President Barack Obama to George Stephanopoulos of ABC News on Republicans who say they need to see him propose even deeper cuts to Medicare and Social Security before considering a Grand Bargain (full transcript):



Well– I understand. Which is why, at some point, I think I take myself out of this. Right now, what I’m trying to do is create an atmosphere where Democrats and Republicans can go ahead, get together, and try to get something done. And, y– you know– I think what’s important to recognize is that– we’ve already cut– $2.5– $2.7 trillion out of the deficit. If the sequester stays in, you’ve got over $3.5 trillion of deficit reduction already. And, so, we don’t have an immediate crisis in terms of debt. In fact, for the next ten years, it’s gonna be in a sustainable place. The question is, can we do it smarter, can we do it better? And– you know, what I’m saying to them is I am prepared to do some tough stuff. Neither side’s gonna get 100%. That’s what the American people are lookin’ for. That’s what’s gonna be good for jobs. That’s what’s gonna be good for growth. But ultimately, it may be that– the differences are just– too wide. It may be that ideologically, if their position is, “We can’t do any revenue,” or, “We can only do revenue if we gut Medicare or gut Social Security or gut Medicaid,” if that’s the position, then we’re probably not gonna be able to get a deal.

That won’t– that won’t create a crisis. It just means that we will have missed an opportunity. I think that opportunity is there and I’m gonna– make sure that they know that I’m prepared to– work with them. But ultimately, it may be better if some Democratic and Republican Senators work together.

And if a deal can't be struck?If Republicans want a Grand Bargain, President Obama has put a deal on the table, but it sounds like there's a limit to the amount of time he's willing to spend spinning his wheels trying to convince them to accept it. He also accepted the possibility that the sequester will remain in effect. Clearly, he would prefer a Grand Bargain to the sequester, but his comments indicate that he believes the sequester is preferable to a package that cut exclusively from social insurance programs.

Moreover, unlike previous fiscal debates, President Obama doesn't see this one as a looming crisis. That's notable, given that Republicans are talking about trying to turn the debt limit back into a crisis towards the middle of the year. If they do, he won't be playing ball. If they want a Grand Bargain, the time for them to embrace it is now. If not, then it appears the president is prepared to accept no for answer.