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As the national debt hits $16 trillion and with a looming jobs report after his address, what is the president's best argument for re-election?
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The one thing I know with absolute certainty.
Having served two great presidents.
Is then in the next four years.
And on for -- crisis challenger conflict.
Is gonna show up and sees this country.
Whose leadership.
Whose judgement and whose values do you want in the White House when Mac prices lands like a thud on the Oval Office desk.
Apart that's right a person who said in four words let Detroit go bankrupt or president.
Who had another four words not my watch.
Am.
We're back live in -- and tonight at the Democratic National Convention opening just as US though it national debt top sixteen trillion dollars.
Republicans are blasting President Obama for the out of control debt here's a vice presidential nominee Paul Ryan -- -- -- rally today.
We just heard about an hour ago.
That our government.
Eclipsed the sixteen trillion dollar mark and our national debt.
This is a serious threat to our economy.
Of all the broken promises from President Obama.
This is probably the worst one.
Because this debt.
Is threatening jobs today.
Is threatening prosperity today it is -- team.
That our children and grandchildren get it diminish future.
We had -- debt clock at the convention last week I don't see the debt clock at the convention this week.
The problem is the president keeps kicking the can down the road.
No leadership on this issue.
The senate has even passed a budget in three years.
We have -- very clear choice ahead of us.
Are we gonna stick with the same path a nation and detonation doubt a nation in decline.
Or we elect Mitt Romney president get this thing -- -- -- cut spending balance the budget may create jobs.
That's look at it yeah.
I think golf is a former chairman of president Obama's council of economic advisors he joins us -- to say -- emergency.
OK explain to me it's into the congress President Obama has piled up more -- five point four trillion dollars in three and a half years.
And that's more than twice when President Bush did in two terms why the difference.
-- I mean obviously the main reason the deficit exploded is that we went into the worst downturn in 75 years so.
Before there everything is an Obama administration in January of 2009.
The Congressional Budget Office forecast the -- going to be one point three trillion dollars that's based just on how economic conditions are operating.
So.
It's quite important that we separate.
What -- true fiscal challenge facing the country that we've known about for forty years and is rooted in.
The aging of the population.
And the rise of health care costs and the choice -- we've made about tax policy.
And separate that from the part that comes from.
The business cycle.
And I would point out.
The decisions we made at the end of 2010.
In a bipartisan basis the last bipartisan thing we did was everyone agreed.
To extend the tax cuts.
And then discovered that the deficit was larger than was forecast after they pass the tax cuts.
I what I try is go through some.
Economic indicators to find out really how the how the country has spared.
Under present boss specially this latest that he had discussion about whether or not you better off now than -- four years ago.
Unemployment eight point 3% of course it's much higher than projected by one of your colleagues very early on what you think -- when is -- huge misstep.
Continued weakness in manufacturing activity it's the lowest since July 2009 that just came on Friday.
Interest rates short and long term at historic lows yet the economy is in a -- even though money is the money would in theory be -- to borrow.
We have of course a sixteen trillion dollar debt.
The economy has slowed the growth was four point 1% the last quarter of last year 2011.
First quarter's 2.0 that's down and then declined again in the second quarter one point seven.
With 46 million and food stamps which is a rise.
Business uncertainty.
Chairman Bernanke describes the economy just last week as far from satisfactory in the present grades himself is incomplete.
None of those are particularly appealing and sort of inspiring.
Indicators do have something to make me -- -- well.
I would say -- -- seems like you rather selectively -- okay so we'll give me some now when I'm I think I'm I would agree with what chairman Bernanke said we're far from satisfactory.
And we got a long way to go but.
Anybody who would read there'd be.
In this situation in January of 2009.
Vs where we are now.
Was asleep during January of 2009.
That was one of the most harrowing scary months in the economic history of this country.
We lost 800000.
Jobs in a single month.
We had just gone through the worst financial crisis.
In almost a century.
That -- had fallen 4050%.
And my colleagues are calling me up the people of the economics profession saying.
This is exactly how the Great Depression began and what you better figure out is how you gonna get out of the depression that is about to start so.
We absolutely.
Are better off than that situation that doesn't mean that we're in a good spot right now we're obviously trying to work -- way out of it.
The growth rates that we have had have been modest.
And I would highlight d'souza is it it was terrible -- he might give us you might be a fair way to describe it -- -- say modest but I want.
In the advanced world let's start -- that what I was gonna say is why you as much as we have struggled.
If you look at Germany the UK Japan -- out in Europe throughout the advanced world.
We are getting no support from any other part of the world so are the growth of our exports.
Is just -- the sweat of our own brow there's no obvious massive growth engine that's driving.
Two to help us.
And I would say the second thing is remember in 2004.
When George Bush who runs for re election.
They say quite rightly he came in in a recession that he did not create.
That was they need a surplus yes service Abbott and that the -- what I'm saying to George Bush's credit he's that we didn't create this recession.
And we have created a million jobs in the last year that's what he ran on a 2004 and and I got more than four million created and I've got to heartbreak I have to go to -- have to come back thank you very good Greta.
