why there's a two point seven trillion dollars surplus in the trust fund that's migrating with . its axis and eighty three. term everybody agrees that our entitle me is the biggest part of our budget problem no it's not here is that nobody agrees to absolutely there the budget problem on her social security come on medicare and medicare is in trouble because the republicans inserted medicare part d. which says that while the veterans administration can buy buy penicillin for a penny a pill when one medicare buys that they've got to pay full retail at t

raising so security retirement age will not relieve our deficit. then a website and campaign are put out. it is highlighting members voting records and statements on key issues. they promised they will update it as we go along. the co-chair on the democratic side, write a piece in today's wall street journal. here is what they write. we helped to usher in an era of unrivaled prosperity for american families. on that last statement, the paper said president obama is weighing whether or not to encourage the speaker's committee to look at including some sort of stimulus package to create jobs. guest: we have had four or five stimulus packages already, and despite the them, it does not seem to work. we get the idea of what government can do to create jobs strong. it is operating under an old approach that says that government needs to put money into the economy to stimulate demand. what it does not realize is that in order to put enough money into the economy, the government has to take money out of the coming weather by borrowing it for taxing it. we

if you look at the projections over time, so security not only those 26% gdp by 2035, it stays at a 6%, while health-care entitlements continue to grow. it is more so on cost pressures for health care costs. along with this entitlement pressure, we cannot afford to fix the social security shortfall. the 75-year shortfall amounts to about eight tenths of a percent of gdp. eight tenths of a percent of gdp. that is just about equal to the revenue that you would achieve from the exploration at the high and bush tax cut. when people argue that we cannot support social security, but we can afford those high in the tax cuts, i think that is a hypocritical and destructive argument. how is it that every advanced economy can afford this, but we cannot? what is so different about us? if you look at the countries of europe, their democratic pressures are more challenging than ours. yet, we are an international slacker. the average for the replacement of the average median income is about 40%. it is social security going broke? i think this has been a terrible mess information campaign, some of the

second thing to remember is so security is powerful government policy. uch we save and work. we should think about the economic incentives be representing people with regarding social security reform. it troubles me when we forget that this is such an important part of our economy. most people who look at the system have the conclusion that the minimum benefit is to love. when doing reforms in the face of financial difficulties, step one is to make them worse. i think there is a universal agreement that this must be addressed. the key problems are problems among uncertainty. we're not here to talk politics. the fact that we do not fix so security and we have workers unsure about the nature of the deal they will have is a disservice to everyone. that is bad economics and a bad policy. we want it resolved as quickly as possible. they wanted to put it on solid footing. you have to decide where you're going to be. how much are you going to do on the tax side and the benefit side. in the end, you have to make a decision about where you come down on that. it is

the damage being done no matter what happens now everybody really thinks the united states isn't so secure it isn't so safe even if the craziness subsides it seems to have got real close and who knows whether the next month next year this won't blow up again since the underlying causes economic problems are getting worse in this country for point five trillion dollars of america's borrowing is owed by foreign countries experts say washington's mismanagement may cause investors to abandon the devalued dollar and end their partnership with america it's like being married to someone to serve a year for so many years they weren't sure you well know what'll i do how much can i put up with this relationship the u.s. will be in for a lot the only game in which the your community is making noises chinese making noises you know we're not alone now in our ability to be a repository for financing in the world the results could spark a replay of the two thousand and eight economic meltdown except this time washington not wall street would be responsible for the first time in history our country's aaa

seventy five percent more than that can not agree with spending cuts in fact they were born and so security continue at its benefit rate more so than they wanted the deficit to be taken in fact all of two to one is the proportion to one tea party members also believe that it should be no cuts to social security benefits so it's not even there are conservatives it certainly not you know those that are looking towards retirement and certainly not some really nice people making over one hundred six we put. it in one of ratings because almost because they also collect social security checks so you know george soros gets the check so the photos. the koch brothers so it's also about them as well it is one of the few programs that literally goes to everybody well back to the compassionate conservatism was that just a brand i mean i never saw any evidence you know george herbert walker bush you know women were rolling this thing out his thousand points of light it was basically government doesn't do anything in churches to do this stuff you know go find a rich person to bed for a while and that's a

the west the question of security becomes absolutely central in any in the in the value system so security i think is another issue that we need to talk about because many people are starting rationally western about security everybody wants security bill go ahead go ahead go ahead no no everybody wants it you know i mean everybody wants security that's absolutely right but people have felt often that their security has been in some ways destroyed by what the west suggests that they're giving the world democracy i mean the security of iraq was destroyed by the so-called desire of the bush government amongst others in europe to provide what they saw as democracy what kind of security is that ok bill go ahead jump in. i'm not here to defend the backwardness leave me i have no interest in doing so. but if we agree bill maybe you don't eat. i'm sure we agree on a lot of things ok if i could but that does bring up the point i mean you know in the west i mean is the west now embodied by dropping bombs on people with the name of freedom i mean you know that's certainly a common etiological use of

privatizing title means and social security and medicare as we know it others are a bit sneaky here they're sneaky strategy and really it is incredibly sneaky because it sounds so reasonable is something called means testing as in only paying our benefits to people who need them and withholding social security checks for millionaires. the way i think the more fortunate in our society needs to participate is by taking away some of the benefits they don't need and i would include that not only benefits in social security. and medicare which both should be means tested as we let the age of so security gradually rise to age seventy by the year twenty thirty two and we means test the benefits people who are at the top end of the socioeconomic spectrum can stand to sacrifice a little bit in terms of the benefits they receive to put back in and starting security every a bipartisan effort to make sure that social security stays adjusting the age looking at making benefits. sure this seems reasonable i mean why should billionaire warren buffett collect an eleven hundred dollars a month social security check why should billionaire charles koch get medicare thus the means

we have added on to social security so many different payments like glenn is talking about. that is overwhelming social security. i pushed back in 2005 for a bill that for the first time in the 1930's, every time a but it comes into social security payroll tax would go in as cash to draw interest or dividends in the social security trust fund. never had has come in. and go spendiou it. in texas, you get four times more than you do on social security. we could cut out people that are cutting social security checks where it is really not social security. then we could deal with that issue. a number people have proposed this. heritage is done tremendous work. we hide so much in the whale welfare and disability payments, all through the budget. people do not realize -- 7% of one budget is food stamps. if we could take every bit of welfare and put it in a welfare committee, then you would see that there are 85 different groups that will buy a 20-seat vanity's town and carry three people to take care of their issues. we could consolidate that and save hundreds of billions. until we

technology and blend it with public policy and economics to create a sustainable system of cyber security. so we are a security organization, and represent our company's security interests. host: when you look at the cyber security proposals put up by the white house this summer, what is your reaction? the support it? what concerns you? guest: there are a number of things and the proposal that have broad support. things such as providing more cyber security education, developing a much better system with in the government to manage their own cyber security research and development on next-generation items. i think where we feel the administration has not met our expectations is when the deal with the private sector. the private sector owns, operates, and creates the vast majority of what is the internet. and we do not believe that, without a robust and really engage partnership between the public sector and the private sector, we are going to be able to achieve a sustainable system that our alliance is interested in. we are disappointed with the entire section that dealt with developing a mod

the government said most recipients of -- sent most recipients of so security a letter from cpi, consumer price index. they say the consumer price index is what is preventing them from getting people on social security and disability a cost- of-living adjustment. host: that is in place in a -- as inflation, essentially caller: someone brought up about how much food is costing today. this went out to all the recipients. i just want to say that is not right. the grocery store cost more and goods across the board that we use every day cost more. host: next is john joining us from south dakota, independent line. caller: good morning. host: what do you think of this package as outlined last night? caller: i think the democrats need to wake up and smell the coffee. as an independent contractor, i have to place bids almost a year or more in advance and they raised minimum wage which i cannot afford because i had the contract in place. they need to wake up. host: what specifically do you mean to wake up? what do you want changed? caller: i want them to realize we cannot have the largest increase

they got into optus the white house has and now they've got it and they are tasked with writing so security in medicare that is what they are supposedly going to change is twenty seconds to go here how badly has he burned his base will recover from i mean i don't think that it's just his base i think eighty two percent of the country does not want to see such security and medicare benefits cut and that is what we're looking at we are manifestly looking at god is what will come out of this cat food commission and if it doesn't there are going to be counties that neither party is going to want to pay so they are absolutely going to go come in track and psychotic this is and i don't think that's just its base that's going to care and this is why where politics again thanks so much thank you so now that we can avoid default economic doomsday at least for now what will this debt limit deal mean for a limping economy president obama said this. the first part of this agreement will cut about one trillion dollars in spending over the next ten years the result would be the lowest level of annual dom