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Fmr. CBO Director Douglas Holtz-Eakin on why Obama needs to take on a greater role in the budget talks to get a deal done.
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Our next guest says today's presidential news conference was more theater than reality.
Joining us from Washington DC the former Congressional Budget Office director now president of the American action forum.
Douglas Holtz -- good to have you with us.
-- -- First the president.
Saying that.
As you just heard bribes -- a number of times us this beautiful day of the president.
Segment.
People ought to be more like him staying at home taking care business there in Washington DC.
Be here.
You heard senator sessions I did that and they usually -- slush fund -- I'm sorry.
Today include the 33 fundraisers around the golf -- -- campaign stops in Iowa and elsewhere where you would why don't we that it you would want a president not to be well financed our our arrested Richard.
Look I I thought he came back and appeared to actually be genuinely out of touch with the state of play.
At least the things you said in the conference others as I said -- they're good theater but.
There's no proposal on the table -- looks like the four trillion dollars you talked about.
When he talked about what we're gonna have to entitlement reform just look -- yesterday when Joseph Lieberman and Tom were put out of Medicare reform in both.
Nancy Pelosi and Harry Reid blasted and when -- said that the Republican leaders had to go get taxes raised.
That that's actually at odds with that the political history that says when his party controlled the house in the senate when -- 59 votes in the senate.
They could raise taxes and did not there's no way that you can asked the publishers to get those votes so that's great theater but that's not reality.
It may not -- being.
It may be -- it may not -- -- reality either.
Ended in fact you may not be even close to a solution.
-- but the fact is we do nearer August 2 and if there's anything approximating reality and that date.
This government and this country could be facing some very serious consequences.
If if this president doesn't get very serious about resolving.
The issue what is likely to happen in your view.
I think you've got it exactly right in the ball is in president Obama's court he is the leader of this nation.
And he is the one who can explain to Democrats that the votes aren't there to raise taxes.
He will explain to them that he need to deal both for the good of the some financial markets and the economy but also his narrow political interest he doesn't need to have.
Continual reminders of his record on -- the deficit and spending which are now the election.
And if he's not successful politically they won't be so he's gonna have to explain that -- Go get a lot of democratic votes for a package to get -- past election.
And not raise taxes -- that's the only thing -- bring Republicans that there is a deal sitting there the president needs to get busy and get it how much.
Of this theater though is if you will bipartisan.
That is how much of this is.
Certainly in front of a calculus and algorithm.
On the part of both Republicans and Democrats.
Douglas that would say we're going to get just enough.
So that we can go into the 2012 elections but leave.
This this issue on resolved.
Given every appearance of a good.
Heart in good hearted earnest effort.
Just enough to placate disgruntled frustrated American voters how much of that is in this equation now all we.
We know there's some of that and all -- the Democrats in one week have said we're we're gonna raise taxes we're gonna cut taxes we're gonna reduce the -- we're gonna increase spending so.
They haven't figured out exactly.
What -- script has been if there's a lot of theater there.
On the Republican side you have some saying that what we're just not gonna raise the debt civilian and I simply believe that so mistaken -- to be dangerous that you can't do that that's just theater.
And then you've got the the outcome that says okay we'll do a little bit we'll get past election we'll have this fight again both sides I think participating in that.
Do you think the Republicans as they participate in that bipartisan effort.
You think the Republicans understand the consequences if they miscalculate.
Even at the margin here.
-- -- American people.
Are expecting what the electorate is expecting.
I hope -- -- miscalculations on either side I'm either on the side says we're not gonna be serious enough for political reasons.
Or god forbid you pass a very weak that's really increased -- financial markets decide you know.
-- I think it's really is not gonna get its act together and we see quick disruption not some -- that's out there couple years away so.
I think everyone needs to be cognizant of the downside risks here be serious about the nation's finances.
And we assume that someone in this administration has done for this president what.
I'm Robert Rubin did for president Bill Clinton explained.
The bond market has a very large large -- and all of this as well.
-- I -- never pretend said you know what goes on -- the treasured by at least in my eyes secretary Geithner understands.
The significance of -- and he's he's a man who does well -- -- the sectors -- when things meltdown all right.
Douglas Holtz -- from thanks for being with us we appreciate you up next.
