The Good, Bad and Ugly from Debt Deal

This is a rush transcript from "The Five," August 1, 2011. This copy may not be in its final form and may be updated.

ERIC BOLLING, CO-HOST: All right. The D.C. debt deal dominating the news. And rightly so. The country is or was on the verge.

Here is the deal -- $2.1 trillion in cuts, with the ceiling rise of $2.1 trillion in tranches. Maybe two, maybe three, based on a bipartisan 12- member congressional panel -- super panel if you will -- with triggers.

Here's the good news. The good news is the spending cut by $2.1 trillion. The bad news, we're still overspending by $2.1 trillion.

The good news is no news taxes in the deal. The bad news is the Democrats are still trying to sneak taxes into the deal. Bottom line: Tea Party, game-changers. Thank you, Tea Party. Take the win and live to play another day.

And in honor of the Tea Party, we'll say thank you for a big, big old bag of tea.



BOLLING: Just a big bag of tea.

GUILFOYLE: Just for Bob Beckel.

BOLLING: A game changer, my friend. Look at that thing. Drop a Tea Party. They changed the rhetoric. They changed the dialogue.

BOB BECKEL, CO-HOST: I'll give you that. I mean, they did it. I give them credit for bringing this thing up, which is going to be in my mind a horribly cruel, cruel outcome of this. We had to do it. I understand why some liberals will have to vote for it so we don't go over the ledge that you and the Tea Party want to take us.

But I'll tell you something. The losers are poor kids and winners are millionaires and billionaires. Congratulations, Tea Party.

BOLLING: Let's talk about that again. We need to point out -- Greg, we talked about this in the green room. We are actually still raising the debt ceiling because we are going deeper and deeper into debt. Just not $3 trillion more deeper into debt.

GREG GUTFELD, CO-HOST: Exactly. You are increasing the spending by 70 percent over a decade. This is like being on a diet and taking the olive of the meat lover's pizza and Bob is complaining about the olive. This is ridiculous.

Here is the deal. A great line from the movie "The Usual Suspects." The greatest trick the devil ever did was convincing you that he didn't exist. That's what the Dems have done. They convinced people that actually increasing is spending cuts. It's an amazing trick.

GUILFOYLE: Are you saying they are tricky?

GUTFELD: Yes, I am.

GUILFOYLE: Ok. Just want to be clear.

GUTFELD: Kimberly, nothing goes over your head.

GUILFOYLE: I'm telling you.

TANTAROS: Speaking of the devil, we need a devil sandwich, because this is what the Democrats said about the plan. You can eat the sandwich.


BOLLING: Sugarcoated devil Satan sandwich, I believe.

BECKEL: If I could ask to pull up a graph. I want to show my different Eric, who has been complaining about Barack Obama and how much he contributes to the $14.55 trillion. All right, if you look at who contributed to it by presidents, before Ronald Reagan it was $1 trillion.

Reagan, $1.9 trillion. Bush, the elder, $ $1.5 trillion. Clinton, $1.4 trillion. George W. Bush, $6.2 trillion. And Barack Obama, $2.4 trillion. That adds up to your $14.55 trillion.

BOLLING: That's wrong. I don't know where you got that.

BECKEL: Does it ad up to $14.5 trillion?

BOLLING: I tell you, unequivocally, when Mr. Obama took office in January 20th of 2009, the national debt was $10.6 trillion. It's now $14.5 trillion. That is almost $4 trillion.

BECKEL: Excuse me.

BOLLING: Let me finish. Allow me.

BECKEL: Sorry.

BOLLING: That is $4 trillion in two-and-a-half years. George W. Bush was eight-year term. If you want to extrapolate Obama's debt -- adding to the debt, that comes to about $12 trillion over eight years, doubling the debt from when he took over.

That number is wrong.

BECKEL: Not only are your politics terrible and your economics, but you can't add. That is something. I need --

BOLLING: I can add perfectly. That number is wrong.

GUILFOYLE: Tea Party math, right?

BECKEL: Exactly right.

GUILFOYLE: You're still upset about the Tea Party. But you know what --

BECKEL: Tea terrorists.

GUILFOYLE: I know that you say that. That's wrong. They are Americans who want the best for the country.

But you know what's interesting -- (INAUDIBLE) had an article that he wrote on Sunday where he quotes Maria Cardona, who is Democratic strategist. Do you know how she describes it? And you might agree with this. This 87 little tyrants have no clear understanding the fall-out of blocking a debt deal because, quote, "they never covered and have no interest in compromising and have no clue about the government or how government really works."

BOLLING: We may have lost your mike.

Andrea, let's talk about this. We have House vote on the rule which means they're ready to proceed for the vote on this debt deal. What do you think of the debt deal?

We're going to work on that mike, Kim.

TANTAROS: I don't think it's ideal. I'm not in love with it. But what I do love is that the liberals hate it so much. And they are the ones that have been completely embarrassed and rendered irrelevant because of this.

I mean, think about it. The reason why the Tea Party and conservatives were so successful is because the left disappear and the Democrats don't care about them anymore. I will say this, though. Even though the plan is all right, take the deal.

I'm very skeptical about this committee, this super committee. We already had a super committee. And, frankly, I feel like Congress is already an elected committee that we pay to do the job. So, I'm very skeptical about who's going to be on and what cuts they're actually going to be able to be made.

BECKEL: You know that committee, though, it is a difference. The commission they appointed by law which originally was supposed to report to the Congress, they had to do an up and down vote, same thing. Now, just before they sat down to meet, they took away that automatic.

This is a committee of the Congress, a select committee of the Congress. They have those Watergate was select committee of the Congress.

This is going to be an important committee. And if they come up with something -- if, and that's a big if -- then really it's going to be for the first time since base loading (ph), an up or down vote, no amendments, no filibuster.

BOLLING: They have to come up with something. If they don't, these triggers are in place. By the way, the triggers -- one of them is on, one of them that would hurt the Republicans, at least, they feel, 50 percent of the cut that has to happen -- if you are going to go ahead and raise the debt ceiling, 50 percent of the cut that has to happen has to come from the military, defense spending. That's tough medicine.

TANTAROS: That's absolutely right. And the stimulus plan bloated a lot of these domestic discretionary spending which would upset the Democrats. So, look, I think that the domestic spending is the one that's going to hit the viewers at home the quickest. The defense spending probably is not as much. But I think that's going to be a powerful leveraging tool for the Democrats to push for tax increases. They're going to say, what do you want, Republicans?

BECKEL: It's going to be --

TANTAROS: Do you want defense cuts or do you want tax increases?

GUTFELD: It always comes down to this, you know, this polarization, defense, versus domestic. The left always prefers to increase dependence through entitlements. That's why they want domestic spending, whereas everybody else in America wants to increase the defense, because that's how you preserve independence. It's about independence versus dependence.

BECKEL: Everybody else in America?

GUTFELD: Everybody else. Except for you, Bob.

BECKEL: No, no, no. I think there's a lot of people out there who get Social Security and Medicare that might think that there are an important thing. But listen, the one thing that is going to happen, this debt committee, if you want to call it that, has got to report revenue increases, taxes have got go up, or what we're going to do, I hope is when the Republicans who have to put a bill forward to keep the Bush tax cuts going, Obama will veto it and --

BOLLING: What do you think of this committee?


GUILFOYLE: Bob, my mike is back up. I think Bob tried to cut it off.

We got it back.

TANTAROS: Bob, no pulling out Kimberly's microphone.

GUILFOYLE: Exactly. I love the sabotage. It's very good.

But, look, this isn't pro-growth economy, right? We can all agree about this. This is a problem. So, we have to say, this is a president that's actually moving the country forward. Is he someone who came up with leadership and a plan, an idea here? Yet you criticize, Bob, right, the Tea Party and other people that actually were the ones driving this debate, that actually were the ones that were the game-changer in mid-term election and they were the party that defined this debate and the cuts that needed to take place.

BECKEL: And I have said, the tea terrorists drove this debate, there's no question about it. And he -- but when you say that's leadership, I consider that terrible stuff that they have come up with. You say -- so you say we should -- should I sit back and applaud because they brought this outrageously disgraceful, sickening bill up?

BOLLING: No. What's outrageously disgraceful? We're still going to spend $3.6 or $3.8 trillion? What's bad about the Tea Party saying, OK, stop. Enough is enough. Don't spend $4 trillion. You don't need to spend that.

BECKEL: They're taking money out of programs that matter. They're taking it out of education. They're out of the infrastructure. They're taking it out of women, infants and children. And the WIC program --


GUTFELD: You're still spending 70 percent more money.

BECKEL: So, why don't you raise some taxes on people who are wealthy?

GUTFELD: Because it doesn't work, Bob.

BECKEL: Oh, bull.

GUTFELD: It doesn't work. Here's the problem.

BECKEL: Uh, that was close.

GUTFELD: In 2008, everybody elected a president based on hope and change.


GUTFELD: It wasn't a principle. It was a feel good euphemism. And now, you have the Tea Party based on a singular principle which is smaller government. They're not asking for much. They're saying stop --

GUILFOYLE: They're not wild, right?

GUTFELD: -- spending. You can increase spending but just cut it back a little. And Obama does not have a reaction to that. He doesn't know how to respond because he ran on a euphemism. He ran on a bumper sticker.

BECKEL: Tea terrorists ran on cruelty.


TANTAROS: Bob, even before we had this debate, Moody's and the credit agencies and they are still even saying they might downgrade us. And that's --


BOLLING: All right.

GUTFELD: It's not resolving the debt burden.

BOLLING: We're going to leave it there. But before we go, just take a look at this. Thank you, Tea Party. Thank the Tea Party. Also thank Mr. Obama, because, Mr. Obama, you are the reason the Tea Party exists today.

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