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CONGRESS SO THAT WE CAN ACT ON
THEM AND GET THESE THINGS
APPROVED AND GET AMERICAN
BUSINESSES EXPORT TO GO THESE
THREE COUNTRIES.
MR. PRESIDENT, I YIELD THE
FLOOR.
WITHOUT
OBJECTION, THE MATERIALS
REFERRED TO BY THE SENATOR WILL
BE ENTERED INTO THE RECORD.
MR. PRESIDENT, I
SUGGEST THE ABSENCE OF A QUORUM.
THE CLERK
WILL CALL THE ROLL.
CALL:
QUORUM CALL:
QUORUM CALL:
QUORUM CALL:
A SENATOR: MR. PRESIDENT.
THE
SENATOR FROM NORTH DAKOTA.
I ASK FURTHER
PROCEEDINGS UNDER THE QUORUM
CALL BE DISPENSED WITH.
WITHOUT
OBJECTION.
MR. PRESIDENT, WE
ARE NOW REACHING A CRITICAL HOUR
IN THE CONGRESS OF THE UNITED
STATES ON THE QUESTION OF
EXTENDING THE DEBT LIMIT OF THE
NATION AND OF FUNDAMENTALLY
DEALING WITH THE DEBT OF THE
NATION.
I DON'T THINK THERE IS ANY
SERIOUS PERSON IN EITHER BODY
THAT DOES NOT UNDERSTAND THAT WE
MUST DEAL WITH THE DEBT ITSELF
AS WE EXTEND THE DEBT LIMIT.
WE ARE BORROWING 40 CENTS OF
EVERY DOLLAR THAT WE SPEND.
THE GROSS DEBT OF THE UNITED
STATES WILL REACH 100% OF OUR
G.D.P. BY THE END OF THIS YEAR.
THE BEST ECONOMISTS IN THE
COUNTRY OF WHATEVER
PHILOSOPHICAL STRIPE ARE TELLING
US WE'RE ON AN UNSUSTAINABLE
COURSE THAT MUST BE CHANGED.
MR. PRESIDENT, IN THE MIDST OF
THIS, WE HAVE HAD THE HOUSE SO
FAR UNABLE TO SEND US A PACKAGE.
NOW WE'RE TOLD THEY DO HAVE THE
VOTES BECAUSE THEY HAVE ADDED A
BALANCED BUDGET TO THE
CONSTITUTION AS PART OF THEIR
PACKAGE.
MR. PRESIDENT, THE BALANCED
BUDGET THAT THEY HAVE PREVIOUSLY
PROPOSED IN THE HOUSE OF
REPRESENTATIVES CAN NEVER PASS
THE UNITED STATES SENATE, AT
LEAST AS THIS BODY IS CURRENTLY
CONSTITUTED.
AND IT SHOULD NOT PASS THIS
BODY.
IT IS DEEPLY FLAWED.
AND TO ATTACH THAT TO A MEASURE
THAT HAS TO PASS BOTH HOUSES
BEFORE TUESDAY OF NEXT WEEK
FRANKLY IS AN INDICATION OF A
LACK OF SERIOUSNESS ON THE PART
OF OUR COLLEAGUES IN THE HOUSE
OF REPRESENTATIVES.
ULTIMATELY, THERE HAS TO BE A
BIPARTISAN AGREEMENT.
OUR FRIENDS IN THE OTHER PARTY
CONTROL THE HOUSE OF
REPRESENTATIVES.
THE SENATE IS CONTROLLED BY MY
PARTY, THE DEMOCRATIC PARTY.
HOUSE.
WE HAVE A DEMOCRAT IN THE WHITE
NO SERIOUS PERSON CAN FAIL TO
UNDERSTAND THAT PUTTING A -- AN
AMENDMENT TO THE CONSTITUTION OF
THE UNITED STATES THAT IS DEEPLY
FLAWED INTO THAT PACKAGE
ABSOLUTELY GUARANTEES THAT IT
CANNOT PASS IN THIS CHAMBER.
THAT WOULD TAKE A TWO-THIRDS
VOTE.
I DON'T BELIEVE IT WOULD EVEN
COMMAND A SIMPLE MAJORITY HERE,
MUCH LESS A TWO-THIRDS VOTE.
SO HERE WE ARE AT THE 11th
HOUR AND PEOPLE IN THE OTHER
BODY SEEMINGLY ARE STILL NOT
SERIOUS ABOUT COPING WITH THE
CHALLENGE OF BOTH EXTENDING THE
DEBT LIMIT TO AVOID A DEFAULT
WHICH WOULD BE CATASTROPHIC AND
OF DEALING WITH THE DEBT ITSELF.
MR. PRESIDENT, I UNDERSTAND
IDEOLOGICAL RIGIDITY.
THE TIME FOR THAT IS PAST.
THE TIME NOW IS TO WORK TOGETHER
IN SOME REASONABLE WAY SO THAT
WE ADVANCE LEGISLATION THAT BOTH
EXTENDS THE DEBT LIMIT TO AVOID
THE CATASTROPHIC CONSEQUENCES OF
A DEFAULT AND TO DEAL WITH THE
DEBT THREAT ITSELF.
MR. PRESIDENT, "THE NEW YORK
STORY."
TIMES" ON WEDNESDAY HAD THIS
ON ALL LEVELS OF THE ECONOMY,
CONCERN ABOUT THE IMPASSE."
WHAT THEY WERE TALKING ABOUT IS
THE RATING AGENCIES SAYING IF WE
DON'T DO BOTH, IF WE DON'T
EXTEND THE DEBT LIMIT AND DEAL
EFFECTIVELY WITH THE DEBT
ITSELF, THEY'RE GOING TO
DOWNGRADE THE RATING OF OUR
CREDIT AS A COUNTRY.
MR. PRESIDENT, THE STORY GOES ON
TO SAY -- "ECONOMISTS AND
ANALYSTS ARE TRYING TO GAUGE THE
CONSUMERS.
COST TO THE ECONOMY AND THE
IF THE UNITED STATES LOSES ITS
SOLID GOLD CREDIT RATING, A MOVE
THAT APPEARS MORE LIKELY NOW
THAT THE STANDOFF IN WASHINGTON
OVER GOVERNMENT SPENDING HAS
CALCIFIED.
SOME ECONOMISTS SAY THE EFFECTS
OF LOWERING THE FEDERAL
GOVERNMENT'S CREDIT RATING TO AA
FROM AAA CAN BE MEASURED IN THE
BILLIONS OF DOLLARS, IN
INCREASED BORROWING COSTS FOR
THE GOVERNMENT AND IN THE
BILLIONS MORE THAT CONSUMERS,
CORPORATIONS, STATES AND
MUNICIPALITIES WILL HAVE TO PAY
FOR THEIR CREDIT.
IT ALSO COULD ERODE CONSUMER AND
BUSINESS CONFIDENCE, SLOWING
EVEN FURTHER THE ECONOMY AND JOB
CREATION."
ALREADY.
MR. PRESIDENT, IT'S STARTED
WE HAVE JUST LEARNED THE LATEST
NUMBERS ON ECONOMIC GROWTH.
THEY ARE A TEPID 1.3%.
MR. PRESIDENT, THIS UNCERTAINTY
BEING CREATED HERE BY A FAILURE
TO DEAL WITH OUR DEBT AND WITH
AN EXTENSION OF THE DEBT LIMIT
ARE CREATING A HEAD WIND FOR OUR
ECONOMY.
REDUCING ECONOMIC GROWTH,
SLOWING JOB CREATION, COSTING US
A STRONGER RECOVERY.
MR. PRESIDENT, I WANT TO REMIND
COLLEAGUES, FOR EVERY ONE
PERCENTAGE POINT INCREASE IN
INTEREST RATES, THAT ADDS
ADDS $1.3 TRILLION TO THE DEBT.
SO KICKING THIS CAN DOWN THE
ROAD, NOT FACING UP TO IT HAS
ENORMOUS CONSEQUENCES.
$1.3 TRILLION ADDED DEBT FOR
EVERY 1% INCREASE IN INTEREST
RATES, THIS IS JUST THE EFFECT
ON THE FEDERAL GOVERNMENT.
TRILLIONS MORE WOULD BE THE
EFFECT ON CONSUMERS, ON
COMPANIES, ON OTHER LEVELS OF
GOVERNMENT WITH AN INCREASE IN
INTEREST RATES.
MR. PRESIDENT, WHEN WE SEE THE
PROPOSAL BY THE SPEAKER THAT
APPARENTLY THE HOUSE IS NOW
PREPARED TO SEND US, IT HAS
FATAL FLAWS, AND HERE THEY ARE.
FIRST OF ALL, IT WOULD REPEAT
MONTHS.
THE DEFAULT CRISIS IN JUST SIX
THAT WOULD CONTINUE THE
UNCERTAINTY AND PUT THE ECONOMY
AT FURTHER RISK.
OUR FRIENDS ON THE OTHER SIDE
HAVE REPEATEDLY SAID HOW
UNCERTAINTY IS HURTING THIS
ECONOMY, AND NOW THEY WANT TO
CREATE THEMSELVES MORE
UNCERTAINTY.
IT MAKES NO SENSE.
MR. PRESIDENT, THE BOEHNER PLAN
INCLUDES SIGNIFICANTLY LESS
DEFICIT REDUCTION THAN DOES THE
REID PLAN.
THE BOEHNER PLAN, AS I
UNDERSTAND IT, HAS NOT BEEN ABLE
TO CALCULATE ITS NEWEST VERSION
FULLY.
IT WAS IN THE RANGE OF
OF $1 TRILLION OF SAVINGS.
MAJORITY LEADER REID'S PLAN IS
WELL OVER $2 TRILLION OF
SAVINGS.
THIRD, THE BOEHNER PLAN PROVIDES
NO FIREWALL BETWEEN SECURITY AND
NONSECURITY SPENDING.
THAT MEANS EVEN DEEPER CUTS ON
THE DOMESTIC SIDE OF THE LEDGER
BECAUSE WE ALL KNOW WHAT HAPPENS
IF YOU DON'T HAVE A FIREWALL.
AND FINALLY, IT REQUIRES AN
IRRESPONSIBLE BALANCED BUDGET
APPROACH THAT HAS BEEN CLEARLY
REJECTED HERE AND WILL BE REJECT
ED AGAIN.
THAT'S CERTAIN.
MR. PRESIDENT, STANDARD AND
POOR'S HAS WARNED AGAINST REPEAT
ED DEBT CEILING DEBATES.
HERE'S WHAT THEY HAVE SAID ON
JULY 26.
"WE WOULD BE CONCERNED IF WE
THOUGHT THE DEBT CEILING DEBATE
WOULD COME BACK AND BE OPEN AND
WE'D HAVE TO GO THROUGH ALL THIS
AGAIN AND AGAIN AND AGAIN.
THAT WOULD BE NEGATIVE IN OUR
VIEW."
MR. PRESIDENT, THIS IS THE
RATING AGENCY THAT DETERMINES
WHAT THE INTEREST RATES WILL BE
ON THE DEBT OF OUR COUNTRY.
NOT DIRECTLY BUT INDIRECTLY,
BECAUSE IF THEY WRITE DOWN OUR
CREDITWORTHINESS, THAT WILL
INCREASE INTEREST RATES.
SO THEY ARE SENDING US A VERY
CLEAR SIGNAL, DON'T DO THE
SPEAKER BOEHNER PLAN THAT HAS
ONLY A SIX-MONTH EXTENSION AND
REPEAT THIS WHOLE PROCESS AND
CREATE MORE UNCERTAINTY AND PUT
THE ECONOMY FURTHER AT RISK.
TO AVOID A U.S. CREDIT RATING
DOWNGRADE, THE S&P WANTS TO SEE
A BIPARTISAN DEBT REDUCTION
EFFORT.
NOT THE TOTALLY PARTISAN
APPROACH THAT SPEAKER BOEHNER
HAS FOR THE MOMENT CHOSEN TO
PURSUE.
MR. PRESIDENT, I DON'T KNOW WHAT
COULD BE MORE CLEAR.
THE OTHER BODY IS IN THE CONTROL
OF OUR FRIENDS IN THE OTHER
PARTY.
DEMOCRATS.
THIS BODY IS IN CONTROL OF THE
AT THE END OF THE DAY, WE HAVE
TO COME TOGETHER.
WE HAVE TO WORK TOGETHER.
NOW, I HAVE BEEN PART OF TWO
EFFORTS TO WORK TOGETHER.
LAST YEAR, THE FISCAL
COMMISSION, 18 OF US GIVEN THE
RESPONSIBILITY TO COME UP WITH A
CONTROL.
PLAN TO GET OUR DEBT UNDER
AT THE END OF THE DAY, 11 OF THE
18 AGREED ON A PLAN.
FIVE DEMOCRATS, FIVE REPUBLICANS
AND ONE INDEPENDENT.
FULLY BIPARTISAN.
I WAS PROUD TO BE PART OF THE 11
THAT AGREED TO THAT PLAN.
THIS YEAR, I HAVE BEEN PART OF
THE GROUP OF SIX, THREE
DEMOCRATS, THREE REPUBLICANS
THAT WERE ASKED BY ABOUT 30 OF
OUR COLLEAGUES TO SEE IF WE
COULD FIND A WAY TO IMPLEMENT
THE FINDINGS OF THE COMMISSION,
BECAUSE FOR THE COMMISSION'S
FINDINGS TO BE IMPLEMENTED, THEY
HAD TO HAVE A SUPER,
SUPERMAJORITY.
THEY HAD TO HAVE 14 OF THE 18
AGREE.
AND EVEN THOUGH WE HAD 11 OF 18,
IT WASN'T ENOUGH.
SO ABOUT 30 SENATORS MET AT THE
BEGINNING OF THIS YEAR, THE END
OF LAST AND ASKED A GROUP OF US
SIX, THREE DEMOCRATS, THREE
REPUBLICANS, TO SEE IF WE COULD
COME UP WITH A BIPARTISAN PLAN.
WE HAVE WORKED ALL YEAR,
AGREED.
HUNDREDS OF HOURS, AND WE HAVE
WE HAVE LAID OUT A PLAN FOR OUR
COLLEAGUES.
IT IS THE ONLY BIPARTISAN PLAN
BEFORE EITHER CHAMBER.
MR. PRESIDENT, SPEAKER BOEHNER
AT THIS LATE HOUR IS STILL
PURSUING A PLAN ONLY ON THE
REPUBLICAN SIDE OF THE AISLE AND
ONLY IN ONE CHAMBER.
THAT CAN'T POSSIBLY BE A RECIPE
FOR SUCCESS.
MR. PRESIDENT, DAVID BEERS,
STANDARD AND POOR'S GLOBAL HEAD
OF SOVEREIGN RATINGS SAID THIS
ON JULY 26 -- "WE WILL MEASURE
THE DEAL ON A NUMBER OF
PARAMETERS.
ONE IS IS IT CREDIBLE?
AND CORRECT, AMONG OTHER THINGS,
MEANS TO US THERE HAS TO BE SOME
BUY-IN ACROSS THE POLITICAL
DIVIDE, ACROSS BOTH PARTIES,
BECAUSE POLITICS CAN AND WILL
CHANGE GOING FORWARD.
AND IF THERE'S OWNERSHIP BY BOTH
SIDES OF THE PROGRAM, THEN THAT
WOULD GIVE US MORE CONFIDENCE.
IT'S NOT JUST ABOUT THE NUMBER.
IT'S ABOUT THE ALL-IN INTENT."
MR. PRESIDENT, ARE OUR
COLLEAGUES LISTENING?
THE SOLUTION CANNOT BE FOUND ON
JUST ONE SIDE OF THE AISLE IN
ONE CHAMBER.
THIS IS GOING TO REQUIRE
BIPARTISAN, BICAMERAL
COOPERATION.
WE'RE GOING TO HAVE TO ACT LIKE
ADULTS.
NOT LIKE KIDS IN A SCHOOL YARD
POINTING FINGERS, SPREADING
RUMORS, SPREADING BLAME.
THAT WILL NOT LEAD TO SUCCESS.
MR. PRESIDENT, HERE'S THE
CIRCUMSTANCE WE FACE.
THE RED LINE IS THE SPENDING
BACK 60 YEARS.
LINE OF THE UNITED STATES GOING
THE GREEN LINE IS THE REVENUE
LINE OF THE UNITED STATES GOING
BACK 60 YEARS.
AND WHAT YOU CAN SEE, THE
REVENUE OF THE UNITED STATES AS
A SHARE OF OUR NATIONAL INCOME
IS THE LOWEST IT HAS BEEN IN 60
YEARS.
SPENDING AS A SHARE OF OUR
NATIONAL INCOME IS THE HIGHEST
IT HAS BEEN IN 60 YEARS.
REVENUE IS THE LOWEST, SPENDING
IS THE HIGHEST.
THAT'S WHY WE HAVE RECORD
DEFICITS.
MR. PRESIDENT, CLEARLY YOU HAVE
TO WORK BOTH SIDES OF THE
EQUATION TO GET A SOLUTION.
SOME OF OUR FRIENDS ON THE OTHER
REVENUE.
SIDE ARE SAYING DON'T TOUCH
SOME OF OUR FRIENDS ON BOTH
SIDES ARE SAYING AH, AND DON'T
TOUCH ENTITLEMENTS.
DON'T TOUCH MEDICARE, DON'T
TOUCH SOCIAL SECURITY, DON'T
TOUCH MEDICAID.
MR. PRESIDENT, IF YOU CAN'T
TOUCH REVENUE AND YOU CAN'T
TOUCH THE ENTITLEMENTS, YOU
CAN'T SOLVE THE PROBLEM.
BY DEFINITION.
WHEN YOU'RE BORROWING 40 CENTS
OF EVERY DOLLAR AND YOU EXCLUDE
ALL REVENUE -- THAT'S HALF THE
EQUATION -- AND YOU EXCLUDE 60%
OF FEDERAL SPENDING, IF YOU
ELIMINATED ALL THE REST OF
FEDERAL SPENDING, EVERY DIME
FOR DEFENSE, FOR NONDEFENSE
DISCRETIONARY, IF YOU
ELIMINATED EVERY DIME, YOU
WOULDN'T SOLVE THE PROBLEM.
MR. PRESIDENT, AT SOME POINT
HERE WE'VE GOT TO GET SERIOUS
AND REAL WITH THE AMERICAN
PEOPLE.
THE BALANCED BUDGET AMENDMENT
THAT OUR COLLEAGUES IN THE HOUSE
SENT US PREVIOUSLY THAT'S
ALREADY BEEN REJECTED HERE
ONCE, NOW THEY'RE PUTTING IN
THE PACKAGE TO SEND US HERE
AGAIN AT THE 11th HOUR, A
BALANCED BUDGET AMENDMENT THAT
IS AS DEEPLY FLAWED AS ANY
AMENDMENT THAT I HAVE SEEN IN 25
YEARS IN THIS CHAMBER.
LET ME REVIEW WHAT OUR FRIENDS
ON THE OTHER SIDE SENT US IN A
BALANCED BUDGET AMENDMENT THAT
WAS REJECTED HERE JUST IN THE
LAST FEW WEEKS.
IT WOULD RESTRICT THE ABILITY TO
RESPOND TO ECONOMIC DOWNTURNS.
MEANING YOU WOULD COMPOUND THE
DECLINE.
THAT'S BAD ECONOMICS, AND IT'S
NOT GOING TO PASS.
NUMBER TWO, IT USES SOCIAL
SECURITY FUNDS TO CALCULATE
BALANCE, AND SUBJECTS THAT
PROGRAM TO THE SAME CUTS AS
OTHER FEDERAL SPENDING.
EVEN THOUGH SOCIAL SECURITY HAS
ITS OWN TRUST FUND AND IS
SEPARATELY FUNDED.
NUMBER THREE, IT SHIFTS THE
ULTIMATE DECISIONS ON BUDGETING
TO UNELECTED AND UNACCOUNTABLE
JUDGES.
AND FOURTH, IT REQUIRES A STATE
RATIFICATION PROCESS THAT COULD
TAKE YEARS TO COMPLETE.
WE DON'T HAVE YEARS TO WAIT FOR
A STATE RATIFICATION PROCESS FOR
A CONSTITUTIONAL AMENDMENT.
WE NEED TO MAKE THESE SPENDING
AND REVENUE DECISIONS OURSELVES
AND DO IT NOW.
IT'S OUR RESPONSIBILITY.
LET'S NOT BE WAITING FOR THE
STATES TO RATIFY A
CONSTITUTIONAL AMENDMENT BEFORE
WE TAKE THE ACTION THAT IS
NECESSARY.
MR. PRESIDENT, THE BALANCED
BUDGET AMENDMENT THAT THE HOUSE
PREVIOUSLY SENT US HAS THE RISK
OF TURNING A RECESSION INTO A
DEPRESSION.
WHY DO I SAY THAT?
BECAUSE THERE IS NO PROVISION IN
THE AMENDMENT THAT THEY SENT US
FOR AN ECONOMIC DOWNTURN AS
BEING AN EXEMPTION FROM THE
BALANCED BUDGET REQUIREMENT.
THAT IS HOOVER ECONOMICS ALL
OVER AGAIN.
HOW MANY TIMES DO WE HAVE TO
LEARN THE HARSH LESSON THAT WHEN
WE ARE IN AN ECONOMIC FREE
FALL, THE ONLY ENTITY BIG
ENOUGH TO PULL US OUT IS THE
COLLECTIVE ORGANIZATION OF OUR
GOVERNMENT?
THAT IS THE ONLY PLACE THAT HAS
THE MUSCLE TO PREVENT A
RECESSION FROM TURNING INTO A
DEPRESSION, AND THE BALANCED
BUDGET AMENDMENT OUR COLLEAGUES
CEPT US BEFORE WOULD ABSOLUTELY
LOCK DOWN THE FEDERAL
GOVERNMENT'S ABILITY TO RESPOND.
THAT WOULD BE A PROFOUND
MISTAKE, AND CONTRADICT ALL WE
HAVE LEARNED IN ECONOMICS SINCE
THE GREAT DEPRESSION.
THIS IS WHAT NORM ANN ORNSTEIN
AT THE AMERICAN ENTERPRISE
INSTITUTE SAID ABOUT THIS
CONSTITUTIONAL AMENDMENT.
HE CALLED IT 5, QUOTE, "REALLY
DUMB IDEA."
THIS IS WHAT HE SAID.
"FEW IDEAS ARE MORE SEDUCTIVE ON
THE SURFACE AND MORE DESTRUCTIVE
IN REALITY THAN A BALANCED
BUDGET AMENDMENT.
HERE'S WHY -- NEARLY ALL OF OUR
REQUIREMENTS.
STATES HAVE BALANCED BUDGET
THAT MEANS WHEN THE ECONOMY
SLOWS, STATES ARE FORCED TO
RAISE TAXES OR SLASH SPENDING AT
JUST THE WRONG TIME, PROVIDING
A FISCAL DRAG WHEN WHAT IS
NEEDED IS COUNTERCYCLICAL POLICY
TO STIMULATE THE ECONOMY.
IN FACT, THE FISCAL DRAG FROM
THE STATES IN 2009 AND 2010 WAS
BARELY COUNTERED BY THE FEDERAL
STIMULUS PLAN.
THAT MEANT THE FEDERAL STIMULUS
PROVIDED WAS NOWHERE NEAR WHAT
WAS NEEDED BUT FAR BETTER THAN
DOING NOTHING.
NOW, IMAGINE THAT SCENARIO WITH
A FEDERAL DRAG INSTEAD."
MR. PRESIDENT, "THE WASHINGTON
POST" WROTE AN EDITORIAL ABOUT
THE HOUSE BALANCED BUDGET
AMENDMENT HEADLINED "A BAD IDEA
RETURNS."
REWRITING THE CONSTITUTION IS
THE WRONG WAY TO DEAL WITH THE
DEBT.
EDITORIAL.
HERE'S WHAT THEY SAID IN THEIR
"WORSE YET, THE LATEST VERSION
WOULD IMPOSE AN ABSOLUTE CAP ON
SPENDING AS A SHARE OF THE
ECONOMY.
IT WOULD PREVENT FEDERAL
EXPENDITURES FROM EXCEEDING 18%
OF THE GROSS DOMESTIC PRODUCT IN
ANY YEAR.
MOST UNFORTUNATELY, THE
AMENDMENT LACKS A CLAUSE LETTING
THE GOVERNMENT EXCEED THAT LIMIT
TO STRENGTHEN A STRUGGLING
ECONOMY.
NO MATTER HOW SHAKY THE STATE OF
THE UNION, POLICYMAKERS WOULD
BE PREVENTED FROM ADOPTING
EMERGENCY SPENDING SUCH AS THE
EXTENSION OF UNEMPLOYMENT
INSURANCE, AND OTHER
COUNTERCYCLICAL EXPENSES THAT
HAVE HELPED CUSHION THE BELOW OF
THE CURRENT ECONOMIC -- BLOW OF
THE CURRENT ECONOMIC DOWNTURN."
MR. PRESIDENT, IT DOESN'T STOP
THERE.
THIS IS WHAT SENATOR McCAIN
SAID ON THE REPUBLICAN BALANCED
BUDGET AMENDMENT PROPOSAL ON
JULY 27.
"WHAT IS AMAZING ABOUT THIS,
SOME MEMBERS ARE BELIEVING WE
CAN PASS A BALANCED BUDGET
AMENDMENT TO THE CONSTITUTION IN
THIS BODY WITH ITS PRESENT
REPRESENTATION AND THAT IS
FOOLISH.
THAT IS WORSE THAN FOOLISH.
THAT IS DECEIVING MANY OF OUR
CONSTITUENTS.
THAT IS NOT FAIR TO THE AMERICAN
PEOPLE TO HOLD OUT AND SAY WE
WILL NOT AGREED TO RAISING THE
DEBT LIMIT UNTIL WE PASS A
BALANCED BUDGET AMENDMENT TO THE
CONSTITUTION.
IT IS UNFAIR.
IT IS BIZARRO.
MAYBE SOME PEOPLE WHO HAVE BEEN
IN THIS BODY SIX OR SEVEN MONTHS
OR SO BELIEVE THAT.
OTHERS KNOW BETTER.
IT IS TIME WE LISTENED TO THE
MARKETS.
CONSTITUENTS.
IT'S TIME WE LISTENED TO OUR
MOST OF ALL, IT'S TIME WE
LISTENED TO THE AMERICAN PEOPLE
AND SIT DOWN AND SERIOUSLY
NEGOTIATE SOMETHING."
SENATOR McCAIN HAD IT EXACTLY
RIGHT.
SENDING US A DEEPLY FLAWED
BALANCED BUDGET AMENDMENT TO THE
CONSTITUTION OF THE UNITED
STATES AT THE 11th HOUR IS NOT
DESIGNED TO ACHIEVE A RESULT.
IT IS ACHIEVED, IT IS DESIGNED
TO ACHIEVE A HEADLINE.
A BUMPER STICKER SLOGAN THAT
PROBLEM.
WILL NOT HELP US SOLVE THE
MR. PRESIDENT, HERE'S WHAT A
TOP ECONOMIC ADVISER TO FORMER
PRESIDENT REAGAN SAID ABOUT THE
HOUSE BALANCED BUDGET AMENDMENT.
HE SAID AND I QUOTE, "-- THIS
IS BRUCE BARTLETT A FORMER
REAGAN ADMINISTRATION TOP
ECONOMIC ADVISEOR.
AND I QUOTE HIM.
"I HAVE PREVIOUSLY EXPLAINED THE
IDIOCY OF RIGHT-WING ADVOCATES
OF A BALANCED BUDGET AMENDMENT.
HOWEVER, THE NEW REPUBLICAN
BALANCED BUDGET PROPOSAL IS
ESPECIALLY DIMWITTED.
IN SHORT, THIS IS QUITE
POSSIBLY THE STUPIDEST
CONSTITUTIONAL AMENDMENT I THINK
I HAVE EVER SEEN.
IT LOOKS LIKE IT WAS DRAFTED BY
A COUPLE OF INTERNS ON THE BACK
OF A NAPKIN.
EVERY SENATOR CO-SPONSORING THIS
BALANCED BUDGET AMENDMENT SHOULD
BE ASHAMED OF THEMSELVES."
THAT IS FROM A FORMER TOP
ECONOMIC ADVISOR TO RONALD
REAGAN.
IS ANYBODY LISTENING?
IS ANYBODY PAYING ATTENTION TO
HOW FAR OFF BASE THINGS HAVE
SLIPPED IN THE OTHER BODY, TO
SEND US AT THIS MOMENT, AT THIS
CRITICAL JUNCTURE A PLAN THAT
HAS ABSOLUTELY NO CHANCE OF
PASSING IN THIS BODY, AND
SHOULD NOT?
MR. PRESIDENT, WHAT IS SO
DEEPLY FLAWED?
IN ADDITION TO THE OTHER POINTS
I'VE MADE, THE BALANCED BUDGET
AMENDMENT THAT THE HOUSE
REPUBLICANS CEPT US EARLIER --
SENT US EARLIER SET A SPENDING
CAP OF 18% OF G.D.P.
WELL, LET'S ADD UP WHAT THAT
WOULD MEAN.
YOU CAN SEE HERE SOCIAL SECURITY
IS THE RED BAND.
THAT'S ABOUT 5% OF G.D.P.
IF YOU ADD DEFENSE AND ALL OTHER
NONHEALTH CARE SPENDING THAT
G.D.P.
TAKES YOU UP TO ABOUT 16.5% OF
INTEREST ON THE DEBT TAKES YOU
TO OVER 18% OF G.D.P.
YOU NOTICE WHAT'S MISSING HERE?
MEDICARE.
IN THE REPUBLICAN PLAN, THAT
THEY SENT TO US, WITH A
SPENDING CAP OF 18% OF G.D.P.,
IF YOU FUND SOCIAL SECURITY, IF
YOU FUND DEFENSE AND OTHER --
AND OTHER NON-HEALTH SPENDING,
AND YOU FUND INTEREST ON THE
DEBT, THERE'S NO MONEY LEFT.
THERE'S NO MONEY FOR MEDICARE.
THERE'S NO MONEY FOR MEDICAID.
THERE IS NO MONEY FOR ANY HEALTH
CARE SPENDING.
MR. PRESIDENT, THAT'S WHAT THE
HOUSE OF REPRESENTATIVES SENT US
JUST IN THE LAST SEVERAL WEEKS
AS A BALANCED BUDGET AMENDMENT
TO THE CONSTITUTION OF THE
UNITED STATES.
WHEN SOME OF OUR SIDE CALLED IT
CUT, CAP AND KILL MEDICARE,
THEY WEREN'T KIDDING.
BECAUSE IF YOU ADD IT UP, IT
DOESN'T ADD UP.
MR. PRESIDENT, NOT ONLY THAT,
THE BALANCED BUDGET AMENDMENT
OUR COLLEAGUES IN THE HOUSE SENT
US JUST IN THE LAST FEW WEEKS
ALSO SAID IT WOULD TAKE A
TWO-THIRDS VOTE TO GET ANY
ADDITIONAL REVENUE, EVEN THOUGH
REVENUE IS THE LOWEST IT HAS
BEEN IN 60 YEARS.
THEY WOULD APPLY A TWO-THIRDS
REQUIREMENT TO GET MORE REVENUE.
REALLY.
SO THEY WOULD PROTECT WITH A
TWO-THIRDS VOTE REQUIREMENT
EVERY TAX SCAM, EVERY OFF-SHORE
TAX HAVEN, EVERY TAX SHELTER
CURRENTLY BEING USED BY SOME TO
AVOID AND EVADE THE TAXES THEY
OWE OUR COUNTRY.
I'VE SHOWN THIS PICTURE ON THE
FLOOR OF THE SENATE MANY TIMES.
THIS IS A LITTLE BUILDING DOWN
IN THE CAYMAN ISLANDS.
A LITTLE FIVE-STORY BUILDING
THAT CLAIMS TO BE HOME TO 18,857
COMPANIES.
THEY ALL SAY THIS IS THEIR
BUSINESS HEADQUARTERS.
I'VE SAID THAT'S THE MOST
EFFICIENT BUILDING IN THE WORLD.
A LITTLE FIVE-STORY BUILDING
DOWN THERE AND IT'S THE
HEADQUARTERS OF 18,000
COMPANIES?
ANYBODY BELIEVE THAT?
ANYBODY BELIEVE THAT 18,000
COMPANIES ARE OPERATING OUT OF
THAT LITTLE BUILDING DOWN IN THE
CAYMAN ISLANDS?
THEY'RE NOT OPERATING THEIR
BUSINESSES OUT OF THERE.
THEY ARE ENGAGED IN A GIANT TAX
SCAM TO MAKE ALL THE REST OF US
PICK UP THEIR RESPONSIBILITIES.
ALL OF US WHO PAY WHAT WE OWE
ARE GETTING STUCK BY THE
COMPANIES THAT ARE HIDING OUT IN
THIS LITTLE BUILDING DOWN IN THE
CAYMAN ISLANDS, AVOIDING THE
TAXES THAT THEY OWE OUR COUNTRY.
BECAUSE THERE ARE NO TAXES DOWN
IN THE CAYMAN ISLANDS SO THEY
OPERATE OUT OF THIS LITTLE
BUILDING DOWN THERE, FIVE-STORY
BUILDING, 18,000 COMPANIES.
AND THEY AVOID PAYING THE TAXES
THAT THEY OWE AND STICK ALL THE
REST OF US WITH THE
RESPONSIBILITY.
THAT'S NOT RIGHT.
AND THE CONSTITUTIONAL AMENDMENT
THAT OUR COLLEAGUES IN THE HOUSE
OF REPRESENTATIVES SENT US WOULD
PROTECT THAT BEHIND A WALL OF A
TWO-THIRDS VOTE, WHICH MEANS
YOU'D HAVE AN IMPOSSIBLE TIME
EVER FIXING THIS PROBLEM.
IT'S HARD TO GET A 60% VOTE
AROUND HERE, MUCH LESS
TWO-THIRDS.
THEY WOULD PROTECT EVERY
OFF-SHORE TAX HAVEN, EVERY
ABUSIVE TAX SHELTER, EVERY
UNFAIR TAX PREFERENCE THAT'S IN
THE CURRENT CODE BECAUSE THEY
WOULD REQUIRE A 2/3 VOTE TO
CHANGE IT.
MR. PRESIDENT, THAT FLAWED
AMENDMENT IS NOT GOING TO PASS
THE UNITED STATES SENATE.
NOT NOW, NOT LATER THIS YEAR,
NOT NEXT YEAR, BECAUSE IT
ITSELF WOULD REQUIRE A
TWO-THIRDS VOTE.
IT IS NOT GOING TO HAPPEN.
SO I'D SAY TO OUR COLLEAGUES IN
THE OTHER CHAMBER, SENDING US A
DEEPLY FLAWED CONSTITUTIONAL
TOTALLY PARTISAN APPROACH WITH A
AMENDMENT IS NOT GOING TO WORK.
IT IS NOT GOING TO HELP SOLVE
THE PROBLEM.
AND NOW IS THE FINAL FOR US TO
JOIN IN A SERIOUS DIALOGUE ABOUT
SOLVING THE PROBLEM, SOLVING THE
DEBT THREAT OVERHANGING THE
COUNTRY, WHICH WILL REQUIRE NOT
A TRILLION-DOLLAR PACKAGE, AS IS
IN THE HOUSE OFFERING, BUT A
$4 TRILLION PACKAGE.
THE OCCUPANT OF THE CHAIR WELL
KNOWS OF WHAT I SPEAK.
HE WAS GOVERNOR OF WEST VIRGINIA
AND HE DEALT WITH A *** CAL
CRISIS IN HIS STATE AND HE
GUIDED HIS STATE THROUGH THAT
CRISIS OF THE NOT JUST BY
OPERATING ON ONE SIDE OF THE
AISLE, BUT BY WORKING TOGETHER
WITH PEOPLE ON BOTH SIDES TO
COME UP WITH SOLUTIONS.
NOT POLITICAL SLOGANS.
WE ARE WAY BEYOND THAT.
WE ARE WITHIN DAYS OF A DEFAULT
ON THE DEBT OF THE UNITED STATES
THAT WOULD HAVE CATASTROPHIC
CONSEQUENCES FOR THE ECONOMY OF
OUR COUNTRY.
IT'S TIME.
IT'S TIME, COLLEAGUES, TO COME
TOGETHER TO DO SOMETHING THAT
CAN PASS, TO DEAL, YES, WITH THE
DEBT LIMIT BUT ALSO TO DEAL WITH
THE DEBT ITSELF.
IT WILL BE AN EMPTY GESTURE IF
WE JUST EXTEND THE DEBT LIMIT
AND WE DON'T DEAL WITH THE DEBT
ITSELF.
NOW, OUR LEADER, TO HIS CREDIT,
HAS PUT SOMETHING TOGETHER THAT
BEGINS TO TAKE IDEAS FROM BOTH
SIDES OF THE AISLE TO TRY TO
RESOLVE THIS CRISIS.
IT WOULD SAVE THE NATION FROM AN
IMMEDIATE ECONOMIC CRISIS.
IT WOULD PROVIDE A SIGNIFICANT
DOWN PAYMENT ON DEFICIT
REDUCTION -- MORE THAN
$2 TRILLION -- AND IT WOULD PUT
IN PLACE A SPECIAL JOINT
CONGRESSIONAL COMMITTEE, EQUALLY
DIVIDED, DEMOCRATS AND
REPUBLICANS, TO FIND ADDITIONAL
SAVINGS.
AND THERE IS NO NEW REVENUE IN
THE PLAN.
OUR FRIENDS ON THE OTHER SIDE
HAVE THUS FAR SAID, AT LEAST IN
THE HOUSE OF REPRESENTATIVES,
THEY CAN ACCEPT NO NEW REVENUE,
NONE, NOT A PENNY.
SO OUR LEADER HAS SAID OKAY, I
DON'T LIKE THAT BUT IF THAT'S
YOUR LINE IN THE SAND FOR RIGHT
NOW, WE WILL ACCEPT IT SO THAT
WE CAN FIND A SOLUTION THAT BOTH
SIDES CAN SUPPORT.
NO NEW REVENUE, MORE THAN A
TRILLION DOLLARS -- MORE THAN
$2 TRILLION OF SPENDING CUTS,
AND A SPECIAL JOINT COMMITTEE TO
COME UP WITH A PLAN TO ACHIEVE
EVEN GREATER SAVINGS.
THAT'S A PRETTY GOOD OFFER TO
THE OTHER SIDE TO SAY, WE HEAR
YOU, WE WANT TO WORK WITH YOU
BECAUSE WE NEED A SOLUTION.
MR. PRESIDENT, WE'RE JUST DAYS
AWAY FROM A TRUE CRISIS, ONE
THAT WOULD BE SELF-INFLICTED.
COLLEAGUES, LET'S NOT GO THERE.
LET'S COME TOGETHER.
PAST.
WE'VE SHOWN WE CAN DO IT IN THE
WE NEED TO DO IT NOW.
NOT WITH BLAME, NOT WITH FINGER
POINTING BUT BY SAYING THIS IS A
TIME TO JOIN TOGETHER, TO STAND
SHOULDER TO SHOULDER TO PREVENT
IRREPARABLE DAMAGE BEING DONE TO
OUR COUNTRY.
I ASK MY COLLEAGUES, NOW, NOW IS
THE TIME, THIS DAY WE'VE GOT TO
FIND A WAY TO COME TOGETHER.
I THANK THE CHAIR AND YIELD THE
FLOOR.
NOTE THE ABSENCE OF A QUORUM.
THE CLERK
WILL CALL THE ROLL.