RNC: Debtor Days Ahead

Will Obama Finally Admit That The Democrats' Budget Borrows Too Much At
Tonight's Press Conference?

WASHINGTON, March 24 /PRNewswire-USNewswire/ -- The following is being issued
by the Republican National Committee:

(Logo: http://www.newscom.com/cgi-bin/prnh/20080519/RNCLOGO)

Last Week, The Congressional Budget Office Said Democrats' Budget Could
Produce $2.3 Trillion More In Debt Than Current Estimates:

According To The CBO, Deficits For The Democrats' Proposed Budgets Could Be
$2.3 Trillion Higher Over The Next Decade Than Originally Predicted By The
Administration. "CBO is predicting that over the next 10 years, deficits could
be $2.3 trillion higher than the White House has admitted thus far." (David
Rogers, "Conrad Takes Out His Knife," The Politico, 3/23/09)

"By 2019, The Government Will Be Paying $806 Billion Annually On Interest
Charges Alone -- A Cost That Appears To Exceed In Real Dollars The Core
Pentagon Budget Today." (David Rogers, "Conrad Takes Out His Knife," The
Politico, 3/23/09)

The CBO Projected That The Democrats' Budget Will Produce $9.3 Trillion In
Total Deficits Over The Next Decade. "President Obama's budget proposals, if
carried out, would produce a staggering $9.3 trillion in total deficits over
the next decade, much more than the White House has predicted, the
Congressional Budget Office said on Friday." (David Stout, "Much Bigger
Deficits Seen In Budget Office Forecast," The New York Times, 3/20/09)

The CBO Report Is "Certain To Bring New Expressions Of Alarm And Dismay From
Deficit Hawks On Capitol Hill." "The startling new figures have enormous
implications, political as well as fiscal. They are certain to bring new
expressions of alarm and dismay from deficit hawks on Capitol Hill, where the
president's $3.6 trillion budget proposal for the next fiscal year, which
begins in October, has already stirred debate." (David Stout, "Much Bigger
Deficits Seen In Budget Office Forecast," The New York Times, 3/20/09)

After It Was First Released, The Democrat Budget Had People Wondering If "Rosy
Scenario" Was Back In Washington:

Private Economists Wonder If Democrats Have Brought "Rosy Scenario" Back To
Washington. "The administration insists it isn't so, but some private
economists are wondering if the Obama administration has brought 'Rosy
Scenario' back to town." (Martin Crutsinger, "Economists Question Budget's
Economic Assumptions," The Associated Press, 2/27/09)

Many Economists Say The Democrat Budget Uses "One Of The Oldest Gimmicks
Around" By Relying On Overly Optimistic Economic Assumptions. "But many
economists who examined the economic assumptions that undergird the spending
plan believe that Obama may have resorted to one of the oldest gimmicks around
-- relying on overly optimistic economic assumptions to make it look like you
are dealing with soaring budget deficits when in reality you are only closing
the gap on paper." (Martin Crutsinger, "Economists Question Budget's Economic
Assumptions," The Associated Press, 2/27/09)

In Order To Achieve The Deficit Cutting That Democrats Hope For, The Economy
Would Have To Grow At Levels Similar To The Boom Of The 1990s. "The Obama
budget puts the deficit at less than $600 billion starting in 2012 from $1.75
trillion this year. Getting to that point requires GDP to rise more than 4% a
year by then -- meaning the U.S. would quickly return to growth rates similar
to the boom years of the 1990s -- after the worst financial shock since the
Great Depression. Such growth is more than a full percentage point above
private-sector growth estimates for 2011 and 2012." (Sudeep Reddy, "Rosy
Assumptions Hold Down Deficit," The Wall Street Journal, 2/27/09)

White House Economist Christina Romer Admitted That The Democrats' Economic
Forecasts Are "Somewhat More Optimistic" Than Private Economists. "Speaking to
reporters Thursday, White House economist Christina Romer called the
projections an 'honest forecast' by the administration's professional
forecasters. 'I'd reject the premise that we're noticeably rosier,' she said.
'We certainly are somewhat more optimistic, but certainly nothing out of the
ballpark.'" (Sudeep Reddy, "Rosy Assumptions Hold Down Deficit," The Wall
Street Journal, 2/27/09)

But President Obama's OMB Director Has Finally Admitted That Their Original
Projections Were "Ultimately Not Sustainable":

OMB Director Peter Orszag Admitted That The White House's Initial Deficit
Projections Were "Ultimately Not Sustainable." "President Obama's budget
director, Peter R. Orszag, conceded in a news briefing on Friday that annual
deficits of 4 to 5 percent of gross domestic product, as envisioned in the
office's report, are 'ultimately not sustainable.'" (David Stout, "Much Bigger
Deficits Seen In Budget Office Forecast," The New York Times, 3/20/09)

Key Democrats Have Concerns About The Proposed Budget:

Senate Budget Committee Chairman Kent Conrad (D-ND) Wants To Cut Almost Half
Of Obama's Increased Appropriations For Domestic And Foreign Aid Programs.
"Armed with new deficit estimates, Senate Budget Committee Chairman Kent
Conrad is pressing to cut up to $28 billion, or almost half, of the increased
appropriations sought by President Barack Obama for domestic and foreign aid
programs in the coming year." (David Rogers, "Conrad Takes Out His Knife," The
Politico, 3/23/09)

Sen. Conrad: "More Discipline On The Spending Side Is Also Going To Be
Required." "Sen. Kent Conrad (D-N.D.), a deficit hawk who chairs the Senate
Budget Committee, said he is 'very uncomfortable with the buildup of debt' and
urged Obama to make good on his promise to overhaul federal retirement and
health-care programs." (Lori Montgomery, "Battle Lines Quickly Set Over
Planned Policy Shifts," The Washington Post, 3/1/09)

Sen. Conrad: "We're Seeing The Prospect Of Another Doubling Of Debt, And
That's Unsustainable." Conrad: "The longer-term circumstance is of much
greater concern because we are piling up debt at a record rate. As you said in
the previous administration, the debt was doubled in just eight years and
doubled when the economy was strong. Now the economy is weak. We're seeing the
prospect of another doubling of debt, and that's unsustainable. That's why I
say the second five years of the President's budget plan really needs to be
focused on. We've got to do a much better job of getting this long-term debt
under control." (MSNBC's "Morning Joe," 3/16/09)

-- Click Here To Watch

Sen. Conrad Said Obama's Budget Initiatives "Are Primarily Not Deficit
Reduction" And If Obama Follows The Same Route His Budget Will Look Like
"Swiss Cheese" At The End. "'Reconciliation was written for deficit reduction.
These initiatives are primarily not deficit reduction,' he [Sen. Conrad] said
of the president's proposals. And he warned that if the administration follows
that route, it will end up with bills that look more like 'Swiss cheese' at
the end." (David Rogers, "Lawmakers To Obama: Change Budget," The Politico,
3/18/09)

Sen. Ben Nelson (D-NE): "I'm Concerned About The Amount That's Being Offered
In [Obama's] Budget." "Asked when he'd reach his breaking point, Nebraska Sen.
Ben Nelson, one of the most conservative Democrats in the Senate, said: 'Right
now. I'm concerned about the amount that's being offered in [Obama's]
budget.'" (Manu Raju, "Moderates Uneasy With Obama Plan," The Politico,
3/3/09)

Sen. Jon Tester (D-MT): "At What Point Of Time Do You Say Enough Is Enough?"
"'At what point of time do you say enough is enough?' said Sen. Jon Tester
(D-Mont.), a centrist who is not part of the group. 'I don't know where that
is at this point.'" (Manu Raju, "Moderates Uneasy With Obama Plan," The
Politico, 3/3/09)

House Majority Leader Steny Hoyer (D-MD) Said Finding Votes For Obama's Budget
Will Be "Tough." "Obama is expected to send Congress a complete plan in April,
and Democratic leaders said they hope to approve it later this spring. But
House Majority Leader Steny H. Hoyer (D-Md.) predicted that finding the votes
will be 'tough.' With Democrats in control of both the White House and
Congress, their budget will have real meaning for the first time in 15 years,
he said, and lawmakers will fight hard to advance favored causes." (Lori
Montgomery, "In $3.6 Trillion Budget, Obama Signals Broad Shift In
Priorities," The Washington Post, 2/27/09)

-- Rep. Hoyer: "These are real votes, real consequences. . . .
You're playing with real money." (Lori Montgomery, "In
$3.6 Trillion Budget, Obama Signals Broad Shift In Priorities," The
Washington Post, 2/27/09)

Sen. Gregg: We Will Go Bankrupt:

Former Obama Nominee For Commerce Secretary Sen. Judd Gregg (R-NH): "This
Country Will Go Bankrupt." "'The practical implications of this is bankruptcy
for the United States,' Mr. Gregg said on CNN's 'State of The Union' on
Sunday. 'There's no other way around it. If we maintain the proposals which
are in this budget over the 10-year period that this budget covers, this
country will go bankrupt. People will not buy our debt; our dollar will become
devalued.'" (Tom LoBianco, "Gregg: Deficits Could Bring Bankruptcy," The
Washington Times, 3/23/09)

China Owns Roughly 9 Percent Of America's Debt:

The Current Debt Is Around $11 Trillion. "The debt now stands at around $11
trillion, with about $6.5 trillion owed to individuals, corporations and
governments and other lenders, foreign or domestic, while about $4.3 trillion
is owed to the funds for Social Security benefits, military and civil service
pensions and other government programs." (David Stout, "Much Bigger Deficits
Seen In Budget Office Forecast," The New York Times, 3/20/09)

China Is America's Biggest Foreign Creditor, Owning Roughly 9 Percent Of Our
Debt. "China is Washington's biggest foreign creditor, holding an estimated $1
trillion in U.S. government debt." (Christopher Bodeen, "Official Says China
To Continue Buying US Debt," The Associated Press, 2/23/09)

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