- Welcome to the 700 Club.
$600,000 in debt,
what's that?
That's what a child born today,
will pay over his or her lifetime
on account of the president'soutrageous $5 trillion budget.
Moderate Democrats Don'tlike the high price tag,
but Chuck Schumer isbehind every part of the,
what he calls the big, bold, robust way.
Not one Republican supports it.
So what happens next?
Here's Capitol Hillcorrespondent, Abigail Robertson.
- Moderate Senate Democrats
hope to convince their colleagues
to cut the multi-trilliondollar budget bill
before they commit their support.
While Senate majorityleader, Chuck Schumer,
vows to keep all ofpresident Biden's agenda
in the final product.
- It will have everypart of the Biden plan
in big, bold, in a big, bold, robust way.
- Democratic socialist, Bernie Sanders,
Senate budget chairman,
exerted, major influence on the bill.
- It really is the mostprogressive priorities we've seen
out of the Democratic partyput into one proposal.
- Connor Semelsberger fromthe family research council
says this bill is not what families want.
- It really is this liberal wishlist
that is couched in this languagefor being about families,
when in actuality, it'sreally what liberal leads,
many of which don'thave children themselves
are dictating for the rest of the country.
- Semelsberger says Senator Joe Manchin
helped Republicans take an important step
in preventing taxpayer fundsfrom paying for abortions.
- Senator Lankford workedwith his colleagues
across the aisle, andactually got an amendment
added to this budget resolution,
which reaffirmed the Hyde Amendment
and then the Weldon Amendment
which protects the conscienceof healthcare professionals
to not perform abortions.
- Economist Stephen Mooretold CBN News' Faith Nation
he's aghast at how much money
the U.S. government plans to borrow.
- This is a gigantic amount ofmoney, each child born today
if this passes, will pay $600,000 in debt
over their lifetime.
I have nothing good to say about this,
that we should be saving moneyright now not spending it.
- And fears if this becomes law,
it will cause a financial crisis.
- I am very worried about inflation,
especially if they pass.
Look, if you pass anotherfour and 1/2 trillion dollars
of debt borrowing,
that's gonna be financedby printing more money,
and when you print more money,that means more inflation.
- As House Democrats prepare to take up
the budget reconciliation bill,
there's a chance the pricetag could go even higher,
and they may remove Senator Lankford's
pro-life protections too, Pat.
- Abigail, give us asense of the timeline,
what happens next and whatelse do they have to do
before that bill becomes final?
- Well, it's important to know
that what the Senate passed this week
is really just the first step
in the budget reconciliation process,
and is just a framework.
So this is now moving on to the House
that's going to reconvene August 23rd,
and when they come back,
they're going to fill in thedetails of some of the things
that Senate Democratswant to see in the bill,
the white House wants to see in the bill,
and they're going to merge that
with some of the budget plansthat House Democrats have,
and as this process plays out,
we can expect to see probablysome pretty public battles
between moderate House Democrats
and progressive House Democrats,
who both know in a veryslim Democratic majority
in the House, that theirvotes are incredibly important
that their votes matter,and moderate Democrats
wanna bring the price tag down,
while the progressive Democratswant a little more spending
for some more programs.
So it's going to be very interesting
to see how House speaker Nancy Pelosi
goes about handling thisto get everyone in line
because they can just lose a few votes
in order to get this passed.
But I think we'll see the final product
sometime in the early fall.
- Manchin and Sinema aregoing to be for or against it
in the senate, do you know?
- This is the big question,both of those senators
are in their home districts right now,
they're gonna hear a lotfrom their constituents
about how they feel,
and both of them have very publicly,
since taking that vote earlier this week,
come out and said that theyare incredibly uncomfortable
with the $3.5 trillion price tag,
and they're gonna try and get,
they're gonna use negotiating power
to try and get theircolleagues to make cuts.
But as I said, once, whenthis bill hits the House,
the price tag could go even higher,
but they are crucialvotes, and as you said,
every senator needs to be in line,
every Democratic senatorneeds to be in line
in supporting this billin order for it to hit
president Biden's desk,and at the end of the day,
they will have negotiating power
but I think it's very unlikely
that either of them vote against it,
because it really is the heartof president Biden's agenda.
- Well, as I understand Idon't wanna belabor the point,
but this is three and 1/2 trillion,
but they're gonna addanother three trillion
and it's gonna go five,six, seven trillion
before they're finished,am I right on that?
- Well that's, so some ofthe estimates are saying
that it's, that right now
it looks like three and 1/2 trillion,
but over time it actually could be closer
to the numbers you'rementioning, 5 trillion,
because once theseprograms are put in place,
Republicans and Democrats know
that they are almostimpossible to scale back.
So these are programs thatonce the bill puts them in,
we will likely have them forthe rest of our government,
and they could get veryexpensive over time,
and the price tag could get much higher
than what's being predicted right now.
- Abigail thanks for your report.
Now CBN News FinancialEditor, Drew Parkhill
is here to talk about the economic impact
of this proposed government spending.
How would this big budget spending
affect an average American Drew?
- Okay, this is very important Pat,
because this plays right off
of what Abigail was just saying.
That this spending itbecomes institutionalized.
The Democrats realizedthat they have a moment,
quote, unquote, where theyhave all three branches,
which doesn't alwayshappen all that often,
so even though they havebasically no real majorities,
it's basically 50, 50 across the board,
they're just gonna go for it
because even if they losenext year in the House,
hey, their programs are thereand they're there forever.
So here's, what's notbeing talked about Pat,
about this budget blueprint.
They're only projecting,
they're projecting good growth this year
after the lockdown's lift,
because the growth Biden talksabout the Biden recovery,
it started last year, okay?
That's a statistical fact.
So we're gonna have good growth this year,
pretty good growth next year,
but then they were onlytalking about 1.8% growth.
What does that mean forthe next couple of years?
It means businesses grow more slowly,
income grows more slowly,
so people are gonna haveless money coming in,
but prices are going up and by the way,
this is very important Pat,
even as prices are going up now,
income is going up now,
but prices are going up a little more,
so people are starting to fall behind
and that's a big concern.
Now, let me step back andlook at the bigger picture.
The president's talking about
what we're gonna be paying for this,
no, their own budgets areprojecting massive deficits.
Right now as this graphic shows,
we are at $28 trillionin our national debt.
They're looking at 42trillion in about 10 years.
Now, what do averagepeople think about that?
they believe 61% accordingto a Rasmussen poll
believe that Biden administration
will raise taxes on the middle class,
even though they say,"Oh that won't happen,"
27% say they don't think it's likely,
and 12% say, well, they're not sure.
But still Pat, a clearmajority expect taxes,
higher taxes on the way.
- This is true,
this whole thing isgonna kill the economy.
If they raise all these taxes,
if they take away the capital gains tax,
if they begin to raise theceiling on inheritance,
I mean, the stuff they're talking about
will destroy this economy.
- Absolutely, it wouldabsolutely slow down
economic growth, big time.
I mean, there's no question about that.
You can't have all thisgovernment and these higher taxes
because there's research that indicates
once you get a certainlevel, above a certain level
in taxation, the economysimply slows down.
And by the way, that will meanslower stock market prices
will still go up, but at a slower rate.
So yeah, there's no questionand that means lower income
while prices are goingup at the same time,
so your standard of livinggoes down over time.
Thanks Drew, our CBS newsfinancial editor, Drew Parkhill.
Well in other news, it'scalled energy terrorism.
That's what experts arecalling suspicious activity
in the streets of Hormuz.
The main shipping route foroil from the Middle East.
The big question, is Irantrying to shut it down?
National Security correspondent,Caitlin Burke has that.
- We've recently seena deadly drone attack
on a commercial ship attributed to Iran,
an attempted hijackingthat Iran is believed
to be responsible for, andsuspicious communications
coming from several otherships in the same region.
- It's a power play, theydon't really fear retaliation
from the United States.
And what they're sayingto us quite bluntly
is that they are now very comfortable
disrupting shipping through the Strait.
- The Strait of Hormuzconnects the Persian Gulf
and the Gulf of Oman.
It's a crucial shipping lane for oil
coming out of the Middle East,and Iran no longer needs it.
Recently launching theirown oil export terminal
at Jask Port.
- Jask is below the Strait of Hormuz,
the Iranian regime investeda huge amount of resources
and money in that port sothat they can export oil
from outside of the Strait,
from the Gulf of Oman ratherthan the Persian Gulf.
And, so that gives them the flexibility
to threaten the Strait.
- Victoria Coates, a deputynational security advisor
under the Trump administration
says it's also important to factor in
the hard line new governmentthat's now in power in Tehran.
- They are showing everyone in the region
there's a new sheriff in town.
They want to try tomake clear to the world
that they are unbowedby the U.S. sanctions.
- Continued attacks
on ships traveling throughthe Strait of Hormuz
could result in global oilshortages and higher prices.
But the U.S. is in a unique position.
- The Iranians don't need the strait
and the reality is that we don't either.
Thanks to the American energy Renaissance
that we've seen overreally the last decade,
but particularly over the last five years,
the United States isnow one of the big three
energy producers in the world,
along with Saudi Arabia and Russia.
- There is concern however,
that the Biden administration'senergy policies
are curbing domestic energy production.
- On the one hand, they're gonna cancel
the Keystone Pipeline, on the other hand
they're gonna green lightthe Nord Stream 2 Pipeline
into Germany.
So they're constricting flows of energy
through the United Statesby canceling Keystone,
but allowing the flow offossil fuels into Europe.
- While launching provocationafter provocation,
Iran continues to delay negotiations
about reentering a nuclear deal,
experts warning that now is the time
for a strong response fromthe Biden administration.
Pat.
- Caitlin, what kind ofresponse should Iran,
would bring Iran backin line do you think?
- Well, back in 1988,Iran took similar action,
disabling a U.S. ship off of Qatar.
Then president Ronald Reagan responded
by launching Operation Praying Mantis,
which either destroyed ordisabled half of the Iranian Navy.
As you may remember, thatreally slowed them down.
So experts are saying, we needa stronger approach like that
to the provocations that we're seeing now.
- Why is now the ideal time
for that kind of strong response?
- Well, during my conversationwith Victoria Coates,
she pointed out that muchof the strength and control
Iran is trying to project tothe U.S. right now, is a show.
In reality, they're dealingwith U.S. sanctions,
but also a lot of domestic unrest,
people are angry about the waythat the pandemic was handled
about work conditions, abouta severe water shortage,
about a government that doesn'thave their best interests
in mind.
So now is the best timefor Biden to take a page
from Reagan's playbook,
anticiPating that Tehranreally is struggling
to juggle it all.
- Caitlin, thank you very much.
Ladies and gentlemen I just wanna say,
America, when you look at the Permian,
when you look at the fracking
of all the energy opportunities,
when you think of what we have in Alaska,
we are swimming in oil.
But what's happened Bidenis trying to curtail
American energy productionunder the chimera
of the Green New Deal, it's nonsense.
And he was actingillegally when he shut down
the Keystone pipeline, but,the people who were behind it
have stopped permanently,
he didn't have the authority to do that,
but he did it anyhow, he's doing,
he's acting as a dictator,
a terrorist without anyregard to the constitution.
We have plenty of oil here,
especially when you look up in Alaska
and the Permian Basin and other places,
but what is happening?
Biden is trying tocurtail American energy,
while they're actually calling on OPEC
to increase production.
The whole thing is insanity,it's as if they hate America,
and they're trying to destroy us.
