Herman Cain predicts 'drop dead' financial crisis

This is a rush transcript from "Your World," October 17, 2013. This copy may not be in its final form and may be updated.

STUART VARNEY, GUEST HOST: Now, after the mess, Congress is taking a rest?

House lawmakers heading home for about a week. Senate lawmakers taking nearly the rest of the month off.

Herman Cain says, that's just insane.

You know, Herman, I don't think they're listening to the public outrage and anger, are they?

HERMAN CAIN, CEO, THE NEW VOICE: They are not listening.

A 12-year-old boy responded to his dad. When his dad asked him, what does D.C. stand for in Washington, D.C., the 12-year-old boy says, doesn't care. And this is another example that Washington doesn't care. They're demonstrating it, number one, by they didn't really solve the problem.

They pushed it out or they put it on pause, as Steve Doocy says, for another three, three-and-a-half months. And, like you, Stuart, I don't like to make predictions, but I'm going to make one. And I hope I'm wrong. We will be at a drop-dead crisis situation again in three months, and then again three months after that. I believe that the...


CAIN: Yes.


VARNEY: The level of anger and frustration, I mean, I can feel it.

CAIN: Yes.

VARNEY: In the news business, I can feel it coming at me, coming, feel it, at Washington, D.C.

CAIN: Yes.

VARNEY: You really think they're going to go down this road time and time and time again, with an election looming in November 2014? Really?

CAIN: Yes. Unfortunately, Stuart, I do.

And -- and here's why. Remember, the president has the bully pulpit, and they -- the president and the Democrats, they believe that they won in the court of public opinion because the Republicans were blamed. So, I believe that the president and Harry Reid and the Democrats are going to play this game and this tune one more time, because, in the end, the deal that they call it, the Republicans got absolutely nothing new out of this.

The Democrats, the president got everything that they want. I believe they're going to play this game all the way up to the elections of November 2014. I hope I'm wrong.


CAIN: But this is what I predict.

VARNEY: I'm really going to upset you now, Herman...


VARNEY: ... because I'm going to show you a little sound bite from Jay Carney, talking about the next debt deal. Sounds to me like they're looking for tax increases. Just listen to this.


JAY CARNEY, WHITE HOUSE PRESS SECRETARY: The president has insisted that, in these budget negotiations that he has been calling for all year, everything has to be on the table, and that will be his position going forward.


VARNEY: Well, the question he was asked was, would the White House put extra revenue on the table? All things have to be considered, says Mr. Carney. That implies tax hikes may be coming down the pike. I know you're upset. What do you really think?


CAIN: If you thought I'm raising Cain now, you wait until they propose raising taxes.

We already have a big tax increase that the public is trying to absorb now. This economy is anemic, as you very well know because you report on it all of the time, and raising taxes is simply going to slow this economy down even more. And with the cost of ObamaCare being forced on American businesses and families, it's going to devastate this economy. I know that they say everything should be on the table, but they -- I also believe that they're going to push for tax increases because they believe that they have the court of public opinion on their side because of the so-called poll that says that they're blaming the Republicans.

VARNEY: Herman, I think you're showing admirable restraint.


VARNEY: Thank you very much indeed for being with us this afternoon.


CAIN: Thanks, Stuart. I hope I'm wrong about my prediction.

VARNEY: We got it.

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