'We're Greece' in a Few Years: Sen. Gregg

If the US government doesn’t act soon to reduce the deficit and debt, it will become like Greece in a few years, Sen. Judd Gregg, (R-N.H.), told CNBC Wednesday.

"This nation is on a course where if we don’t do something about it, get federal situation, the fiscal policy [under control], we’re Greece. We’re a banana republic," said Gregg.

"Our status as a nation is threatened by what we’ve got coming at us in the area of deficit and debt. And it’s only a few more years, at the most, that we have to work with here before the market says, ‘Sorry, your currency is something we can not continue to defend.’ "

Gregg and Senator Evan Bayh, (D-Ind.), debated on CNBC the results of the midterm elections, in which Republicans took the House, while Democrats retained a razor-thin majority of the Senate.

“I happen to think the Tea Party is in the mainstream of where political thought is right now,” Gregg went on to say. “[It’s to] Get the deficit under control, get the debt under control and pass on to our children a country that is prosperous and secure. We’ve had a radical explosion in the size of government in the last two years: You’ve gone from 20 percent of GDP to 24 percent of GDP headed toward 28 percent of GDP. That has to be brought under control or basically we’re going to bankrupt the country."

Your Money Your Vote - A CNBC Special Report
Your Money Your Vote - A CNBC Special Report

"The American people intuitively understand that and the Tea Party expressed that,” Gregg added.

While some Tea Party favorites, such as Rand Paul, a Republican for the Senate from Kentucky, won on Tuesday, others, such as Sharron Angle, from Nevada, and Christine O’Donnell, from Delaware, lost.

Bayh said he thought the Tea Party was “incredibly helpful,” when it is part of the GOP coalition, but not when it nominates unelectable candidates.

“Two years ago we Democrats won independents by 8 percent. Last night, we lost independents by 15 percent or so," said Bayh. "So clearly the independents are where it’s at. And if you look at what’s bothering them, it’s the economy and deficits, that’s where we need to focus.”