Will There Be a U.S. Budget Grand Bargain?

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Oct. 16 (Bloomberg) -- Peter Cook reports on future congressional budget negotiations in the wake of the senate deal to reopen the U.S. government and raise the debt ceiling. He speaks on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

The appointed hour.

So many moving parts happening here.

The big question is, if we can get these votes pass today, both in the senate and house, then we are on to what would appear to be some sort of discussion about spending in general.

Is anyone feel that could be a substantive, nonpartisan conversation?

Exit nonpartisan is highly unlikely in this environment.

-- nonpartisan is highly unlikely in this environment.

That there are some who have been talking about doing it and now they have the formal procedure to get the house and financial negotiators in the same room talking about these big issues.

But not a lot of expectation they will produce a tangible result.

And unlike the supercommittee or previous negotiations, there will be no stake at the end of the conversation.

If they don't reach a deal, there is no additional sequestration.

The enticement for the both sides is they get to talk about issues they have been talking past each other with some time -- for some time.

For the first time in these negotiations to mother are both democrats and republicans who share the same view, that sechrist ration is a very bad way -- that sequestration is a very bad way to try to trim the government.

That has offered a some opportunity to try to get a broader deal.

Paul ryan and patty murray will lead the negotiations.

And even paul ryan this week has been downplaying the chances for anything substantial.

For those who were just on the floor talking, who believe this is a eager opportunity, that would be one area where we could see a bigger grand bargain type of agreement that everyone has been talking about, but not doing much to get to.

As mike mckee pointed out just a full you moments ago, sequestration it scheduled -- is scheduled to begin in january.

Can you give us the magnitude of what this would do to spending?

It with ice about $20 million off of spending next year.

-- it would slice about $20 million off of spending next year.

Democrats alike that and many republicans do not like it either.

At the heart of one thing that democrats really pushed for was the notion of flexibility.

Even if the tougher number kicks in next year, they want flexibility for the agencies to be able to pick and choose where the cuts come from, instead of across the board.

The hope is perhaps a trade.

Sequestration gets ended and there may be the same kind of savings in entitlement programs and discretionary spending.

That is the ideal for both worlds, but it is not clear we will get there.

A lot of democratic and republican lawmakers and aides i have spoken to today are not very hopeful.

Given the climate right now, it is a long shot.

It certainly is.

Mike mckee rejoins us.

You just finished her daily

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change