[Congressional Record Volume 141, Number 23 (Monday, February 6, 1995)]
[House]
[Pages H1215-H1216]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                           BAILOUT OF MEXICO

  The SPEAKER pro tempore (Mr. Nussle). Under the Speaker's announced 
policy of January 4, 1995, the gentleman from Kentucky [Mr. Bunning] is 
recognizd during morning business for 5 minutes.
  Mr. BUNNING. Mr. Speaker, article I of the U.S. Constitution vests 
the power of the purse in the Congress. Unfortunately, the President of 
the United States has taken it upon himself to do an end run around the 
Constitution, the Congress, and the American people to bail out Mexico.
  Mr. Clinton has pushed the barriers past the breaking point. He is 
basing his power grab on a twisted reading of his authority under the 
Gold Reserve Act of 1934. That is the law which established the 
Exchange Stabilization Fund that Mr. Clinton has raided to save Mexico.
  The Exchange Stabilization Fund was not meant for the kind of 
shenanigans that Mr. Clinton is trying to pull. It was designed to 
ensure that we would have an orderly and stable system of exchange 
rates.
  In other words, the Gold Reserve Act gives the President authority to 
stabilize the U.S. dollar and protect its value. It does not give the 
President the authority to prop up the currency of Mexico.
  It seems that Mr. Clinton needs to take a refresher course in 
constitutional law. Only Congress has the authority to appropriate 
money.
  Apparently, the chairman of the Federal Reserve, Alan Greenspan, 
doesn't think too much of Mr. Clinton's bailout scheme either.
  The Washington Times reported on February 1 that the Exchange 
Stabilization Fund, the IMF and the BIS do not have the resources to 
deal with Mexico's problems. He went on to say that the bailout should 
be addressed by the political leaders of the country because of its 
broad implications.
  Mr. Greenspan is not alone in thinking that this financing scheme is 
a multibillion-dollar disaster waiting to happen.
  The Hertigage Foundation had warned that this bailout was a bad deal 
as early as January 25. A study by Heritage warned,

       The proposed loan guarantees may bail out Mexico this year, 
     but they will not prevent another crisis unless the Mexican 
     Government corrects the fundamental structural problems that 
     caused the peso's collapse.

  Our financial partners in Europe seem to understand the problem. When 
it came to a vote at the International Monetary Fund, Germany, Britain, 
Denmark, the Netherlands, Belgium, and Switzerland all abstained from 
voting rather than support Mr. Clinton's plan.
  I applaud my colleague, Mr. Taylor of Mississippi, for pushing the 
envelope on this issue by introducing a privileged resolution that will 
put the House on record as to where we stand on this bailout.
  His resolution will put us on track to determine whether the 
President has acted outside the scope of his authority.
  We have all sworn to defend the Constitution of the United States. If 
the President is wrongly seizing power from the legislative branch, it 
is our duty to stop him.
  Mr. Taylor's privileged resolution is just the thing to start the 
inquiry into what I believe may be the power grab of our time. 
Congress, not the President or the Courts, is charged with the power to 
spend the money.
  [[Page H1216]] We cannot sit on our hands and watch the President 
shred the Constitution and ignore the will of the Representatives of 
the American people. We must let everyone know that this body looks out 
for the interests of the American people, not the Government of Mexico.


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