Morning Joe | February 06, 2013
>>> other news. a new government report predicts the budget deficit will drop below $1 trillion for the first time during obama's presidency. the congressional budget office which assumes that federal spending cuts will go into effect march 1st says the government will run a deficit of $845 billion this year compared to last year's $1.1 trillion shortfall. but the cbo's ten-year outlook predicts those improvements will not last. it warns that an aging population will drive up entitlement spending and rising interest rates will put the debt at unsustainable levels. if current laws remain in place, debt by 2023 only ten years from now will equal 77% of gdp. that's roughly double the 39% average seen over the past 40 years.
>>> and president obama is asking lawmakers to take quick action as a march 1st deadline approaches that will trigger deep spending cuts. "the new york times" writes this morning that "mr. obama, who missed a deadline this week to submit his annual budget to congress, acknowledged on tuesday that a broader deficit agreement is unlikely to be reached by the march deadline. he provided no details about the tens of billions of dollars in spending cuts and tax adjustments that he wants congress to pass quickly. more specifics could come when he delivers his state of the union address next tuesday." with nearly $1 trillion of domestic and defense spending hanging in the balance , the president says the impacts are already being felt.
>> they're never -- there are never --
>> we're not going to run it. okay, go ahead.
>> -- there are never specific spending cuts. democrats never provide specific spending cuts. democrats -- alex, i'm just curious, how long has it been since democrats have passed a budget in the senate? watch this. watch this.
>> 1,379 days.
>> where's the full screen ? i thought we had a full screen .
>> since before the ipad.
>> since before the ipad, exactly. no labels, nonpartisan group, of course, has this no --
>> no budget , no pay, which was signed into law by the president yesterday, for this particular bridge on the debt ceiling, but we need to apply it to the broader budget and appropriations process.
>> and the thing is, it's just -- democrats haven't produced a budget in the senate. they haven't voted for any of the president's own budget . there's the full screen now.
>> you were in congress. budget sets policy, right? you don't have a budget , you don't have policy.
>> that's what i don't understand because you get there in january. you get sworn in. and you know what the first four months are? battles over what's going to be in the budget . because you know when that budget falls in april, that's going to define who you are as a party, who you are as a congress, and who i am as an individual member whether i vote for that budget or vote against that budget . the fact that harry reid 's senate and that harry reid himself has gotten in the way of a former really good budget chairman not passing a budget is shameful. and now you have the president saying, well, i'm against the sequester cuts. well, okay, great. what are you going to replace them with? i don't know. no specifics. they never give specifics.
>> so i don't know, because i was working on my column and talking to a couple different people in the white house yesterday. and they were talking about the president's statement yesterday. and he is saying to republicans, come meet with him. anytime. they can come right now. and he will work on a deal. it can be a smaller deal if we can't make the sequestration deadline. and it can involve spending and revenue and a mix, and that they haven't taken their toys and walked away. they've offered $400 billion in health care cuts and other things. the republicans have other ideas, come on over to the white house . put them on the table. let's make a small deal. if we can't get to a big deal , he would like to get to a big deal . and he's invited them over. anytime.
>> so he wants them to come over --
>> what are their cuts?
>> paul ryan put a budget --
>> why doesn't he go to the white house and work on it?
>> -- put on a budget , and democrats absolutely savaged him for two nonstop years. while democrats haven't put forward a single proposal to cut spending.
>> why don't they work together on the cuts?
>> because. because the democrats don't make specific cuts. what the democrats do is they lure republicans in to make cut recommendations like paul ryan did. and then they start putting press releases out saying that they hate old people. that they hate little children . that they hate big bird .
>> before they even go to the white house .
>> it's indefensible what the democrats have been doing.
>> isn't one contribution being our talking about it not in terms of spending cuts because discretionary -- nondefense discretionary spending , as we know, is not so small.
>> 12% of the budget .
>> 12%. so we think about spending cuts, oh, we're going to cut that bridge. that's just -- it's just -- it's not where the ducks are.
>> it's stupid, right.
>> this is middle-class entitlement reform and health care spending reform. those are the two things. it's actually a slightly different intellectual exercise than going line by line and cutting programs. that's not what this is. it's got to be raising retirement ages, raising deductibles on health care . that's where --
>> they're invited to talk about it.
>> that's where it is.
>> which is, katty, why we have such silly debates over spending cuts and tax reform because the money is in long-term entitlement reform. and neither party wants to talk about it.
>> right. i mean, you're right, joe, for criticizing democrats for not coming up with big spending cuts, but look what happened during the presidential election campaign. the republicans backed away from paul ryan 's spending cuts. so actually, when it comes to it, neither party wants to suggest the kind of changes to america's health care system that will have to kick in in 20 years' time when the vast majority of the baby boomers start hitting 70, get sick. it's going to cost a heck of a lot more if we want to keep them healthy in the way that we're doing now. and you're not seeing that debate. you're not seeing the proposals coming from either side about how to really address that because the truth is, either you're going to have to trim the quality of care every you're going to have to raise more revenue. there's going to have to be, at some point, you can make efficiencies, but at some point we're going to have to go to the system and say we cannot continue to have doctors and hospitals paid for service. it doesn't make sense because people are racking up too many services.
>> they have to do it together.
>> a whole psychology that has to happen together, and both sides need the political cover from the other.
>> by the way, i'll say this. on wednesday, february 6th , 2013 , at 6:24 a.m ., we'll have to do it all. you can shoot the messenger if you want, but beneficiaries are going to get less. providers are going to get less. revenues are going to have to be raised. we're going to have to start rewarding people based on results and not just services. all of these, everybody is going to have to give. and these people running around saying, look, you know the beneficiaries, we're not going to have to touch them? all you're going to do -- and zeke emanuel agrees with me -- is create a two- class system where middle-class to upper middle -class americans are going to opt out of medicare because the doctors aren't going to be reimbursed. and then you're going to basically have medicaid for people under 65 and medicaid for people over 65.
>> so that's the long-term vision in terms of what needs to be done. and i would say in short-term gain of politics, the message from the oval office to republicans is very clear, show up for sequestration is on you.
>> that's what they're saying. so good luck.
>> if i were a republican, i'd take it.
>> that willing fun.
>>> coming up, tom brokaw and jane pauley will be here.
>> that will solve the problem.
>>> the most promising companies of 2013 . who should you be investing in?
>> " morning joe " inc.
>> it's a gamble, i'm thinking.
>>> coming up next, mike allen is with us. he's got the "politico playbook." but first here's bill karins.
>> he's a little hungover after national weatherman day.
>> the parties they throw for you guys in studio 54 , man.
>> nothing else.
>> the virgin shirley temples . let me tell you.
>> kicking it old school.
>> good morning, everyone. we have a difficult forecast. if you live up in new england down towards areas around new york city , maybe even new jersey, pennsylvania, pay attention . storm coming your way. possibly the most significant winter storm of the season. right now the storm is just growing. it's in an infancy down in areas of texas providing heavy rain south of san antonio on 35, across 37 and also interstate 10 will be a wet ride between houston and san antonio . all of that rain spreads in the next 48 hours through the southeast including atlanta especially tonight into tomorrow. heavy rain through the carolinas. this is what really catches my attention. this is one of our more reliable extended forecasts. this is where the center of the storm would be on friday. early in the morning . as we go throughout the day, the storm intensifies just off of cape cod . and then at this point, the heavy snow machine would go into work, especially across new england late friday, friday through the overnight into saturday morning. this area of shaded colors here is a foot-plus for almost all of new england . the exceptions being northern new england and possibility of even new jersey getting into some of the backside bands, too. a lot of question marks for areas like new york city . our other computers also are suggesting the same thing with a powerful storm just off the new england coastline. the bottom line is anyone that has travel plans at the airports or the roads on friday from new york city through new england , if you can do them thursday, get it done. switch your flights or whatever else because it could be kind of ugly travelwise on friday. i'll have more details as that storm approaches. you're watching " morning joe " brewed by starbucks. come on,