Sen. McCain on 'FNS'

" And hello again from Fox News in Washington. People lose presidential elections deal what that in different ways some attire -- others licked there wounds. But our first guest has gone right back into the legislative arena. And we're happy to welcome Senator John McCain back to Fox News Sunday as always senator good to have you with us thanks Chris it's nice to be back -- it's interesting times. Let's start with the distinct times and let's start with a 410 billion dollar spending bill before the Senate to fund the government was September. Here's what Barack Obama said to you about the subject in a presidential debate last September."

" Absolutely we need earmark reform when I'm president I won't go line by line. To make sure that we are not spending money unwisely."

" Now the White House says that this is basically an argument over the last bush budget and airports last year's business. Is there were practical case to be made that would all the things that President Obama wants to get through congress he shouldn't get into a fight over this."

" Well first 88 if if he wants to set a standard and wants to set a path then absolutely. He should be in this he absolutely should be and because we're talking about 400. Eighty billion dollars in of taxpayers' money loaded down with at eight billion dollars worth. Of earmark pork pork barrel projects we go into definitions of that but the fact is unneeded unwanted and unnecessary. And it is not last year's business it's money that's going to be spent. As soon as the president signs -- bill and he should sign it he should veto it and send it right back."

" All sides expect that this bill is eventually and sometime this week going to get through congress. Why hold it up over the weekend do you really think you can stop -- and what do you think of Republican senators like Snowe and Specter who may provide the last one vote to get it over the top."

" Well I regret their decisions. But I think that we've been able to. Garner great support. Throughout the country in the last week we've been engaged in this debate. I think more and more Americans are against it and several Democrats senators who were on the fence are now against it by the way I Twitter. Top ten pork barrel projects. We have gotten incredible response from now from local media people in the area where these earmarks take place in. It's really been a lot of fun do you think it's going to get past this week. I think it probably will I'd like to say otherwise but what's going to happen is it some Democrats are going to vote against the bill but they'll vote for cloture which means. That we move forward with a final passage but I think we fought a good fight and we have -- if we don't stop. This kind of spending which is corrupting and there's corruption we have people former members of congress. In federal prison we have people under indictment that right now one just last week were involved in this one just days before yesterday. This is a corrupting influence. We are giving. Money for thirteen projects to an outfit called PM day. Which was raided and shut down by the FBI they're the ones that got earmarked for different. Organizations. Out of defense spending. Now we're going to find when an outfit got put in. To this bill that are raided and shut down by the FBI that everybody knows you're going to be under on trial. The stock market has dropped 20%. Since the Obama inauguration -- this now fairly be called the Obama bear market. That -- one point two trillion dollar stimulus package. And that to 750 billion dollar -- and that to this 480 billion dollar supplemental add it to another TARP that's coming out. Massive deficits and we are committing generational threat after threat theft. We are laying the debt on future generations of Americans. And we had proposals and 410. Billion dollars first English yet after two. Quarters of economic growth positive economic growth we would've ordered a path to balance budget. What we're doing is phenomenal not only as far as that is concerned. But the transfer. What the free enterprise system does over the government it's it's. The biggest since Franklin Roosevelt and do you think that is contributing to the decline in the market this messages that the Obama administration is sending about its agenda. I think so but I I'm a little nervous about. Allowing short term market activity to drive our conclusions but I don't think there's any doubt track and a friends of mine on Wall Street and people and I know that. This is not a positive signals all of this spending all this -- all of the policies that will. Now in the long term cause us to have any negative GT BGB. By -- day. GDP. Growth. According to the congressional budget -- what do you think. Of treasury DP. What do you think of Treasury Secretary Geithner and how serious is -- that seven weeks into this administration. They still don't have a plan to deal with the banks and the whole lending crisis. I think they started off badly -- message that was not specific. I think today. Are still not specific enough I don't think it made the hard decision that is to let these banks fail. To let General Motors go into bankruptcy in re emerge and we organized with new contracts with labor and others. I don't think they've made the tough decisions some of these banks have to fail. AIG back I believe when we started Bayonne and now I said god let it fail he can't have zombie banks. Like the Japanese. And unfortunately that seems to be the path. Now the way -- staff housing proposal. Which is a somewhat similar to the one -- made during the campaign I hope that we'll have a beneficial effect and I will work as hard as I can help that work. So when you say you'd let these banks that would nationalize them. Well you sell off their her assets and day you. Have unfortunately the shareholders and others -- take a beating but. We had to just keep them alive when and keep pouring billions and billions of taxpayers' dollars into them. When they clearly are not in their situations on improving these are tough choices I don't know if it's -- nationalized and but it certainly is not continue to propping them up with ten user -- of forty or fifty billion dollars of taxpayers' dollars. And their overall value continues to decline so you think that this administration is making a mistake by. Seeming to continue to keep the banks on life support to keep General Motors on life support he would he would let. It I think the best thing that could probably happen to general homeowners in my view. So go under chapter eleven they reorganizing renegotiate there. That the media. The union. Management to let contracts. And come out of it is stronger better leaner and more competitive. Automotive industry."

" Meanwhile unemployment up to eight point 1% last month twelve and a half million Americans. Unemployed some people are beginning to say the stimulus package the 787 billion dollar stimulus package that you just pass. Isn't enough. And you may need to come back for another big --"

" The government spend. Well I hope it's not like this I hope that we can give people tax cuts I hope we can give small businesses incentives. It was very little in the stimulus package for small business subprime generator of jobs in America. I hope that we would not announce we're going to increase taxes on anybody at this time that always has a negative effect. And I would do whatever I can to help with tax cuts would shovel ready ready projects -- a lot of other things. But what we have done is made some fundamental policy change shoes. As regards welfare -- to -- guards -- protectionism. And relations with Mexico. This latest deal as far as Mexican trucking is concerned. So we're not only spending huge amounts of money and a lot of it not. Kind of spending that would have immediate results but we are also having major policy changes that don't deserve to be on me. Money bill."

" There's been quite an argument this week about Rush Limbaugh's role in the Republican Party over the years we went back and look. He's going after you affair bed at one point in 2002 we set a maverick. Is somebody who was in it for himself and at the C packed conference last weekend here's what he had to say about why you show up so often on Sunday two options."

" They invited Senator McCain because he happened to be allowed us. At criticizing his own president and his own party and that's what."

" Back in 2002. You compared Rush Limbaugh that was circus clown and then you apologize to circus clowns it. -- I thought the classic -- line and yet out of that line what do you make of Republican leaders including the head of your party Michael Steele now apologizing to Rush Limbaugh."

" I think it's -- distraction. At that very seriously. Mr. Limbaugh has his audience and his base of support there's money ran around the country and around our party. Important thing right now is what you and I just been talking about it. Job losses. Health care. On affordability. That biggest. Economic crisis since the Great Depression. Well let's all work together with the president whenever we can against him if we think we have to must be loyal opposition let's work together and it's and not get distracted by. Who's the leader of the party and who's not and a the Democrats have made a lot of hand in this and I understand that now let's let's move full."

" Let's turn to foreign policy and there is some breaking news Iran has announced this morning that they have launched a new long range missile. Your reaction."

" It's not surprising and it's not surprising that we continue to have information that they have. The material to make nuclear weapons exactly where they are. He is not totally clear but they're obviously on that trip. This is a great threat -- Israel who they have threatened to pull wipe off the face of the earth. And this is going to be a I think he's serious international crisis before it's. -- that the whole question."

" Of the Iranian. Let me ask you the Obama administration and apparently deceased raised in a private letter from Obama to Russian president yet he got out. This idea that if the Russians on a quid pro quo but if the Russians get Iran to stop its nuclear program that there's no need for an American missile defense system in Eastern Europe."

" Well. If I were the president I would have tried to communicate that in other ways that letter we want to explore every possible option that we can to bring about sensations crisis. The time after time after time. The Iranians have been belligerent and even. And very hostile and their reactions to our efforts to try to get that done. The Russians she would think it's in their interest to have the Iranians not pursue nuclear weapons so far they have not been helpful. I I worry about giving. The Iranians signal that we're not going to take serious action according to their violation. When number of treaties if they continue -- use development. Nuclear weapons and the means to deliver."

" All along those lines secretary of state Clinton met with the Foreign Minister. That is gives me -- on Friday and talked about and we can see it here hitting the reset button on relations between the two countries that idea."

" Turns out that it was the wrong question were rushed overcharged he says. This new administration there obviously trying new approaches. Let's not forget the lessons we learned from the last administration. And the aggression in Georgia a lot of their behavior and in many respects has obviously been. Anti American in many. It's aspects but most importantly not country that's dedicated toward a peaceful resolution of many of these issues he's set the relationship. I think we should try all the time to have a better relationship with him. To appeal to what's in their national interest but it's also been very clear by their behavior. And then put in it ship comments recently there's going to be very long and difficult process. You know we've we've been talking to Walt of this -- and understandably there's some areas I know that you supported the president some that -- not how do you think he's doing so far. I think he's working very hard I'm thinking news continues to have the support of the majority of the American people. I think he's making very serious mistake in this budget which would then transfer from the free enterprise system to the federal government. Many of the fundamentals of our economy which I think is very dangerous consequences. An increasing taxes no matter who it is -- wrong and at this time I do agree -- work with him on defense procurement. On Iraq and number any issue that I can work with the president I work. You ever feel like saying I told us how it all I'm sure that did that would be a pleasant feeling but the point is. -- such -- severe crisis we've got to work together. Much we've got to put away childish thing."

" Finally on the area of childish thing I think that if you that your daughter Megan. Wrote a blog that this gives me as joking me up this week. In which he said that you were presidential campaign has killed. Her social life in fact she writes one dates that do work that she could be his Cindy. What he had to say for yourself senator I have to say yeah beautiful daughter I have very bright prospects for her future both professionally and socially. If you plan a plan -- Now -- I'm proud of All My Children. And from time to time they may do or say it's something that might be slightly that what I would do or say. That's what young people are all about blood just want to say as the father of three daughters I know I speak for many fathers when I say congratulations. I'm slowing down for socialites. The secret sting as senator thank you thanks for coming in today and always you're always welcome please -- boxer thanks for him up next governor Tim --"