That we have had as we now have almost 6 trillion of the foreign money invested in the american paper, which is enabling us to borrow money at much lower rates. They will have a huge affect on the united states. And as they are basically showing you the repository of the worlds wealth as were not over this yet. It will last for a while until theres a greater political making in the government that will be willing to jeopardize our credit that will be so critical to the united states. Okay, now, new news is ole news. Summit, 2011, two plus years ago. History headlines and news stories warned of the catastrophic consequences of the u. S. Default on the debt. Interest rates, they would rise. The dollar would shed their current staters. The world would be plunged back into a recession. Americas reputation would be tarnished. For were not talking about this months news. This was back in the summer of 2011. When the white house and congress had a standoff. Over increasing the debt ceiling at a mere 14. 3 trillion as opposed to todays robust 16. 7 trillion. They downgraded the u. S. From their aaa Credit Rating of outstanding to aa plus. Because of the political gridlock. That gridlock has since become routine. In 2012 the stalemate was over the socalled fiscal cliff. The double whammy of the bush tax cuts and the schedule start of the sequestration cuts that would derail the economy. At the last minute mrs. Obama and boehner cut a deal to avert that calamity. This years 2013 budget ceiling standoff is now scheduled to go into 2014 reveals a new path in americas policy. The fundamental functions of the government, it means that the white house and congress, they failed to negotiate until the crisis looms. And then only acts at the last minute. Question, is this the new normal on the american politics . Timothy . The reason that it is the new normal isnt just that the parties are that separated. These giant groups that can go out and fund. So the party leaders, they dont have the control that they used to have. Rank and file senators and Congress Really had to listen to what the speaker or the majority leader would tell them to do because that is the only one for them to raise money. But now if you are a member in either groups, you can go to the internet that dont rely on the business lobbyists and who they are upsetting. So they will go out to a bunch of conservatives who will watch their ads. Well, youre right. That the leaders dont have the tools. They cant give away the bridges anymore. The eric marks done away with earmarks done away with. So the leaders have been neutered and the outside groups like the Heritage Action and club for growth have really driven these politics and have driven the Republican Party right over the edge. Which is why its so important for them to stare down the other side at this time. In 2011 it was widely perceived that he was the one to get rolled. Thats why they thought that they could use their threat of the shutdown and the default to get what they wanted again. And this is unprecedented for them in the american politics, to try to overturn the law through these names. So the president has won the important principal here, not only for himself, but for the future president s. Now, when did the bipartisanship go out the window . Well, we have had the bipartisanship as we still have that to a degree. Did we have it in a first term of barack obama . We have a diminished amount of the bipartisanship. What is remarkable about their presidency is that they have virtually no relation with the republicans and very few relations with the leaders of the democratic party. In the senate, so he has very little of that reach that either Ronald Reagan was able to do when i watched myself. Bill clinton was able to do, and it makes a huge difference. And this is a part of what contributes to what is really a tragedy for the united states. Democrats control the presidency. Democrats can throat house. Democrats, the senate. The republicans, they control the house. Im talking about the first term. Democrats controlled the senator in the house. They controlled the whole world. They froze out the republicans, did they not . They didnt freeze out the republicans. Let him finish. Let me put it this way, republicans certainly felt that way, even if other people didnt feel that way. Republicans ended up like that. Obama told them to take a backseat. Do you remember that . Absolutely. If you want to let in another side here, republican the decision made early on by the republicans that they were not going to cooperate with anything that this president has done. That was a decision made. Now you have exalted the tea party, the radicals, they went in on their own views. Now theyre having trouble controlling them. The republican parties, theyre cracking up here. The democrats are unified. The president has been in a fox hold with the democrats for the last two weeks. Plenty of bargaining going on more. Dont worry about that anymore. And he has talked about, responsible republicans, and you have the republicans in the senate coming over to the white house trying to figure out what they are going to do to contain, control, reign in, whatever expression you want to use. This president would not negotiate with boehner. He refused to negotiate with boehner. When is the last time that the president did that . I recall Speaker Boehner saying that he is not going to. I mean if my voice were stronger, i would be even more powerful. How does this whole thing play in theory . Youve heard the phrase. Yes, well, i went to peoria, illinois last week to see what happened. People to some externat they are the government that works. Were looking at them ramped up in that place and how they needed to get funded or the confrontation in congress. And what is really happening here is that this is being driven by the middle class. People are feeling like they are not getting that there and the american dream, that it is selfindone. That this is the driving force as they need to explain the new normal. Because it is that kind of deep anger that they cannot deliver what the middle class americans would want. And to see a big shot for them, spread equally. It will be on both of your houses. Is that the mentality . That is the mentality. And in a sense that it will be deserving most of the bipartisanship. Now, on the political probability scale, 0 to 100, 0 meaning no likelihood whatsoever. And 100 meaning ultraphysical. That is ultraphysical. You got that . Now, how likely is it that there will be a repeat of the Government Shutdown in january . 0 to 100 . 22. 22 . 22. Okay, ill go half of that, 11 . Republicans would have to be truly suicidal. Charlie cook has already switched 14 seats from republican landing to democratic leaning. And the republicans, they are going nowhere with their bids for the senate that they have cornered themselves here. So far to the right with this destructive way that they have vanished the last couple of weeks. Okay, david . 30. 30 . Yeah, because of the debt ceiling. That they may have another point of leverage. It is very hard to, you know, they see this election as an advantage for them. And god knows why they think that. With 73 of the americans in the poll wanting to throw out everybody in the congress, i think it is under 10 that they wont have a deal. They dont want to risk the wrath on both sides of the aisle of the American Public and they are just at that point. I agree with you. I think that it will be low. Thats the thing. Now, issue two, no winners. Now, theres been a lot of discussions lately of the politics of this shutdown. But lets be clear, there are no winners here. I will look for willing partners wherever i can to get important work done. And there is no good reason why we cant govern responsibly. Despite our differences. Without lurching from manufactured crisis to manufactured crisis. After weeks of democratic denunciations of the republicans as hostage taking, ransom demanding, and extremists who want to, blow up the whole economy. President obama sounded a note on thursday. In the statement he read in the white house, mr. Obama urge republicans and democrats to look for areas on which they can agree. Raging from the upcoming budget negotiations to immigrations, and the bomb build. Mr. Obama made no reference to his own role in the recent standoff, which began in late summer, when he insisted that he would not negotiate with republicans over the debt ceiling extension. Nor did he mention his role in the Government Shutdown, resented on his refusal to negotiate with republicans over the oneyear exemption for individuals to purchase insurance on the Affordable Care act, despite mr. Obamas recent oneyear exemption for businesses from their mandate to provide insurance. The observers of the recent standoffs are wondering whether the entire crisis should have been averted, if mr. Obama has sounded this tone two months ago when the battle lines were forming. According to the economist magazines, with the lexington deal. I hope im not revealing state secrets. [ laughter ] obamas Approval Rating climbed to 56 and his disApproval Rating, 56 . His Approval Rating dropped to 42 during the standoff. Is this an incentive for obama to negotiate with the republicans . Why doesnt he call their bluff . They want longterm deficit reduction. He should put some things on the table as we have seen this. But if you are all about winners and losers, we dont want to forget about the International Side of this, which is a huge loser for this. America around the world. Why was president obama suppose to be as this kicked off. He was suppose to be on a really important tour trip of asia, yet the asian allies were very worried about the rise of china. The country where i used to be posted. They wanted to seat american warships, playing their role as a free trade refugee. Obama was going to go and reassure the asian allies, making this pivot to asia as he will need to do that. And he could not set it off. And their own domestic policies, they were in the white house with some interviews as the passports came back from the travel office for all the guys that were suppose to be on the asia trips, handing out the american passports because they were grounded in washington as i sat on the National Security council. Thats a really horrible thing to see. If you want to see america play a big part in the world. Theres huge opportunity losses here. 24 billion has been attached just to the shutdown alone. Youve got the chinese with a friendly competition with them as they would like to have their currency be the main currency of the world. And youre going to be able to see some people, they are beginning to take it seriously. So you know, i agree that there will be no real winners here. And the loss of faith and confidence in america and how to govern ourselves for the party for the democrats who believe that the government helps people. And they want to go to work as there will be a loss here as well. But the president , they have put some things on the table. But the republicans, they refuse to put any revenue on the table. Now, thats the big thing for them once again if they will be able to go for some loophole closings, whatever they want to call it. And then youve got the makings of a real deal. What do you think of the 24 billion figure that you just heard . There is some truth to it. Thats what it has cost us. In terms of the economy growing at a lower rate because of all the things that were suspended while the government was shutdown. And that there is absolutely nothing. Is that immediate . No. Because what im going to repeat over and over again, we have a government that works primarily under president ial leadership. It was completely absent in this particular crisis. The president , they would literally not talk or negotiate with boehner, smoke boehner made that very public and he was very upset about it. He has no relationships with the republicans in the house or indeed in the senate. He has no relationships indeed with the democrat leadership of the house. That is absolutely critical to having the quiet kind of negotiations and the private negotiations producing a lot of deals in the past. Let me finish. This is something, which i know let him finish. The repetition does not play its demeanor. And for anybody that has been involved in negotiations, they know how critical that is. And that leadership will be there as i said, clinton had it, reagan had it, this guy does not have it and everybody in washington knows that. And the call for the bipartisanship sometimes is just great to my ears. Because one of those things that they agree on that obama is talking about is a farm bill. This is a bunch of corporate welfare that a lot of people, this is the sort of things that a lot of people on the left and right are getting fed up about it. Theres a big popular sort of business view of what they want from immigration. And thats what would end up passing, bringing in a ton of low skills. That does not help the middle class. It does not help the out of work. That is a very narrow viewpoint. Both these bills passed with large majorities in the senate. It doesnt mean that there is a majority population. No, they could be made better, but you dont close everything. Now, what does it say for the leadership . How can you look at john boehner and the way that he has been moving on to the small minority of the caucus to say oh if the president had negotiated with him, that he only wanted to be able to negotiate to get what he wanted. The president again, he stood his ground this time. And he really did put the foundation on the importance principle that you cant use hostage taking and yes, thats the common term. As president hes the only elected official that will be representing all the people. John boehner represents his constituents. All of them, of course, but hes a republican. Likewise and like wise applies to them. Whats the point . The point is is that obama has to represent all the people. John boehner is the speaker of the house. And he refused to put the measure on the floor that eventually did get a resounding majority with all 200 democrats and 87 for them there. You cannot compare the president to the united states, which is the speaker of the house. And that they are the leader of the country, everybody, they need to look for the leadership, including both sizes of congress. The only one, excuse me, who has been able to do this in the past and they have failed to do it in the past. It is the third in succession to the president. Right. And as the president said the other day if you want to reject, go to win an election and make your point. But dont try to break the government that will be for them there. And he acts like a democrat. And the bipartisan votes. Right. But they must represent all the people. Issue three, brazilian wax nsa. Another week, another story about the nsa. On tuesday, the Washington Post reveal that the nsa is quoteon quote harvesting hundreds of millions of personal email contact lists of Many Americans and nonamericans around the world adding up to the sizable fraction of the worlds email and instant messaging accounts. What will the nsa do with that data . They will search for personal connections. They will map relationships among those targets. And surprisingly the last revelation, plus the revelation prior for them there, they have angered the u. S. Allies, noticeably brazil when they assembled that the General Assembly three and a half weeks ago, that they have taken the podium, for spying on their neighbors. And in particular, their politicians and the companies, theyre charging them with the economic espionage. Medaling for them in the life and for the countrys breach of the law. To the principal that should govern the relations for them. , especially among them there. They were taken on by them that they canceled th scheduled state dinner, one of the tough affairs for them to bestow on the global partner. And their own communication in that top advisor that they have been targeted by the nsa. The top oil company, the allegations all stem from the documents leaked to the press by the former contractor, edward snowden, now living in exile in russia. Mr. Snowden by the way won the integrity reward for fruit celling fruit selling for integrity in intelligence. The u. S. Organization of the former National Security official. Well, well, well, we have to reconsider this here. Question, is he using the nsa revelations for the domestic political advantage . Well, you can see the politician in the democracy, yes, a very tough summer. The huge protest for them there. She was an activist for them there, where a lot of people believed that the dictators, they were in connection with the cia. You have a reporter there. Are they trying to deflect the attention from the political problems for them there . And how they have been improving. Shes ahead of the narrow rivals, which will be in division that they will need to challenge the brazilian people for them there. It will be three for them there. Brazil, they are not facing the International Terrorism the way that they are. Theyre very responsible as they have all of this intelligence that we have gathered at the nsa, shall we say eavesdropping has been an intelligent boom for the united states. And enables us to stop many terrorist attacks. As far as im concerned, if you want to know what the country would be like if they have four to five terrorist attacks, then you wouldnt want to know it, smoke its like the government. And the repercussions of the snowden revelations, they continue. And the head of the nsas army general Keith Alexander is stepping down next year. Early next year along with his deputy. Is that unexpected . Kind of. Because i saw his performance on television. I thought he was terrific. Well, hes stepping down to spend more time with his family and the joke is hes stepping down to spend more time with his family, so he wont be spending it with yours. Out of time. Bye bye. Hello, im Llewellyn King, the host of white house chronicle, which is coming right up. My first, a few thoughts of own. I had a dispute with an airline recently. One has disputes now adays with airlines, by the mere act of traveling it seems. I had to change the ticket and they wanted more for the changed ticket than the original ticket. Well, i didnt like this, i wrote something about it. The Public Relations people from the airline called me because it had been published in the newspaper, and said you got it all wrong. You signed a contract with us. No i didnt, i bought a ticket. That is not signing a contract. A contract involves two people agreeing on some thing, all i wanted was a little transportation, i wanted a ticket. A willing buyer and a willing seller, the seller has different agenda. I dont think thats right. Up ve a great show coming for you today with some of my favorite people to comment on these extraordinary times in which we live. Well be right back. White house chronicle is produced in collaboration with whut, Howard University television. And now your program hosts, nationally syndicated columnist Llewellyn King and cohost linda asparello. Hello again and thank you for coming on. When guests to this program come to washington they stay at the american guest house, a very comfortable place somewhere between a club and a hotel. Ore like a club and well located. I use it myself. I do recommend it as an accommodation in washington. I promised you great people on this program today, and here they are. Linda gasparello, cohost of this program. And im very glad to see back at the table, the distinguished author, journalist, former New York Timesman, former bureau chief of the New York Times and the author of several remarkable books. I first became aware of you when wrote that great book on russia, when i first went there. Youre also the author of a very significant book which we talked about on the program recently, who stole the american dream. And we have had more comments on that particular interview than any weve done in many years. People are very concerned and theyre very, very grateful about what has happened to this country. Why are the rich getting richer, the poor getting poorer and the middle getting skeezeder. If you squeezeder. Well, you can. A former man on the hill, and who was the other distinguished i used to work were senator warn ruddman. So youve been in the front any times. Im so glad [laughter] dont worry, you can keep your clothes on. Except you, charlie. Charlie allison of the philadelphia tribune, also of sirius exm radio where we sometimes perform together. Lovely to have you on the broadcast. You know everything, i mean you must, you worked for the New York Times once. What do you make of whats happened . Are we going to be able to get out of this slippery slope that has led to the shutdown of the government of namekaling on a scale that i dont think well, i think its baked in the conflict that we have between the congress, particularly between the tea Party Faction and the house and the president and the democrats, i think is baked into our system now by gerrymandering which has created a whole lot of safe