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In the oval office right now, leading on the sensitive issue of these forced budget cuts. >> one of the things i thought was very hopeful and interesting about what mitt romney said was his acknowledgement that the sequester is bad news. this is not our first step toward a rational deficit reduction program. it's bad news. and if we could at least al agree on that, we could get away from these cuts that are landing on the defense budget. $47 billion is going to come out the defense budget between now and the end of the fiscal year. even as the united states is winding down two wars. this is no...

Would they rather put hundreds of thousands of jobs and our entire economy at risk just to protect a few special interest tax loophole that is benefit only the healthiest americans and biggest corporations? that's the choice. >> while the cuts would put the gvt government on a path towards a debt reduction, they are inkrimtat or a lot like a meat clever. it would force the f.a.a. to regularly furlough 4,000 workers a day which accounts for more than 10% of its entire staff. 125,000 families would immediately lose rental assistance putting them at risk of homelessness, and the military's health...

They want to play hardball on this, and it could be damaging to their base. >> it could be very damaging. not just to their base, but to the country. especially if it's done in the way that sequestration sort of forces it to be done. no question, as i said before, that the defense budget is really bloated and needs to be taken down, and there's a huge disconnect between what the united states needs to do in the world and the defense budget, which seems to lag two or three decades behind where it should be. so there's a big job to do there. the sequestration and, again, if the republicans force...

If they're so into cutting the deficit and they think spend issing the problem, show it off. let's see what you got. they don't want to do it. >> what i don't understand about this is why if you believe that ultimately they're going to have to cave, why don't we just let them cave? why do we need to create all of these other sort of -- as i said wack-a-do arrangements so this can happen? >> it's all leverage, right? if the sequester, that deal is not great for the republicans or that battle is not great for them because that disproportionately hurts republican industries, which is to say the d...