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Care, which we also know majority of americans don't necessarily favor that, how can he possibly give away his most valuable negotiating chip which is to say i'm not going to negotiate with you over the, you know, raising of the debt ceiling, more the shutting down of the government because it's not the way it's ever been done before? that's not the way we do things. >> yeah. i mean, and it's -- maybe it makes sense in some sort of political back room where people are afraid of being out flanked by tea party challengers. but in the real world, no. this kind of playing politics with the debt ce...

And having the room to negotiate, did the president leave himself no room to do that by giving away too much up front? or do you think the intent of this budget is, at this point, regarding these things, the buck has stopped there, there will be no negotiating on those issues? >> well, i think that's probably right. we -- we had a hearing the other day, in the budget committee, with the director of the office of management and budget, and basically he said, you know, the reason we put this change in for cpi was because of speaker boehner and leader mcconnell, that they were the two who demande...

One thing before i go, i'll just tell you, you guys, i think the debt limit is really going to play into this because the republicans see that as really their only negotiating chip they have here. if president obama wants to avoid a debt limit fight, he is going to have to give a lot on entitlements, and that's where i think the fight is going to become -- the tax issue is obviously still there, but they want to see in exchange for higher tax rates, some sort of entitlement cuts, and they'll try to use the debt limit as that bargaining chip. what does that mean for the economy? this is long aw...

Behind senator reid's proposal. he too has reverses himself. >> this could be another negotiating chip in the fiscal cliff. harry reid's threat. it could be something to try to get more tax increases out of the republicans. megyn: interesting. this is a huge deal back in '06. you haven't heard as much about it now that the shoe is on the other foot. the democrats find themselves in the minority they play rue the day harry reid pushed this through. new questions how to tell if someone is too high to drive. now that marijuana is legal for recreational use in two states, authorities are trying to...

The israelis are making, a very real threat. but i think it's also a negotiating chip, a marker, the kind of thing that they might want to talk about if negotiates do resume. >> so, john, reaction from citizens on both sides? what's that been like? >> well, on the israeli side, even from people who represent the settler community, some half a million israelis who live within eastern jerusalem and the west bank. of course there's delighted that new settlements are coming. but they are frankly surprised by the timing, one saying that, well, we like the new settlements, but the timing seems to be...