BUT FIRST TOP STORY THIS HALF
AN HOUR 8 DAYS TO GO UNTIL
MIDTERM ELECTIONS PRESIDENT
TRUMP, HAS BEEN HITTING THE
CAMPAIGN TRAIL EVERY DAY TO
RALLY BEFORE THE MIDTERM, THE
RECENT ECONOMIC SWINGS BUT AT
FOR IN FRONT FOR VOTERS TO
JOINING US NOW, IS DOUGLAS
AIKEN FORMER DIRECTOR, MCCAIN
ECONOMIC ADVISORY AMERICAN
ACTION FORUM PRESIDENT THANKS
FOR JOINING US THIS MORNING.
>> GOOD MORNING.
>> YOUR OUTLOOK FOR THE
MIDTERMS DOUG?
>> WELL, I THINK I DON'T KNOW
MUCH MORE THAN THE EXPERTS,
BARELY SUGGESTS THE
REPUBLICANS ARE GOING TO LOSE
CONTROL OF THE HOUSE DEMOCRATS
WILL CONTROL THE HOUSE
REPUBLICANS COULD PICK UP A
SEAT IN THE SENATE AND THAT
WILL LEAVE US WITH A CONGRESS
THAT PROBABLY WON'T HAVE THE
ABILITY TO GET A WHOLE LOT OF
LEGISLATION DONE NEXT FEW
YEARS.
>> I MEAN IF YOU WERE TO SEE,
THE DEMOCRATS TAKE THE HOUSE
LARGELY EXPECTED, DOES THE
AGENDA THAT THE PRESIDENT HAS
BEEN PUTTING OUT, COME TO A
HALT?
>> IT LOOKS THAT WAY TO ME, IT
IS VERY UNLIKELY THAT THEY ARE
GOING TO PASS ANYTHING TO MAKE
THE TAX CUTS PERMANENT FOR
EXAMPLE, JOB GOOD IDEA I DON'T
SEE ANY REAL HOPE FOR FURTHER
LEGISLATION OTHER THAN YOU
KNOW GETTING THE SPENDING
BILLS DONE, THAT IS THAT IS
KEEPING THE GOVERNMENT
RUNNING, AND THAT IS IS COULD
RUN INTO DIFFICULTY.
>> I WANT TO TALK ABOUT TAX
CUTS I KNOW YOU HAVE BEEN A
DEFICIT HAUCK WANT TO TALK
ABOUT DEBT AND DEFICITS WE ARE
LOOKING AT POTENTIAL TAX BREAK
FOR MIDDLE CLASS UNTIL THE
WORKS PENCE CONGRESSMAN SCOT
PERRY JIEPD US EARLY IN FAVOR
OF TAX CUTS CONGRESS NEEDS TO
FOCUS ON LESS SPENDING FIRST
LISTEN TO THIS.
>> OWE DON'T FIXING YOUR
OVERSPENDING PROBLEM BY TAXING
PEOPLE MORE YOU FIX THAT BY
SPENDING LESS, SO THAT IS WHAT
WE NEED TO FOCUS ON, THE
PRESIDENT, OFFERED A BUDGE
THAT SPENT LESS WE DIDN'T TAKE
MUCH OR ANY UP BEING AS A
MATTER OF FACT THE TAX
PROPOSAL HOUSE SPENT SENATE
SAVED 400 BILLION DOLLARS BUT
YET THE SENATE SENT IT BACK
WITH A TRILLION DOLLARS
ADDITIONAL SPENDING
UNFORTUNATELY TO GET SOMETHING
ALLOWS PEOPLE TO KEEP MORE
WHAT THEY EARNED HAS TO MAKE
IT THROUGH SENATE AS SO LONG
AS FULL OF LIBERAL FOLKS THAT
DON'T THE WANT TO CUT SPENDING
WE ARE GOING TO HAVE THIS
PROBLEM.
MARIA: WHAT ABOUT THAT CAN
THEY STOP SPENDING?
>> CUT DOWN ON SPENDING?
>> NO EVIDENCE SO FAR, YOU AND
I HAD THIS CONVERSATION
BEFORE, CONCENTRATING ON
ANNUAL SPENDING WHICH IS A
THIRD OF THE BUDGET NO ONE
WITH EVEN TALKING ABOUT
TWO-THIRDS OF THE BUDGET THAT
IS -- YOU KNOW, GROWTH RATES
NEXT 10 YEARS 6% SOCIAL
SECURITY 5.8 MEDICARE 5.2
MEDICAID NORMAL RATES THEY
HAVE TO COME DOWN, THAT IS
WHERE THE MONEY IS THERE IS NO
CONVERSATION ABOUT THAT.
I AM SYMPATHETIC TO IDEA THAT
WE NEED A TAX CODE PERMANENT
WITH IDEA OF TEMPORARY TAX
CUTS MIDDLE CLASS MAKES NO
SENSE.
THEY COULD DO THINGS THAT ARE
BUILT ON SUCCESS LAST DECEMBER
BUT DO HE GET SERIES ON
SPENDING SIDE AND THEY WANT
HAVEN'T.
>> WHERE ARE OPPORTUNITIES TO
SPEND LESS TALK ABOUT THAT,
BECAUSE YOU KNOW, THE
COMMITTEE FOR RESPONSIBLE
BUDGET IS SAYING THAT THE
BUDGET IS IN IN UNSUSTAINABLE
LONG TERM TRAJECTORY, WRITES
FEDERAL DEBT HIGH AND RISING
THE FISCAL OUTH MEDIAN LONG
TERMS EXTREMELY TROUBLING THEY
ARE LOOKING AT LONG TERM
OUTLOOK.
WHERE IS THE OPPORTUNITY TO
CUT SPENDING DOUG?
>> WELL FOR THE RECORD I AM A
CRAZY OPTIMIST IT IS WORSE
THAN THAT IN MY VIEW NOT
COMPLICATED SOCIAL SECURITY
PROGRAM IS PROMISING TO CUT
BENEFITS ACROSS THE BOARD BY
25%, FOR PEOPLE IN RETIREMENT,
IN 12 YEARS WHEN IT WRUNZ OUT
OF MONEY A TERRIBLE WAY TO RUN
A PENSION PROGRAM WE SHOULD
FIXING SOCIAL SECURITY RIGHT
NOW SIX OR SEVEN BIPARTISAN
XHIS PUT TOGETHER, PROPOSALS
TO GET THAT DONE THAT SHOULD
BE NUMBER ONE ON THE FOR
ANYBODY, ABOUT WHY WANT TO
HAVE SOMETHING THAT THAT
RETIRESZ CAN'T COUNT ON MOVE
TO THE NEXT BIG ONE MEDICARE
MEDICAID THOSE ARE PRINCIPALS
THAT DON'T SERVE THE
BENEFICIARIES WELL AT ALL OUR
SENIORS DON'T GET HEALTH
OUTCOMES OTHER COUNTRY SENIORS
DO WE SPEND SO MUCH MONEY
INDEED IT HAS UNRESTRICTED
DRAW IN U.S. TREASURY FIRST
THING PUT THOSE PROGRAMS ON
BUDGET LIVE WIN FINITE AMOUNT
OF MONEY SERVE BENEFICIARIES
BETTER MOVE ACROSS THE BOARD
FARM PROGRAMS GO TO ANNUAL
SPENDING THERE IS LOTS OF
WAIST IN THERE, GET SEGERS
ABOUT RUNNING PROGRAMS HE
EFFECTIVELY.
>> YOU NEED COURAGE TO BE ABLE
TO COME OUT DURING AN ELECTION
YEAR, AND SAY, WE ARE CUTTING
BACK ON YOUR SOCIAL SECURITY
CHECKS AND YOUR PENSIONS.
BUT, CLEARLY, YOU'VE GOT TO GO
WHERE MONEY IS THEN THERE IS
THIS GLOBAL MARKET, WORRYING
OVER TRADE AND TARIFFS SENATOR
RON JOHNSON TOLD ME SUNDAY
PRESIDENT SHOULD KEEP PRESSURE
ON CHINA SINCE THEY POSE MORE
THAN ECONOMIC THREAT BUT IS
TARIFFS THE ANSWER.
>> FACE IT CHINA HAS BEEN
STEALING HUNDREDS OF BILLIONS
OF DOLLARS WORTH OF OUR
INDUSTRIAL SECRETS AS WELL AS
MILITARY SECRETS, THAT IS
REALLY I THINK BIGGEST THREAT
THAT WE FACE IN TERMS OF OF
OUR RELATIONSHIP WITH CHINA.
>> I THINK THE GOOD NEWS IS
BECAUSE OF PUBLIC AWARENESS,
THE GAP BETWEEN THOSE ON
OFFENSE AND THOSE OF US ON
DEFENSE, IS -- IS QUITE
HONESTLY NARROWING HOPEFULLY,
IF WE HAVE A UNIFIED REST OF
THE WORLD WHEN IT COMES TO
TRADE AND OUR DEALINGS WITH
CHINA WE WILL DISCIPLINE THEM
TO BEGIN -- YOU KNOW REALLY,
ADHERING TO NORMS OF THE REST
OF THE WORLD TRADING SYSTEM.
>> YOUR TAKING IS CHINA GOING
TO ADHERE TO NORMS ROOMS OF
THE GLOBAL BAS
THE GLOBAL BAZ NOR ON THE.
>> I THINK THEY DO NOT
UNDERSTAND HOW FAR OUT OF LINE
IT IS THE IMPORTANT PHRASE
WITH SENATOR JOHNSON A UNIFIED
WORLD, I DON'T THINK WE HAVE
THAT.
THE ADMINISTRATION HAS
CORRECTLY IDENTIFIED CHINA AS
PROBLEM HAS BEEN VERY
AGGRESSIVE BILATERAL FASHION
TRYING TO GET CHINA TO CHANGE
BEHAVIOR FROM YOU HAD THEERLY
UNSUCCESSFUL, I THINK IT WILL
BE UNSUCCESSFUL BUT ACTING
ALONE THE KEY TO GET A
MULTILATERAL APPROACH WHERE
ALL KEY ALLIES IN EUROPE JAPAN
PARTS OF THE WORLD AGREE TO
ENFORCE BETTER DISCIPLINE ON
CHINA.
THAT IS NOT HAPPENING RIGHT
NOW THAT IS THE MISSING PIECE
IN THIS STRATEGY.
>> I WONDER AS HE CONTINUES TO
DO TRADE DEALS AND CONFIRMS
WITH OTHERS LIKE A DEAL WITH
EU, YOU KNOW, LIKE WHEN THE
NEW PRESIDENT IN IF MEXICO
GETS INTO PLACE YOU SEE
COMMERCE BACK-AND-FORTH FROM
NEW USMCA DEAL, WILL THAT
BRING COUNTRIES TOGETHER IN A
UNIFIED FRONT AGAINST CHINA?
>> IT MAY.
BUT IT IS A BIG IF.
THEY ARE THE -- NEGOTIATED
USMCA HAS PROVISION OF THAT
SAYS ANYONE WHO SIGNS THIS
CANNOT NEGOTIATE A FREE TRADE
AGREEMENT WITH NONMARKET
ECONOMY AIMED DIRECTLY AT
CHINA THAT MAKES SENSE IF YOU
CAN GET THOSE DEALS IN PLACE I
POINT OUT, CANADA, MEXICO HAVE
NOT SIGNS THAT THERE HAS BEEN
TALK ABOUT IT BUT NO SIGNATURE
WE HAVE TO GO THROUGH CONGRESS
AS WELL.
MARIA: RIGHT.
>> GOING GETTING A DEAL WITH
EUROPE TAKES TIME.
SOCIOALL OF THESE THINGS ARE
VERY TIME-CONSUMING QUITE
FRANKLY CHINA HAS A MUCH
GREATER CAPACITY TO WAIT US
OUT.
PRESIDENT XI IS PRESIDENT FOR
LIFE, CAPACITY DIRECTLY
INTERVENE IN ECONOMY IS
ENORMOUS I WORRY ABOUT TIME
TABLES I WORRY WHETHER ENOUGH
PRESSURE FROM ENOUGH COUNTRIES
TO GET THINGS MOVING QUICKLY.