i'll ask about red hot democrats. stay here and hear how it plays out. i'm wolf blitzer here in "the situation room." we've been expecting the house to vote on raising the debt limit. but it has not happened yet. the debt deadline is looming larger than ever. the deal would raise the debt limit $900 billion in the short term and green light spending cuts of roughly the same amount over ten years. offset dollar for dollar by more spending cuts. there's a lot of huge ifs involved in making all of that happen. let's go to capitol hill. kate baldwin is standing by. what are we toll about when it will take place? of. >> the timing is very fluid, wolf. the question is, will this compromise bill pass the house? speaker john boehner in a press conference wouldn't answer the question when i asked him if he had enough votes. but the paul ryan seemed pretty confident this afternoon. listen to him. >> some have various concerns, whether it's going to prevail. i think we have a majority of republicans. >> it seems like there's something for everyone to dislike, if you will. there's also some concern amongst a groups of house republicans that the cuts to defense spending cut too deep. at the same time, on the other side, they seem to be sprobs of their own, if you will. joe biden in a meeting with democrats to try to rally support. still refusing to throw their support behind this bill. listen here to vice president joe biden. >> my sense is they expressed all their frustration, which i would be frustrated as well. >> i pro-thought it was a good meeting and i feel confident that this will pass. >> the top leadership aid, it's not if there will be a vote in the house, it's when there will be the vote in the house. it's still a possibility that they could have a deficit this evening. but the vote in the senate could be move into tomorrow, wolf. >> but the real cliffhanger will be the house of representatives. the senate looks like they have more than enough votes to get it passed in the senate. all right, kate. thanks very much. stand by over there. keep checking back with you. president obama says the debt deal isn't exactly what he wanted. but he argues it's the best shot right now at preventing a possible financial catastrophe. eric cantor, the majority leader in the house, just a little while ago, he said this. >> from day one, this administration has been insisting that have we raise taxes to sofl this problem. i think it's important that there are no tax hikes in this package. >> he has a point, no tax hikes in this facemaskage. >> well, no. this proposal has a committee to be set up. six members from the republican and democratic party, all from congress, who will engage in a process by thanksgiving to put forward a significant deficit plan. they're going to consider raising revenues from the wealthiest americans, closing loopholes as well as looking at entitlement reform. the only way we get significant deficit reduction is to ask the rich to pay their fair share. >> there's no tax increases, none of that. >> there's four buckets to deficit reform. there's domestic spending, there's defense spending. there's revenues then entitlement reform. in the package that's been voted on tonight, we dealt with two of the four. there's cuts in defense spending and cuts in domestic spending. the hardest issues are entitlement reform and tax reform. they have to reform something by thanksgiving or there's an enforcement mechanism that goes into place. we're vft confident this that committee will consider tax reform and will put together a package that includes revenues. >> six democrats, six republican, there's nothing requiring them to raise taxes. >> if they're going to meet the threshold in this deal, they're going to have to include revenues in that. at the end of 2012, the bush tax cuts will expire. the president said he will not extend any tax cuts to the wealthiest. so we're going to change the tax code in 2011 or it will be forced upon us in 2012. >> you're saying by 2012-2013 there will be an increase in taxes? >> for the wealthiest americans. for the 98% that makeless than $250,000, they have tax cuts under this president and we'll further cut their taxes. >> that's assuming the president is re-elected, though? >> i do assume that, wolf. >> you're getting a lot of grief from liberal democrats including the nobel prize-winning economist for "the new york times." he wrote this in a column entitled, "the president sur anne arundelers." it will probably make america's long-run deficit problem worse, not better. and most important, by demonstrating that raw extortion works and carries no political cost, it will take america a long way down the road to banana republic status. that's from paul kruegman. >> i think he's 100% wrong here. let's be very clear with what we are able to achieve in this deal. the house republicans were insisting, they drew a line in the side that they would only approve a deal that would require us to raise this same debate during the holidays. it's terrible for the economy you saw what happened to the markets last week. it would have been upwards of potentially $1 trillion cuts in social security and medicare. >> they will have fast track authority to ensure it could be voted on in the house and senate. items of interest that both parties carry about. >> what is this agreement? assuming they do, what does this agreement do to actually create jobs. >> the debt limit, the fear of default has depressed confidence in the economy. it helps the economy there. now that we have this behind us, it's time for democrats and democrats to come together. >> is speaker pelosi onboard with you? >> she's talking to her caucus and she's going to make her decision about how she approaches this bill. we heard from many, many democrats who figure it's the right thing to do. it's not the perfect deal, but we have divided government. >> i've heard from a lot of democrats and i believe the republicans deliver the votes they promised they would deliver. >> thanks for coming in. >> thank you. >> they started the debate just a few moments ago on the house floor. there's one hour scheduled of debate on raising the nation's debt ceiling. and after that, we expect the roll call to take place. it could take place in an hour or so. the actual roll call. i suspect they're not going to have one unless john boehner is convinced he has the votes. once it passes, it will then go to the senate. we'll see if the senate will vote tonight or wait till tomorrow morning. the white house says the president is anxious to sign this legislation into law and move on. the americans wrap their brains around the enormous amounts of money at stake in congress right now. what does the deficit reduction look like? if you lined up $2.1 trillion, $1 bill, they would wrap around the earth's equator more than 8,172 times. a lot of cash. if you were to do that. even if a debt deal is approved today or tomorrow, a runaway federal spending is only just beginning. it's a trigger that would shake the battle ahead and lead to very painful cuts. i'll talk to a republican congresswoman who's breaking with tea party members on this debt deal. should americans trust any member of congress after this drawnout game of chicken? >> let's get to jack cafferty. >> the president might not be so lucky. critics on the left and the right slamming president obama for how he's handled the debt ceiling crisis. an article in "the daily beast" called obama gives it all away suggests this is the lowest moment of president obama's presiden presidency. it claims he's ushering in a conservative era by simply handing over the keys to the republicans. the debt deal has also complicated the president's liberal support, you know, the people he'll be relying on to vote him into office for a second term. a lot of people in his own base thinks president obama has given up on one issue after another and ditched his supposed priorities. as one democratic senator told maureen dowd yesterday in ""the new york times," we're watching obama turn into jimmy carter right before our eyes. in "the wall street journal," peggy noonan writes that president obama is is a loser and this is an america where nobody loves a loser. of course, she's right about that. she points out, even at their lowest points, president clinton and george w. bush still had supporters who loved them, but not so for president obama. it's no surprise that the president's poll numbers are headed down. president obama has hit an all-time low approval rating of just 40%. how has the debt ceiling crisis altered your perception of proemt? go to the blog and unburden yourselves. wolf? >> yep. thanks very much, jack. we'll get back to you. we're keeping a very close watch on the u.s. capitol right now as the house of representatives nears a vote on the deal to raise the debt limit. we'll bring you every step of the way. if the legislation passes it sets the stage for another heated debate later this year and the possibility of automatic spending cuts if lawmakers can't see eye to eye. let's go to lisa sylvester. she's over at the data wall picking up this part of the story. >> we're talking about $1 trillion in cuts, but then on top of that, there lab bipartisan committee that will be formed. you could call it a super committee, if you will. there's some question and debate about how successful they will be and tackling the revenue side of it. they'll be looking at defense spending and nondefense spending. some of the potential cuts really we're talking across the board in terms of the government. transportation, education, and energy. these are just a few of the examples that this bipartisan committee will be taking a look at. we go to something called the trigger. we will be hearing a lot about this. you're talking automatic cuts across the board. 50% from defense, 50% from nondefense. things like social security, entitlement programs, low income spending, those things would not be cut. pla particularly when you're talking about defense, we're seeing pushback. in the defense budget, the first wave of cuts would cut $350 billion. that's just the first wave. if we get to the trigger, we're talking about an additional $550 billion in defense spending. and there is some concern that this will jeopardize the defense mugt. >> that's a 15% to 20% cut in planned pentagon spending over the course of that time. and we have to see what the details turn out to be what is got. any way you slice it, it's a pretty big cut and will make it very difficult the job of the american military. >> the white house spokesman says that is why this trigger is the last resoorrt. he said this is a trigger no one wants to pull. wolf? >> lisa, thank you. it's been a wild day for the stock market. prices rallieded this morning in anticipation of a debt deal, but a weak manufacturing report threw some cold water on a lot of that initial optimism. the markets could take a dramatic turn for the worst, though, if -- and it's still a huge if -- if america's credit rating is eventually downgraded from its current aaa status. let's bring in erin burnett. she's working this part of the story for us. this debt deal, assuming it passes doesn't necessarily guarantee america's aaa credit rating will remain aaa. >> that's right, wolf. what's amazing, we were talking about this. these numbers we're hearing in tu terms of the deal aren't anywhere what they said needed for a downgraded. they needed $4 trillion in cuts. even at the highest level here, the $2.4 trillion on the table won't get us there. so this puts the rating agencies in a very tough spot. they've put us on watch for a downgrade. so it would seem that the right thing for them to do would be to go ahead and do the downgrade. the real question is, have the financial markets already assumed there's going to be a downgrade and priced it in? >> what would it mean practically speaking if the u.s. went from a aaa let's say to a aa? >> practically speaking, and bill gross from pimco, one of the biggest bond investors in the nation, very influential. before the fed does anything, they talk to bill gross. he thinks the increase in interest rates could be between a quarter of a percent and half a percent. and that is the borrowing cost for the u.s. government and also, wolf, the borrowing cost for consumers to varying degrees it would affect mortgages, credit cards, all toe loans, all of those to varying degrees. over time that does add up. it will cost us more to borrow every time we go to the bank. that's something important to consider. but i will say this. if you look at interest rates, since the late 1970s, and a lot of people remember buying money in the '80s, we're now at 2 3/4% over ten years. the u.s. is still the best place to put your money out there in the world compared to anywhere el. >> that's an excellent point. despite the $1 trillion spending cut that's projected as part of this deal over the next ten year, you know, given the amount of money involved, does it really move the needle all that will much? >> no, wolf, that's the scary thing. it really doesn't. when you're talking about having to cut 10%, 20%, the amount if you're going to go purely through cutting spending it's going to be draconian to deal with the problem we have with the debt and deficits in this country. some combination of an increase in revenue and a cut in spending seems to be the ideal way. i know it's become so political to say the words increase in revenue, that by definition has to mean an increase in tax rates. but it doesn't have to mean that. about half of our deficit will go away just been aincreased in tax receipts at the current rate. that's something to keep in mind. we can get revenues to go up, just with economic growth, not necessarily with altering tax rates themselves. >> unfortunately it doesn't look like that economic growth is anywhere near in the next, at least in the short term. erin, thanks very much. >> thanks, wolf. >> let's go back to capitol hill. cattle bald rin -- kate baldwin standing by. >> we're now told by a top republican leadership aide the house will vote before 7:00 tonight. this is moving right along, which they seem pretty confident that they wouldn't put this bill on the floor. according to a top leadership in the house before 7:00 there. and another note, something you and i were just talking about, golf, the issue of where nancy pelosi, the top democrat in the house, where she has stood in all this, she's refused to take a position on this debt deal since it was announced. she is now going to support the bill. she will vote question. so that is also a very significant move on that side, wolf. >> thank very much. we'll not go too far away. you'll see the vote in the house of representatives. it's going to be close. you'll see it live here in "the situation room." cnn's richard quest will show us how the world sees america's debt debacle. 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[ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. >> we're keeping a very close watch on what's going on the floor right now. a senate vote is likely to happen tomorrow. many lawmakers have been facing enormous pressure to hold the line on tacks. let's go to congresswoman renee elmers of north carolina. congresswoman, thanks very much for coming in. >> thank you. good to be with you, wolf. >> i am in favor of this bill. this bill comes with spending cuts and no fax increases and the chance for a balanced budget amendment. it doesn't answer every question. i wish it were more cuts. we're going to be able to put this in place for a foundation for a future. >>. >> are you a member of the tea party? >> i had tea party support. i wouldn't be here if not for the tea party and my principles go right in line with the tea party. >> michele bachmann who is a leader of the tea party caucus, i don't know if you're a member of the tea party caucus. >> yeah. >> you are? okay, she says this. throughout this process, the president has failed to lead and failed to provide a plan. the deal, in quotes, he announced spends too much and doesn't cut enough. this isn't the deal the american people preferred either. mr. president, someone has to say no, i will. why is she wrong? >> well, she's not wrong. she's pointed out many of the same principles that we also believe in. we're going to continue to cut spending. this is actually a beginning. many of us have had to make that compromise and say okay, if we raise that debt ceiling to pay for all that spending that's already taken place, this is to take care of the bills that have already been spent. the consequences of a financial disaster are just too great and we have to be responsible. the president hasn't led. >> you just made the case why she's wrong. >> she's voting no, i'm voting yes. we have to vote our conscious and what we believe is right for the american people. i understand where she's coming from and i respect her vote. i hope she respects mine as well. >> youing a knowledge she's wrong. a second ago, you said you didn't think she was wrong, but now you're saying she is wrong? >> well, what i'm saying is i understand where she's coming from as i am, too. in comparison, i hate to look at one person i believe in ronald reagan's 11th commandment, thou shall not speak unfavorably of another republican. she's going to take her approach and i'm going to take mine. we're going to explain what they've done. we get it, it's just a different perspective. >> you believe your constituents want you to deal in favor of this vote? if there's no agreement on this so-called super committee, the 12 members that are supposed to come up with long-term entitlement reform, tax reform and all of that. >> constituents want us to act, for us to take responsibility for all the spending that's taking place in washington. we have a spending problem, we don't have a revenue problem. you're right. if the committee cannot come up with an answer, if the house and the senate cannot agree on something, there will be across the board cuts put in place. but that's not the end game. there's more national security and many programs that the democrats favor, and that's why we feel this is more of a mechanism to hold the feet to the fire so we do do our job. >> does this create any jobs? >> i believe it will. we're laying a foundation for the future. we have to put certainty back in the private sector. the solution lies in the private sector with putting it back in the market. i believe this will stay in place. >> one democratic member of congress is calling the debt deal and quoting him now, a sugar coated satan sandwich. the safety of onstar is now available for your car. ♪ [ recorded voice ] onstar. we're looking for city hall. i'm sending directions to your car. 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