Former acting White House chief of staff Mick Mulvaney joined "Varney & Co." Friday ahead of President Biden's $6 trillion budget plan announcement. Mulvaney, who wrote a $1.5 trillion budget under former President Trump, opposed the pricey spending plan and warned against Modern Monetary Theory.
MICK MULVANEY: What you're hearing them talk about now at Treasury and to a certain extent at the Fed, is that the level of debt doesn't matter. It's just the level of interest payments. And as long as the interest payments are okay, then you'll be alright.
This is the equivalent of saying, 'As long as I can make the minimum payment on my credit card, I'll be okay.' Of course, the difficulty comes when you realize that interest rates are not fixed for the federal government.
Interest rates could go from 1.5% today to 4%. You and I are old enough to remember when interest rates were 14, 16, 18%. So it's a very dangerous game, a very dangerous experiment.
This is unprecedented and I really don't think they have a plan beyond just spending a lot of money in order to try and get their agenda passed and win reelection.
[The budget is] a negotiation. It's going to be some place just shy of [$6 trillion]. I don't think he'll get the backdated capital gains either, just because of the turmoil that would throw markets into.
This is a messaging document. It's not a spending document. It is what the president would do if he was in charge all by himself.
And to that, it's insightful as to what we've elected. And Joe Biden, it was not the moderate people expected. It was a hardcore left-wing leading a hardcore left-wing party.