Clinton speaks on debt, economy

Former President Bill Clinton declared himself on Tuesday night to be a fiscal conservative in favor of reducing the national debt but doing it with a political balance that characterized his eight years in office.

Speaking to about 10,000 furniture industry representatives assembled for the World Market Center's semi annual market, Clinton sidestepped an endorsement or condemnation of the debt reduction legislation signed by President Barack Obama hours earlier.

"The Democrats are proud, and Republicans are relieved that they didn't do anything to Social Security or Medicare," Clinton said in answer to a preselected question.

At another point, he added, "Whether it's a good thing or a bad thing for America in the long run depends on how you fill in the blanks."

Exempting the two huge social programs and relegating cuts to what is termed discretionary spending would "halfway gut" a broad range of federal government activities that are "the future of America and quality of life for America," the former president said.

In a recurrent theme that blended in with frequent mentions of his philanthropic activities, Clinton said, "It's not just the numbers, it's how you do it."

He gave an example spotlighting the Pentagon. He said the Pentagon could save on the large sums spent every year in sending air conditioning equipment it uses in remote parts of the world by switching from gasoline generators to renewable energy sources such as solar or wind. That also would reduce the dangers of driving gasoline tankers through hostile territory, he said.

To clear the wreckage of the housing bust, which has affected the furniture and gift industries, the former president recommended that the federal government pay banks $10,000 on top of reimbursing them for normal foreclosure fees. That would give lenders adequate incentive to renegotiate delinquent or underwater loans -- where the home is worth less than the balance of the mortgage -- then rent out the houses until the market rebounds sufficiently to allow their sale.

"A lot of people don't like this," he said . "They say (buyers) never should have borrowed that money in the first place. That's true, but every time you foreclose on a house, it drives down the neighbors' houses by 20 percent."

Clinton concluded with a typical and balanced optimism that is a trademark of his. "Don't get down on your country, but don't be in denial either" about its problems, he said.

World Market Center officials did not disclose Clinton's fee. But documents made public for a speech he gave in March at the University of Albany in New York showed that he received $200,000.