[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/07/06/art.biden.gi.afp.file.jpg caption ="'I think we're going to do a great deal better than anyone gives us credit for,' Biden said of Democrats' chances in the 2010 elections."]
(CNN) - Despite rampant speculation Democrats are in for a tough 2010 election cycle, Vice President Joe Biden is dismissing notions the party will witness a "grand debacle" come November.
"Reports of our demise are premature," Biden told Politico, while making a surprise July 4 visit to Iraq.
"I think we're going to do a great deal better than anyone gives us credit for. I do not see this grand debacle. Because by the time people walk into the booth, they're going to have to choose between two people," he added.
The vice president specifically singled out the currently-close races in Kentucky and Nevada as likely Democratic victories. In both states, Tea Party-backed candidates are running neck-and-neck with the Democratic contenders.
I think we can beat Rand Paul – -absolutely," said Biden of the Republican nominee in Kentucky who beat the GOP establishment candidate in May amid heavy support from Tea Party organizations.
The vice president also said Senate Majority Leader Harry Reid, D-Nevada, has a good shot at beating Sharron Angle, the onetime little-known state lawmaker who defeated several GOP opponents last month with the help of Tea Party activists.
"I give [Reid] a 55 percent chance or better," said Biden. Since their victories, both Paul and Angle have been besets by a series of embarrassing media interviews and have mostly stayed away from the national media.
In making his prediction, Biden also said Republicans have poorly articulated what they stand for, that President Obama has "kept his word getting troops home," that the economy will continue to grow, and fears among some about the effects of health care reform will not pan out.
Still, Biden conceded the continued economic conditions could hurt Democrats – who hold control in both houses of Congress as well as the White House.
"Right now, we're in our most vulnerable position," Biden conceded. "And that is that the American people, no matter what they think of the direction of the country – even if it's positive – a lot of them are left out there in a real difficult situation. We lost 8 million jobs because of this recession. And although we've created over 600,000 in the first six months of this year, we have a long way to go. And so people are dissatisfied because they're having trouble makin' it."