for republicans. so what about this point, ezra, that the president, the federal government could easily meet its obligations on actual debt payments through bonds and that sort of thing. but it would be the spending, the discretionary spending that they would have to cut under these circumstances. so there wouldn t ever be, many republicans insist they wouldn t ever be a realistic prospect of default in this. and that is why the president uses the word obligations, instead of the word debt because they may just agree with them that there wouldn t actually be a debt default. it is unclear, we literally don t know what would happen because it never happened before. so a legal authority is not all obvious. so there is a question, for the treasury department, to decide if we pay off the bond holders,
cliff, which you like to call it the curb. and many thought president obama wanted to go over in order to raise taxes. to do the same thing over the debt ceiling and get full blame for it, it could genuinely destroy the republican party, of course while destroying the economy. there is that little problem, for republicans. so what about this point, ezra, that the president, the federal government could easily meet its obligations on actual debt payments through bonds and that sort of thing. but it would be the spending, the discretionary spending that they would have to cut under these circumstances. so there wouldn t ever be, many republicans insist they wouldn t ever be a realistic prospect of default in this. and that is why the president uses the word obligations,
$848 billion is from ending the wars in iraq and afghanistan which was money we were never going to spend any way and is bore road. and $800 billion from lower debt payments. mr. goolsbee, i have looked at the president s plan. he has almost no tough spending cuts. doesn t shrink the size of government and does nothing serious about structural reform of entitlements. look, i the premise of that question is unilateral action and the overriding summary the president has put forward is he put forward a budget in the discussion of the budget and in the debate last year over the dent ceilin debtt would get to the $4 trillion goal that came from bowles but part with taxes and part with spending cuts. chris: but the spending cuts he is talking about the if i may, if i may, mr. goolsbee. you would agree that the spending cuts that he put forward that are in his budget
$848 billion is from ending the wars in iraq and afghanistan which was money we were never going to spend any way and is bore road. and $800 billion from lower debt payments. mr. goolsbee, i have looked at the president s plan. he has almost no tough spending cuts. doesn t shrink the size of government and does nothing serious about structural reform of entitlements. look, i the premise of that question is unilateral action and the overriding summary the president has put forward is he put forward a budget in the discussion of the budget and in the debate last year over the dent ceilin debtt would get to the $4 trillion goal that came from bowles but part with taxes and part with spending cuts. chris: but the spending cuts he is talking about the if i may, if i may, mr. goolsbee. you would agree that the spending cuts that he put forward that are in his budget plan are largely bogus.
drop in revenue has forced the city to make cuts. enough and now they ask a judge for help. in all, 13 cities, towns and other local governments filed for bankruptcy protection, the highest in two decades. what does it mean for the city? it does not wife away debts? guest: correct it is called chapter nine and it protects them from creditors while it figures out a way to pay off as much debt and determine spending cuts needed to come as close to a balanced budget as possible so a judge has to approve the working budget unbankruptcy and set as deadline not implementation so in the case of stockton, it will operate under bankruptcy protection by cutting $10 million in debt payments to the creditors of its total $700 million bond debt so just a fraction, there, and it will scale back retiree health care, and cut employees salary so bankruptcy is really meaning