updated 10/17/2013 3:43:23 PM ET 2013-10-17T19:43:23

THE ED SHOW
October 16, 2013

Guest: Steny Hoyer, Ben Cardin, Joan Walsh, Goldie Taylor, Debbie
Wasserman Schultz

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH) HOUSE SPEAKER OF REPRESENTATIVES: No. No.
No. Now it`s time for Republicans to unite behind other crucial goals.

UNIDENTIFIED MALE: I personally am calling to impeach the President
of the United States.

UNIDENTIFIED MALE: The repeal of ObamaCare is a matter of life and
death.

UNIDENTIFIED MALE: You think you have a lot of voices in your head?

UNIDENTIFIED MALE: Glad (ph) because I do ...

UNIDENTIFIED MALE: Although you do have a lot.

UNIDENTIFIED MALE: I wish to God that somebody would do something to
block up the voices in my head for five minutes.

SEN. TED CRUZ, R-TEXAS: Mike Lee, I am your father.

LAURA INGRAHAM, FOX NEWS CONTRIBUTOR: A lot of conservatives, myself
included in spirit loved the kind of fight in Ted Cruz.

UNIDENTIFIED FEMALE: The unusual power of Ted Cruz .

CRUZ: I think we have seen a remarkable thing happen.

UNIDENTIFIED MALE: What are you doing here? You`re party dote (ph),
man, again.

SEN. HARRY REID (D-NV) SENATE MAJORITY LEADER: I`m optimistic that
the spirit of compromise has taken route in the Senate over the last few
days will endure.

UNIDENTIFIED MALE: I`m going to use a highly technical term, that`s
boloney.

(END VIDEO CLIP)

ED SCHULTZ, MSNBC HOST: You mean we`re not going to have a default?
We`re actually going to pay our bills? The Republicans actually have a
pulse and there might even be some kind of a conscience? I`m glad I`m
wrong. This is a real good subject to be wrong on because I thought we
were headed for default.

So if the Republicans are going out for a couple of cool ones tonight,
they should probably go on over to the recovery room because there are no
political winners in the Republican circle. It`s a sad commentary. It`s
unfortunate that we have shown the world that it can get this bad in
America. This was an unnecessary exercise from start to finish.

And so, the Breaking News tonight is folks is that the Senate has
reached the deal. That`s right, to fund the government through January
15th and raise the debt limit to February 7th. So we get to do this all
over again because we know the Republicans are going to change. The
argument strengthens income disagreement strengthens income verification
requirements for ObamaCare. This is not a real big deal, OK? Fine.
What`s wrong with that? No big loss there at all, politically.

It also creates a negotiating committee charged with finding a long-
term budget solution. That`s where it`s going to get really, really
interesting. The Democrats have wanted this committee for a long, long
time, they wanted to go to conference, the Republicans have said, "No". So
that is yet another victory for the Democrats and the American workers.
The positive news tonight folks -- it`s not disagreement. OK. It is but
600 -- 800,000 workers tonight are saying, "Well, I guess I`m going to work
tomorrow." And this has really been completely unnecessary across the
board.

Now, the Senate is expected to vote on the bill between right now and
8:00 tonight and they`re expected to pass this measure. No problem. And
if it happens in this hour, we`ll bring you the results live. The House is
expected to take a vote tonight where it also is expected to pass, but
you`ll never know. It will probably will which is the good news and Senate
Republicans indicated that they will not delay a vote.

And here he comes with his big Texas head on looking for attention
again. Ted Cruz said today that he will not filibuster the bill, that he
will not stand in the way. But you know what, he will sure quick to get
into action to go do some face-saving camera talk. He ran to the cameras
with some I think remarkable spin.

(BEGIN VIDEO CLIP)

CRUZ: We saw the House of Representatives take a courageous stand
listening to the American people that everyone in official Washington just
weeks earlier said would never happen. That was a remarkable victory to
see the House engage in a profile and courage. Unfortunately, the Senate
shows not to follow the House. And in particular we saw real division
among Senate Republicans. That was unfortunate. I would point out that
had Senate Republicans united and supported House Republicans, the outcome
of this I believe would have been very, very different.

(END VIDEO CLIP)

SCHULTZ: Oh, no, it wouldn`t. That`s just procrastinating. That`s
just forecasting. That`s bad weather right there. This guy is a loony.
He really is and he has embarrassed the United States Senate. There`s a
difference between a legislative fight and the kind of fight that he staged
which was totally unnecessary to hurt a lot of Americans.

Now, this all started because this guy wanted to defund ObamaCare. He
made a name for himself quickly in a matter of months running around the
country, hyping up crowds saying that that was actually possible to do when
his own caucus was saying, "No. We can`t do that." So ObamaCare is going
to be fully funded, fully implemented on January 1st, a loss for the
Republicans. They want to fight another day, fine, let`s get it on.

The President of United States, maybe he learned some lessons in the
summer of 2011, but certainly the President has strengthened his position
and shown his liberal base that he can say no to these radicals and he can
hold his ground. Wait to go. We`ve kind of been waiting for that. I`m
glad it happened.

Republicans have absolutely accomplished nothing through this entire
exercise, not a thing. No political expert is running to every camera
saying, "Hey, this is really good for the Republican party," because a
public opinion right now is lower than whale manure when it comes to what
the American people think of the Republican Party.

In fact, I`m not going to spend a lot of time on this program on weeks
to come saying, "What`s wrong with the Republican Party? How are they
going to bounce back?" I really don`t care. I don`t think Americans care
about if the Republicans bounce back to become a viable entity in American
politics anymore. You know what Americans care about? They care about
jobs, they care about paying the bills.

The other thing that I think is a big scab that has been ripped off
all of this is that there has been a complete exposure to just novice news
consumers who may not pay too much attention to the minutia of Washington.
The power of outside groups have been exposed in a totally different way.
What John Boehner did last night when the heritage action group decided to
jump into the game one last time, and he pulled that bill away from the
floor, that`s set it off a lot. And it opened up the eyes to a lot of
Democrats that, you know, maybe we really can`t deal with this people.
They are puppets.

Then, this is the one that gets me the big loss. The GOP has scared
themselves with veterans. After using the veterans as nothing but
political pawns and flat out lying about who`s at fault for the shutdown
and who orchestrated the whole thing. Now, they have to go back home and
tell veterans that they are their friend. I doubt it. In talking about
going back home and explaining things, how long did it take this guy to get
to work today?

John Boehner called up his home, state of Ohio today probably do a
little interview on the radio with law-rated talker, Right Winger, Bill
Cunningham. Listen to this.

(BEGIN AUDIO CLIP)

BILL CUNNINGHAM: John, how are you?

BOEHNER: Hey, Bill, I`m doing good.

CUNNINGHAM: Are you sure you`re doing good?

BOEHNER: Yes. I am doing good.

CUNNINGHAM: Tell me why you`re doing good because .

BOEHNER: Well, listen, we`ve been locked in a fight over here trying
to bring government down to size, trying to do our best to stop ObamaCare.
And we fought the good fight. We just didn`t win.

(END AUDIO CLIP)

SCHULTZ: We just didn`t win. We fought the good fight, we just
didn`t win. So it`s a big political game. I thought Boehner was saying
not long ago that it was no game. So all of you workers out there, you
middle classers who have had to go through this gut-wrenching time where
seeing your finances are being torn and the lot. Throughout the entire
financial sector, throughout all of the anguish we`ve gone through, it`s
just all a political fight that Boehner`s been getting into the last few
weeks. It`s not a really big deal, there`s a bite we lost. There`s more.
Boehner also gave us a preview of what we can expect in the months to come.

(BEGIN AUDIO CLIP)

CUNNINGHAM: Can you win December 15th when Ryan and Patty Murray get
together and do this deal? Is this like a step on the ladder?

BOEHNER: Well, I would hope so but we`ll see. You know, every time
I`ve gotten into a discussion with the President, Vice President, the
Democrats here in Washington and talk about the entitlement changes trying
to make these programs sustainable, all they want to do is raise taxes.
We`ll we can`t do that unless you`re willing to raise taxes.

And so, if they`re going to hold on to their position that we`re
always going to raise taxes, then, we`re not going to come into an
agreement.

(END AUDIO CLIP)

SCHULTZ: I`d tell you what, the end names I have the vote of tonight
on the House floor. He`s already back home lying. Social Security will go
through adjustments but right now, for decades to come it is sustainable
and it is a great program that oh, by the way, Americans like -- Medicare
will go through some adjustments. There`s no question about that and the
Democrats are ready to do a few things on that, but the American people
like it and they don`t want to privatize it and they don`t want vouchers
which was rejected in the last election.

And the other thing about taxes, whose taxes have gone up because of
Barack Obama and the Democrats? Well, if you smoke cigarette your taxes
have gone up. Maybe your local property taxes have gone up, your federal
taxes went back after the Bush tax cuts expired, but Barack Obama hasn`t
laid anything new on you at all.

So it didn`t take Boehner very long to go home and try to map up with
his old body Bill Cunningham. And by the way, talking about saving money,
the Congressional Budget Office has repeatedly said and put out reports
saying that ObamaCare will save us money.

Get your cellphones out. I want to know what you think. Tonight`s
question, who is the bigger loser, Ted Cruz or John Boehner? Text A for
Ted Cruz, text B for John Boehner to 67622. You can always go to our blog
at Ed.MSNBC.com. We`ll bring you the results later on in the show.

Now this has been a real lesson for liberals in this country because
oftentimes there`s a crack in the armor. Often times, there`s some water
slipping through the wall so to speak. It didn`t happen this time. A lot
of credit goes to this man for keeping the caucus strong. Congressman
Steny Hoyer of Maryland who serves as the House Minority Whip, this is a
good day at the office, Steny if the votes go the way we think they`re
going to go. Hundreds of thousand of workers are going to go back to work
tomorrow. The government`s going to be open and we now go to fight for
another day. Your take on -- at this hour where we are, sir.

REP. STENY HOYER, (D-MD) MINORITY WHIP: Well, I think we`re going to
do the right thing. We`re certainly not doing the perfect thing, but we`re
doing the right thing and it`s never the wrong time to do that. I`m glad
that we`ve come to this agreement. The country is the loser in this so
far. Hundreds of thousands of people laid off, millions of people lost
services from their government, and the reputation of the United States of
America has been tarnished.

We`ll get it back. We`re a great country. We`re going to confront
this, but we cannot continue this government by crisis and this government
by hostage taking. It will not be a sustainable policy for Republicans to
follow.

SCHULTZ: OK. So that -- so that means .

HOYER: They`ve done it once, they`ve now done it twice .

SCHULTZ: Yes.

HOYER: . and let`s hope on January 15th they don`t repeat this
performance because the country is the loser and the American people have
been the loser.

SCHULTZ: Congressman, there`s not a whole lot of difference between
what you`re going to vote on tonight and what you could have voted on the
Continuing Resolution just a couple of weeks ago. So this .

HOYER: Yeah.

SCHULTZ: . this has been an unnecessary political exercise that has
hurt a lot of Americans. It`s also questioned our position in the world
financially in the markets. Can you count on the United States? And, you
know, Ted Cruz has got the kind of personality he could have changed his
mind and plot this thing. I mean this is not a way to run the railroad.
Can you trust Republicans that you`re going to get in them to conference
and you`re going to get a budget deal?

HOYER: Look, I think the American people have made it very clear that
they want to see responsible government pursued. They don`t want to see
their government shut down, they don`t want to see the government of United
States not pay its bills on time, and they thought this was a bad strategy
by the Republicans and they`ve sent that message to them. And I am very
hopeful that we will not repeat it because to repeat it will damage our
country and its people.

So that -- this deal, you`re absolutely right, Ed. This could have
been cut on September 28th, never had a shutdown, never had a debt at risk
of paying our bills. And let me say on that, it`s unfortunate that we
haven`t extended the authority to pay our bills well through 2015 frankly
to give the markets confidence, to give job creation confidence .

SCHULTZ: Well, that would help the economy and the Republicans don`t.

HOYER: . it would help the economy.

SCHULTZ: . want that.

HOYER: Absolutely. So let`s hope that they don`t put paying our
bills at risk again on February 7th. We`ve have to come to a reasonable
agreement. We`re prepared to do that, move forward but stop this
government by crisis.

SCHULTZ: It`s -- Congressman, it`s interesting John Boehner calls
back home to a Cincinnati radio station today. He`s quick to say about the
Conference Committee. Every time he talks to you guys, all you`re talking
about is raising taxes. I mean, you haven`t even gone to Congress
Committee yet, he`s already throwing barbs. In fact, you haven`t even
voted on this deal yet, and he`s already throwing barbs saying what it`s
going to be like dealing with the Democrats. Your reaction to that?

HOYER: Well, the real issue is paying our bills, paying our bills to
educate our kids, to keep our veterans in the kind of the benefits that
they deserve and earned, to keep Social Security going. The issue is about
paying America`s bills not raising taxes but paying our bills and deciding
what we want to do on a rational basis to make sure that American families,
American children, American seniors, American veterans have the kind of
quality of life that we want them to have in this country.

SCHULTZ: Yes.

HOYER: That`s what this conference is about. And frankly as you
know, Ed, we`ve been asking to go to this conference for six months.

SCHULTZ: Yes.

HOYER: Chris Van Hollen, the Ranking Democrats been asking to go to
conference 17 times and we have not been able to get there.

SCHULTZ: So what is .

HOYER: I am glad we`re going there. Let`s hope to go there with an
intent and agree upon a reasonable course of action.

SCHULTZ: Steny, what do you expect out of John Boehner? At one time
he said that ObamaCare -- the Affordable Care Act was the law of the land.
Is this going to continue on? Do you think that we`re going to keep
playing this all the way into 2014 about defunding ObamaCare and chipping
away at something that is going to work and is going to save lives?

HOYER: Ed you just talked about some of the outside groups. As a
matter of fact those very outside groups within the last 48 hours have been
-- given the answer to that question is, yes they want to continue to talk
about something, that almost every rationale Republican and commentator
independent or otherwise said, "Look this strategy is not going to work."
They pursued that strategy in any event. I`m hopeful that John Boehner,
Mitch McConnell will not pursue this strategy again because it clearly will
not work, shouldn`t work, and we ought to get down to the business and ....

SCHULTZ: But you have no assurance ...

HOYER: ... democracy.

SCHULTZ: You have no assurances that they won`t go down this road
again, do you?

HOYER: No we don`t.

SCHULTZ: OK. And I think that`s ...

HOYER: Let me tell you, Ed the American public needs to and votes and
everyone of these districts needs to tell everyone of us don`t do this,
stop this playing games, get down to work, make sense with one another, and
for our country.

SCHULTZ: Congressman Hoyer congratulations on the resolve keeping the
caucus together.

HOYER: Thank you.

SCHULTZ: I think the President also deserves an awful lot of credit.

HOYER: I agree with that.

SCHULTZ: He stuck to his guns throughout the whole thing and this is
only going to embolden the Democrats further as negotiations because we
know they`re going after the big three, they`re going after the
entitlements, the earned benefit programs, that`s the big price, and that
of course trying to take down ObamaCare.

Steny, great to have you with us tonight. Thank you.

HOYER: Thanks Ed. Appreciate it.

SCHULTZ: You bet. Remember to answer tonight`s question there at the
bottom of the screen, share your thoughts on Twitter at Ed Show and on
Facebook. We appreciate it when you do that.

Up next, Ted Cruz burns in his status as a political hot third rail.

Plus some millionaires in Detroit get a taste of what real people in
the city face when the lights go out.

(COMMERCIAL BREAK)

SCHULTZ: Time now for the Trenders. The Ed Show social media is
where you can find us on the radio SiriusXM, 127 and of course on Facebook
and on Twitter at Ed show. Well, our folks are reporting the Trenders,
obviously social media, all about what we try to do here we`re reporting
tonight. Here are the top Trenders voted on by you.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: OK just like we play a little bit.

UNIDENTIFIED MALE: The number three Trender band leader.

UNIDENTIFIED MALE: Will at his Alma matter USC. Will is the first
non-drum major to wear the full costume in the history of the band.

UNIDENTIFIED MALE: Will Ferrell shows his USC spirit.

UNIDENTIFIED MALE: On a great day cancer for college at USC that`s
program awarding scholarship to cancer survivors. So, good on you Will
Ferrell

UNIDENTIFIED MALE: The number two Trender, power header.

UNIDENTIFIED MALE: The lights have gone out, at least the majority of
them.

UNIDENTIFIED MALE: The scoreboards are flashing around the sides of
the ball park.

UNIDENTIFIED MALE: Detroit`s ball park goes dark during the American
League Championship series.

UNIDENTIFIED MALE: Not exactly Super Bowl XLVII.

UNIDENTIFIED MALE: He`s like have not come back on, they said that
suffocation went down. We`re going to take 15 to 20 minutes to get this
lights powered up.

UNIDENTIFIED MALE: Honey?

UNIDENTIFIED MALE: And today`s top Trender, Texas two step.

CRUZ : Do you like green eggs and ham? Mike Lee (ph) I am your
father, could you, would you -- with the goats? The song is Amazing Grace
and the theme from Gilligan`s Island are musically interchangeable. I
would not, could not with a goat.

UNIDENTIFIED MALE: The Houston Chronicle walks back it`s endorsement
of Ted Cruz.

CRUZ: All caps and three exclamation marks. I let you decide whether
that`s a good or bad thing.

(END VIDEO CLIP)

SCHULTZ: Let`s bring in Senator Ben Cardin of Maryland. Senator,
good to have you with us tonight.

SEN. BEN CARDIN, (D) MARYLAND: Thank you Ed good to be with you.

SCHULTZ: The Tea Party has really infiltrated our government and done
some real harm to us on an international level when it comes to how people
view us and at that the heart of all of this in this -- in the Senate is
Ted Cruz. Are other senators expecting that this is just the way it`s
going to be dealing with these guys that one guy can gum up the works and
cause the country so many problems?

CARDIN: Oh, Ed this shutdown of government has really hurt our
economy, hurt our country, hurt a lot of people and it was totally
avoidable. If we go back three, four weeks ago speaker Boehner thought he
had a plan in order to pay us what we call a clean and Continuing
Resolution that would have kept government open but it was the Tea Party
that hijacked that plan and certainly Senator Cruz talked about that for a
long time in the floor of the United States Senate.

So, there is no question that they`ve caused harm. The tragedy here
is that if we could have had a vote on the floor of the House three weeks
ago, we could have kept government open.

SCHULTZ: Are they going to use the same strategy the next time
around? Steny Hoyer from your state over on the House side tells me that
there`s no guarantees that, you know, this isn`t the kind of shenanigans
that you`re going to be subjected to in the future, that this could just be
kick in the can down the road, buying a little bit more time, but there`s
still Republicans.

CARDIN: You know, such harm was caused to this country because of the
shutdown; the near violation of our credit limits also caused this country
real damage. I just hope that those who have been this ridiculous in the
way that they have failed to work together will realize that the American
people won`t tolerate this type of harm to our country.

So, yes we have a heavy lift to get a budget done by December and pass
another budget by January. But I can tell you there are good people on
both sides of the aisle that want to make sure this happens because they
know the harm to our country. I`m not sure everyone gets it yet but I hope
the American people gets it.

SCHULTZ: Well, our good people going to conference. One of them is
an ideologue and his name is Ryan and he`s over on the House side. And
he`s the Chairman of the House Budget Committee we know all about his
antics when it comes to talking about vouchering Medicare is going to go
right down that road again, you know he is. I mean this is going to be OK
to our conference committee, but we`re going to be in an ideological lag
(ph) head again, aren`t we?

CARDIN: It`s going to be very challenging, but Patty Murray the
Senate Chair, and Chris Van Hollen the House or Democratic leader on the
committee are both very talented people. They know the challenge that they
have; they know how difficult it`s going to be. But I think if we can keep
this as open as possible and American people understand what it stakes here
we have to act like adults and reach an agreement for the good of this
country.

SCHULTZ: OK. Well, so the next, you know, weeks to come the
Democrats are going to have to get the polls to the American people again
about what do you think about Social Security? How far are you willing to
go? Medicare, Medicaid, that`s where the Republicans are going. And of
course they`re going to try to chip away at ObamaCare in Conference
Committee.

So, resolve is the real word for the Democrats again.

CARDIN: Well, I think you`re going to find resolve. Our bottom line
is we want our country to grow, we want to create jobs, we want to invest
in transportation infrastructure, transit, and to energy, and to education,
and to research. We want to make sure that we have a balance way to deal
with our budget including the revenues necessary to fund government and
we`re going to fight very hard to make sure our priorities are part of that
discussion. We don`t expect to win on every issue, but the bottom line is
we need a budget that will allow America to grow and we`ll protect those
who were the most vulnerable.

SCHULTZ: All right. Senator Ben Cardin good to have you with us on
the Ed Show tonight. Thanks so much.

CARDIN: Thank you.

SCHULTZ: Coming up. The world thinks we`re all a bunch of Boehner`s.
Plus Fox`s psychoanalyst Keith Ablow needs to take a turn on the curvy
couch.

But next I`m taking your questions Ask Ed Live is just ahead. Stay
with us.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. Love your questions here on
the Ask Ed Live segment. Our first question comes from Jim. What are the
chances the government shuts down again in January?

50, 50 remember they`re Republicans you just heard on this program the
last segment that the Democrats have been given zero guarantees that we
aren`t going to go through this again, that Boehner doesn`t have the
character and of course Cruz doesn`t to step up and say, "You know what?
There`s a damage to the country, it wasn`t the right way to run the
railroad. We`re not going to go down this road again. We got to win in
the arena of ideas."

Our next question comes from Steve Highley. Which use car dealership
will Ted Cruz will be working for after his next election?

He`ll probably start as a -- used car a lot. And it probably won`t
have a whole held a lot of inventory either. I don`t think too many people
want to do business with Ted Cruz. There`s a real sadness to this question
though because in the United States Congress there has been a tradition of
statesmanship that it is about the country. Ted Cruz for a long time up
until the very last second made it all about him.

Stick around Rapid Response Panel coming up next.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. No matter what the final
outcome of the showdown is one thing is very clear, the damage to our
global reputation has already been done. The self-inflicted crisis has
eroded our credibility across the globe. And the British newspaper put it
this way, the Guardian, "Americans need to discover how the world sees
them."

Let`s take a look at some of the world`s reaction. In France, a
headline reads "Jefferson, wake up, they became fools!" In Sri Lanka, "The
good governance, advocates cannot govern themselves." In Germany, they are
saying, "America is already politically bankrupt and calling Republicans
the Kamikaze Party." Heck, even the Taliban militants took the opportunity
to taunt the United States. The group issued this statement according --
accusing politicians of, "Sucking the blood of their own people."

Without a doubt, our biggest critic in this crisis is China. As the
chief holder of US Treasury Bonds, China has certainly a lot at stake.
Close to $1.3 trillion of US federal debt can be exact -- to be exact is
where it is. China is using this disaster to turn out some scathing anti-
US propaganda and the communist party`s mouth piece the People`s Daily
wrote, "It is America`s arrogance that led to this US decision to bypass
the United Nations and launch a war in Iraq. It is the same arrogance that
often lets America use domestic policy to kidnap the global economy."
Another state-run media outlet in China took it a step further saying, "It
is perhaps a good time for the befuddled world to start considering
building a de-Americanized world.

Joining me now, our Rapid Response Panel Joan Walsh of Salon.com and
Goldie Taylor, Managing Editor of Goldie Taylor Project and an MSNBC
contributor.

Well, what an interesting day this has been. Joan, you first, this is
pretty serious stuff. China is talking about de-Americanizing the world.
They are certainly not on our side.

JOAN WALSH, EDITOR-AT-LARGE, SALON.COM: No.

SCHULTZ: Does this teach our politicians in Washington anything?

WALSH: I don`t know. I don`t know that they`ve learned -- that the
Republicans
have learned anything, Ed. You know, Christine Lagarde the Head of the
IMF, told David Gregory this weekend that this mess was a big topic of
conversation at the IMF because we are a pillar of the IMF, the
International Monetary Fund. We`re not some debter nation, you know, and
that`s a failed state that their used to having to stoop in and help. We
are the backbone of that organization and like so many organizations.

You know, we`ve had crisis in our past, and we, you know, I think we
had a constitutional crisis in 2000 when the Supreme Court stepped in and
stopped the voting in -- recount in Florida and made George W. Bush
president. And Democrats grumbled but, you know, Al Gore can see it
immediately and they fell in mostly behind that president at least until
people began to fall out around the Iraq war. These people never once,
never for a minute fell in behind this president. He was elected with 53
percent of the vote the first time. And they plotted against him, the
night that he took office.

We`ve been in a crisis since 2008. And I think the world is just
waking up to it that there are some people that will not accept the
legitimacy of this presidency.

SCHULTZ: Goldie, I think that the Republicans have given our
adversaries even though they lend us money, our trade adversaries in a big
way. A real opportunity to weaken our country, I mean the Republicans
caused this, they are the ones that decided to shut down the government,
that threatened not paying the bills, that hurt us internationally. How
does President Obama deal with this? How do the honest brokers in the
Congress deal with people like this, or ideologues and they`ll do anything
to push their gain?

GOLDIE TAYLOR, MSNBC CONTRIBUTOR: You know first, Ed I`ve got to say
that I certainly believe in this country and I believe in the strength of
this democracy that it is strong and it last enough to host more voices not
fewer. And so I am a person who is in favor of a strong two party system,
a multiparty system, where you have, you know, diversion voices coming
together around a table that may agree or disagree.

But when it comes to how the outside world sees us, that`s another
story. And so we`ve got to show a strong and united front to the rest of
the world whether it is within our Foreign Affairs or banking relations or
what have you. And so I think that, you know, this means real trouble for
us when we get farther to some people who may not have our best interest at
heart, who may be looking to exploit this situation for their own gain.

This is a Republican Party who constantly talks about how this America
looks to the rest of the world under this president. This is a Republican
Part that constantly talks about how we ought to bring stability so that
businesses know what we`re up to and so that, you know, they can plan for
these things and don`t contract jobs and support this economy. This is a
Republican Party that is constantly talking about how our reputation
impacts us going forward and this is the very same Republican Party that
did everything in its power to crush that reputation around the world.

SCHULTZ: So how -- OK we`re kicking the can down the road. We get to
play this game again in a few months. Where`s the victory here, Joan
Walsh?

WALSH: There`s no victory, Ed. It`s really not a victory, you know,
I think we`re all relieved. It looks like we`re not going to default. It
looks like we`re going to open the government temporarily. But I fear that
the three of us are going to be having these same conversations down the
road in December, January and February.

It`s not a victory. The Democrats again, did the responsible thing.
They did not give away much, but they did give a little bit. And I don`t
think that we`ve broken this fever yet. I think you hear Ted Cruz and you
hear other voices saying, "We will fight again. We live to fight again,"
and they will fight again. We cannot delude ourselves.

Plus we`re going to -- I think, you know, we maybe fighting amongst
ourselves. If they`re really serious about entitlement cuts or in benefit
cuts which it sounds like some Democrats are serious.

SCHULTZ: And well in many ways the fights just begun.

WALSH: Right.

SCHULTZ: I mean, when you look at the big three and what they really
want to do, they want to prioritize everything.

Political exhaustion right now Goldie there`s no room for liberals, if
they want to protect their ground. I mean, this is -- these are election
deniers. I mean, you go listen to Paul Ryan, the House Budget Chairman and
you know what he`s going to come to the table with.

TAYLOR: No, (inaudible)

SCHULTZ: And so, you know, they don`t want to give anything. They
don`t want to give -- I mean Boehner out there today on radio in Cincinnati
is saying that every time he talks to a Democrat all they want to do is
raise taxes. Now that simply isn`t true. So, how do you deal with these
people?

TAYLOR: You know, I think we`re talking to different people today in
October 2013 that were going to be talking until January and February 2014
when we got midterm elections to move forward to.

The American people, I think have shown very little patience with this
kind of brinksmanship. And so I think we`re going to see, you know,
somewhat a different approach coming -- going forward. We`re going to hear
entitlements talk about that putting back on the table. We`re going to
talk about some of the earning benefits to the Americans receive today that
coming back today. We`re going to hear a lot about debt and deficits.

But not think -- I don`t think we`re going to get back to shutting
down the government. I don`t think we`re going to come back to, you know,
the possibility of reaching this debt ceiling. I don`t think we`re getting
back there anytime soon, just because, you know, the midterm election 2014
are coming up and we`ve got a handful of Tea Party congressmen who want to
be US senators and they don`t want this conversation to come up.

SCHULTZ: I mean in the liberal community in this country, if you care
about workers, if you care about American jobs, what`s on the table with
the Transpacific Partnership, this is going to be a big deal. And I think
that this Conference Committee cannot over shadow that because it plays
directly to American jobs.

I mean there`s a lot of business to be done in this country. Then
there`s word now that the World Bank is going to subsidize the renewable
energy efforts by the Chinese in other countries.

WALSH: Yeah.

SCHULTZ: And so, we know that the policies of the Republican Party
certainly and the conservative do not protect workers.

WALSH: No, and I think this is part of the strategy too, as long as
we`re fighting these battles and as long as we`re trying to keep them from
taking something away from people, we`re not arguing to give more to people
to grow the economy.

You know, Barack Obama .

TAYLOR: That`s right.

WALSH: . had a chance -- has a chance, had a mandate, you know, still
has a mandate to do what FDR did. FDR built an opportunity letter for the
20th century in the new deal and he built that vast middle class that many
of us came from. We need to do that again.

Barack Obama had a shot -- has a shot to do that again. He had a
mandate to do that again, coming out of the financial crisis and they
stopped him, you know.

TAYLOR: That`s right Joan. We`re not talking about the job sect.

WALSH: Right.

TAYLOR: We`re not talking about immigration. We`re not talking about
those things that could actually fuel this economy.

Again, like you said, we`re talking about what we`re not going to take
away people .

WALSH: Exactly.

TAYLOR: . rather than what we`re going to invest in the communities
that needed most.

WALSH: Right.

SCHULTZ: Goldie Taylor, Joan Walsh, thanks for being on the Ed Show.
I appreciate your time tonight.

Coming up, Congresswoman Debbie Wasserman Schultz joins us at the
Punch Out.

(COMMERCIAL BREAK)

SCHULTZ: And in Pretenders tonight, the doctor is out Keith Ablow.
Fox`s very own psychoanalyst, says he`s got President Obama figured out as
the victim-in-chief.

KEITH ABLOW, PSYCHIATRIST: There`s a real victim mentality here and
that explains why he wouldn`t negotiate with hostage takers and
victimizers.

I think the President going back to when his dad abandoned him, when
his mother left him with his grandparents, when he describes his
grandmother as intimating, that she didn`t trust men of color. That all of
those things led him to feel victimized, hurt and injured. And he has
extended it to this country, more food stamps don`t learn to feed yourself,
don`t fight it within yourself to pull yourself up.

SCHULTZ: Woah, woah,woah, wait a minute. Do you hear the first part
of that sound byte? Did he just call the Republicans hostage takers? Kind
of interesting. Keith Ablow knows abandonment.

He tried to run for Massachusetts Senate seat this year on one
condition, the Republican Party would not desert him, the doctor, the
victim of the GOP`s uncharacteristically good decision to reject the offer.

I believe Ablow knows something about daddy issues when he can point
to himself. President Obama isn`t a victim. He`s a leader with policies
that strengthen America. Dr. Ablow should stick to folks on his own level
and go back to co-authoring books with Glenn Beck.

If Ablow wants us to believe that he has insight on anything besides
the curvy couch pillows he could just keep on pretending.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. This is the story for the
folks who take a shower after work. This round of the fight is nearing an
end, we hope, can`t trust Republicans, they haven`t voted yet.

Republicans are squirming and Democrats are ready for the next round.
This government shutdown has exposed the right to the American people to
the big way and it could cause a big time in 2014. Once this vote is
settled, I guess you can say the election starts, because the issues in
Conference Committee are going to be what the next election all about.

The DCCC put out a serious of minute-long radio commercials targeting
10 House Republicans, each of these guys highlighted in the commercials
caused this shutdown.

This is a simple example of Republicans getting what they deserved.
These Republicans were reckless, enough to shutdown the government to
achieve a goal of stopping people from getting health care. And for
Democrats this is a fuel on the political fire, no doubt. The fire is
spreading to elections and districts all over the country.

Last night in the first of three televise debates in the raise for New
York City Mayor Democratic candidate Bill de Blasio didn`t take a
traditional play at safe strategy at all of a front runner, instead the de
Blasio expanded his opponent and exposed his opponent and branded him as a
textbook Republican.

(BEGIN VIDEO CLIP)

BILL DE BLASIO, NEW YORKMAYORAL CANDIDATE: You can`t have it both
ways. I think when the Republican primary was going on, Mr. Lhota wanted
to prove he was a conservative Republican. Now he`s trying to appeal to
the mainstream.

(END VIDEO CLIP)

SCHULTZ: That`s how it`s going to have to be in 2014. Seems to me
Republicans are going to need a pretty big bucket of water to put this fire
out.

Up until now, Speaker Boehner and Ted Cruz were only fanning the
flames. Congressman Debbie Wasserman Schultz joins us tonight. Great to
have you with us, Congresswoman.

REP. DEBBIE WASSERMAN SCHULTZ, (D) FLORIDA: Great to be back with
you, Ed.

SCHULTZ: Was it a better day at the office if this goes the way we
think it`s going to go tonight. But really there are no winners here and
this is a can kicker and it`s a chance for both parties to go at each other
again to get what they want. How do you see this?

WASSERMAN SCHULTZ: Well, I see it that thankfully we are -- we`re
going to reopen the government and make sure that we don`t default on our
nation`s debt and we`ll pay the bills. We`re at a place where we should
have been -- two weeks ago, we never should have shut down the government,
we didn`t have to be this way.

But we`ve gotten to this point where now we have a chance. And I
serve on the Appropriations Committee so I know, probably all the
appropriators, are really glad to know that we`re going to have a Budget
Conference Committee finally where we can hash out what the appropriate
spending levels are, hopefully get rid of this across the board,
irresponsible sequester cuts and focus on more targeted spending, targeted
cuts, and make sure that we can get past this living from crisis to crisis.

SCHULTZ: All right. Let`s clarify something. On this Budget
Committee that the Democrats have requested and have done so many times,
the Republicans they don`t -- they say, "No that`s not true." Who`s
telling the truth here? What`s going on?

WASSERMAN SHULTZ: I mean it`s just that I don`t know what truth they
are subscribing to and we have a budget that passed to the House, one that
passed the Senate. We`ve been trying to get the Republicans to agree to a
point conference (ph) and they`ve refused and we`ve not been able to send
very many, just a handful of our appropriations bills over to the Senate
and the appropriations process is entirely stalled because the Republicans
want even deeper cuts than the current sequester levels are.

And so look, I`m glad that we`ve reached a bipartisan compromise
coming from the Senate. I`m hopeful it`ll garner enough Republican
support, but sadly you`ve got heritage action and freedom works that have
key voted and are scoring these votes. So anyone on the Republican side
that is a bit afraid of the Tea Party is not likely to end up feeling
comfortable voting for this to this you van say.

SCHULTZ: Well, considering the influence of those outside groups in
this environment. What kind of behavior do you expect from the Republicans
before January 15th?

WASSERMAN SCHULTZ: Well, I think we`re going to -- I`m going to be an
optimist. We`ll have enough Republicans that will understand we can`t do
this again that this is dangerous for our economy. And, you know, I know I
am going to reach across the aisle, many of my colleague`s plans to reach
across the aisle and do all we can to start tamping down the rhetoric.
Let`s -- We`re going to do -- we`re going to be one part as Democrats and
we need enough Republicans to join us so that we can really focus on doing
the right thing together and making sure my way or the highway politics is
a thing of the past.

SCHULTZ: How damaging is Boehner in all of this?

WASSERMAN SCHULTZ: Well, I think, you know, that`s really more for
the judgment of Republican members of Congress. I think that, you know,
he`s -- I`m glad that that he`s finally agreed to let the whole House vote
and put a majority behind -- of the whole House behind legislation .

SCHULTZ: Do you think he`s learned anything, Congresswoman? I mean,
there`s no -- not a whole lot of difference to in which you`re voting on
tonight. And what what`s .

WASSERMAN SCHULTZ: There isn`t.

SCHULTZ: . on there two weeks ago.

WASSERMAN SCHULTZ: It`s hard to say. I mean I think that Speaker
Boehner has clearly been more focused on remaining Speaker and his
leadership position than he has in doing the right thing. I don`t know why
we had to go, you know, all the way up to the very last minute and
teetering on the preface (ph) of economic disaster.

But look, hopefully he`s learned something. He cannot allow the Tea
Party extremist and his caucus who are definitely a minority to drive the
agenda. We`ve got to finally stand up to them and tell them, "Look, we`re
going to -- the only way to move our country forward is to work together
and we`re not all going to get our way all the time. It can`t be that
way."

SCHULTZ: They want their way all the time.

WASSERMAN SCHULTZ: They do. They do, the Tea Party does.

SCHULTZ: They want the big three, the want the big three, they want
to privatize, we`re going to beating this drum between now and January
15th.

WASSERMAN SCHULTZ: Let`s hope not.

SCHULTZ: Well, if they budge, I can`t wait to see where it is.
Congresswoman, thank you for working hard on keeping the caucus together.
This has been really .

WASSERMAN SCHULTZ: You`re welcome.

SCHULTZ: . a great day for .

WASSERMAN SCHULTZ: We`ve been unified. I`m really proud.

SCHULTZ: You bet. 800,000 Americans are going to go back to work if
everything goes right tonight. Good to have you with us.

That`s the Ed Show, I`m Ed Schultz.

Politics Nation with Reverend Al Sharpton starts now. Good evening,
Rev.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY
BE UPDATED.
END

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