This Week with Christiane Amanpour - July 31, 2011

Guests:
David Plouffe - White House Advisor
Sen. Lindsey Graham (R-SC)
Paul Krugman
George Will
Grover Norquist
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Amanpour: OMG the U.S. is out of money
and the stock market is tanking - but is
there a glimmer of hope?

Stephanopoulos: it’s a grand compromise
- the President agrees to 2.4 trillion in cuts
and the GOP agrees to pay Bush’s debts

Amanpour: sounds fair

Amanpour: Pluffy is there a deal?

Plouffe: we’ve agree that there should
immediate cuts followed by a committee
with the power to cut even more

Amanpour: what about higher taxes
to lower the debt?

Plouffe: the committee will be made
up of people who hate their own party
and they can recommend higher taxes
which will be ignored

Amanpour: what if Congress does
ignore their recommendations?

Plouffe: if they fail then we will have
a trigger to cut more spending

Amanpour: will you get a deal to raise
the debt ceiling which was routine until now?

Plouffe: probably since this is money
we already spent

Amanpour: I’m skeptical

Plouffe: it’s inconceivable that a federal
officer holder would let America default

Amanpour: that’s not what I hear

Stephanopoulos: Obama said he wants
a balanced approach but the trigger is all cuts
and no tax increases

Plouffe: but the Magic Committee!

Stephanopoulos: sounds like the GOP
has no reason to agree so the
Committee will surely fail

Plouffe: but the looming trigger
will scare them

Stephanopoulos: did you give the
GOP what they want?

Plouffe: no Obama is still black

Stephanopoulos: would Obama accept
all cuts and no taxes?

Plouffe: maybe

Stephanopoulos: you gave a lot away though

Plouffe: this has been a healthy debate

Stephanopoulos: seriously?

Plouffe: we learned some republicans
want tax increases

Stephanopoulos: name one

Plouffe: John Boehner

Stephanopoulos: he only agreed to that
because Obama made him cry

Amanpour: Why doesn’t Obama stand up
for his principles?

Plouffe: this Super Committee is going
to cut entitlements which will be awesome

Amanpour: progressives think you
all have caved

Plouffe: true progressives should
want the debt cut the most!

Amanpour: why

Plouffe: high interest rates!

Stephanopoulos: they’re at an all-time low

Plouffe: but what if they weren’t?

Stephanopoulos: will you cut Medicare and Medicaid?

Plouffe: we’re going to strengthen Medicare!

Stephanopoulos: how?

Plouffe: by cutting the debt!

Amanpour: it’s shameful that U.S. soldiers
are worried about getting paid

Plouffe: and getting killed

Amanpour: that too

Plouffe: it’s okay - there’s $10,000
in the White House cash box

Amanpour: what do voters think of all this?

Plouffe: Americans are enraged by GOP
threats so we had to cave in

[ break ]

Amanpour: Linds is there going to be a deal?

Graham: this is a victory for the GOP because
for the first time we were able to use the
debt ceiling to blackmail a President with
a threat to wreck the economy if he didn’t
give in to our demands

Amanpour: success indeed

Graham: it’s historic

Amanpour: can the Tea Party vote for any deal?

Graham: no because they want government hands off their Medicare

Stephanopoulos: really

Graham: seriously they don’t support the
current deal because it doesn’t go far enough

Stephanopoulos: are you kidding?

Graham: we still have a debt which is unacceptable

Amanpour: that’s crazy

Graham: Obama has no plan

Amanpour: he gave you everything he wanted!

Graham: we haven’t eliminated Medicare,
Medicaid, public education or fire fighters

Amanpour: Soldiers in combat are asking
if they will not get paid because of the Tea Party

Graham: I would have told that soldier
to stop whining and worry about the debt
passed on to his grandchildren

Amanpour: the debt was caused by the
wars he’s fighting

Graham: thank god for the Tea Party -
do you want America to become Greece?

Amanpour: it’s a very nice place

Graham: Medicare is killing America!

[ break ]

Amanpour: is there a deal?

Will: yes the GOP won

Amanpour: President Norquist will you veto this?

Norquist: yes I told Boehner and Reid
that I can sign this bill

Stephanopoulos: apparently the GOP has got
spending cuts and extension of the
Bush tax cuts

Krugman: we should increase spending
which would help unemployment and raise the debt

Amanpour: so what will happen now

Krugman: we will have a Lost Decade

Amanpour: with a Smoke Monster?

Krugman: hopefully with a better finale

Will: cash-for-clunkers caused the
recession in 2008

Krugman: I said in 2009 we needed a
much bigger stimulus

Will: try selling that to the American people

Stephanopoulos: if the GOP caused a default
Obama would be blamed

Norquist: taxes are bad

Krugman: even Republicans think we
should raise taxes

Stephanopoulos: Obama doesn’t have
the votes Paul!

Krugman: Obama could print platinum coins!

Amanpour: why didn’t he print coins?

Krugman: it’s a mystery

Stephanopoulos: what the hell are
you talking about?

Norquist: Americans love the Tea Party

Krugman: in 2010 the GOP won vowing
to protect Medicare!

Norquist: you do what it takes to win Paul

Amanpour: thanks for coming everyone
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