[Congressional Record Volume 157, Number 36 (Thursday, March 10, 2011)]
[Senate]
[Pages S1528-S1530]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FISCAL RESPONSIBILITY
Mr. KIRK. Mr. President, We are borrowing over $5 billion per day.
That's $35 billion borrowed per week to run our government, totaling
over $1.5 trillion in borrowed money just to run for a year.
Harvard's great economic historian, Niall Ferguson, noted that the
decline of a country can be marked when it pays its moneylenders more
than its army. His classic case comes from the French monarchy of the
1780s who failed to make interest payments on
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their debt, causing the financial collapse that triggered the
Revolution. Recently, Carmen Reinhard and Kenneth Rogoff wrote a
brilliant book called ``This Time is Different, Eight Centuries of
Financial Folly.'' Their vast study revealed that most government
officials believe they are always unique and different, causing them to
make the same mistakes that crippled past nations and empires.
Using Ferguson's tipping point, where are we today?
This year, the total cost of maintaining our army will equal $137
billion. This same year, we will pay $225 billion in interest to our
money lenders for the use of $14 trillion borrowed from China, Japan
and elsewhere. The startling conclusion is that we have already passed
Ferguson's tipping point by paying America's money lenders more than
our own Army.
It gets worse.
In just 6 years, the administration says that we will have to pay
over $661 billion to our money lenders for interest on our rapidly
expanding debt. With the expected cost of our Army at $195 billion, our
Air Force at $201 billion and our Navy/Marines at $217 billion, the
total cost of $613 billion to provide for our common defense will be
smaller than the $661 billion due to the money lenders. In simple
economic terms, we will be forced to pay our lenders their interest
money first, before caring for our own safety, or risk seeing the value
of the dollars in our own wallets disappear.
Remember, these numbers are optimistic. They assume no severe spike
in interest costs and no other war.
Recently, the Senate agonized over a short-term, 2-week spending bill
that made a $4 billion cut to spending. We should see that bill's cuts
as modest knowing that we already pay $616 million daily in interest
and over $4 billion per week. In sum, the cuts of the 2-week bill saved
just 1 week of interest payments.
As dire as this situation is, there is a bright side. Our country has
seen this movie before. Washington, Lincoln and Roosevelt all
accumulated economy-crushing debts as the fate of the United States
hung in the balance. Our best example of what to do next comes from our
own grandparents, rightly called the ``Greatest Generation.''
Tom Brokaw coined the title for Americans of the 1930s and 1940s who
defeated the Depression, Japanese and Nazis simultaneously. I would add
a fourth, largely unnoticed victory that Brokaw missed. After three
great victories for freedom, our grandparents spent the next 20 years
paying the debts incurred to win the contests of the Depression,
Pacific and Europe. Their accumulated debts of 1946 totaled over 120
percent of our national income. Economists report that between economic
growth and some inflation, the Greatest Generation reduced the
crippling World War II debts that secured our victory during the late
1940s and 1950s. The return to more fiscally responsible government
sparked an economic boom that built the super power called the United
States of America.
The lesson of history is clear. Each generation of Americans faces
conflict, war and debt. Each generation is tested. The looming debt
crisis facing this government is our generation's test. While some
government officials and bankers may still counsel ineffective action
saying ``we owe this money to ourselves'' or ``because the dollar is
the reserve currency, we can owe this amount,'' we know that the crisis
we face is not that different from the ones that crippled other
nations. With spending cuts and discipline we can master this danger,
as our grandparents did. The need to do the hard things, like
entitlement reform, is similar to the dramatic moves our grandparents
made to secure our future.
But there is one difference between us and other nations. From the
dawn of our revolution, the United States became the greatest force for
human liberty and individual dignity ever known. The U.S. ended
slavery, gave women the right to vote and spread freedom across Europe,
Latin America and Asia. We are now challenged by 21st century world
views in the Middle East and China that do not hold the western value
of the individual as high as we do. It is therefore doubly important to
do the work needed to reduce spending and balance the books so that we
restore the vitality of a free people and their cause of expanding
liberty and individual dignity.
Next time you talk to a member of the Greatest Generation, do not
just say thank you. Ask them for advice on how to trim budgets and
restore growth in the face of extraordinary debts, just as they did.
I yield the floor and I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. VITTER. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. VITTER. Mr. President, I too take the floor of the Senate to urge
all of us, Democrats and Republicans alike, to focus on the single
biggest domestic threat to our country, our single greatest challenge
in the eyes of every Louisianan and every American I know, and that is
to stop this runaway spending and debt.
Americans all around the country, certainly Louisianans all around my
State, understand this is a grave threat to our economic future. It is
not some vague threat to generations two and three away from us. This
is an immediate threat because the path of spending and debt we are on
is completely unsustainable.
For example, we must come together in a bipartisan way. We must act.
We must solve this real and pressing problem before it is an immediate
crisis. We should clearly do that well before any need for an increase
in the debt limit arises, well before this Congress reaches a crisis
atmosphere over the need for an increase in the debt limit.
For all of these reasons, I have joined with many of my colleagues. I
sent the majority leader a letter today. First, let me thank my
colleagues who joined me on the letter: Senators Sessions, Rubio,
DeMint, Paul, Lee, Toomey, and Ensign. The letter is very simple and
straightforward. It says this is the greatest challenge we face. It
says because of that, we need to face it. We need to debate and talk
about it and act. We need to start doing that now, well before any
significant deadline like when the debt limit may have to be increased.
The letter says: Mr. Leader, we are going to oppose moving to any
other bill that doesn't directly address this crisis when we need to
act on this grave threat.
Let me read relevant portions that go right to the point:
Dear Leader Reid:
Yesterday, the Senate voted on two proposals to fund the
government for the rest of the fiscal year. This debate gave
only a limited (three hours) opportunity to debate what many
Americans believe is the issue of our time--cutting
government spending and dramatically reducing our national
debt. Additionally, no member of the Senate was permitted to
offer amendments under the structured process, which in our
opinion prevents a full, open, and robust debate.
With our national debt poised to reach its $14.3 trillion
limit in the very near future, taxpayers expect Congress to
work together to reduce wasteful and unnecessary spending and
be more vigilant about how we spend public funds. The
American people want Congress to deal with the tough issues
of cutting spending, and almost every member of the Senate
has agreed that we must address our fiscal situation
immediately.
While there are certainly many issues that warrant the
Senate's consideration, we feel that the Senate must not
debate and consider bills at this time that do not
affirmatively cut spending, directly address structural
budget reforms, reduce government's role in the economy so
businesses can create jobs, or directly address this current
financial crisis.
The American people resoundingly rejected the way the
Senate waited until Christmas Eve as a mechanism to force
hurried debate on President Obama's massive health care
legislation. Voting to proceed to another legislative measure
effectively runs away from the central issues of spending and
debt and repeats that flawed process.
We, therefore, are notifying you of our intention to object
to the consideration of any legislation that fails to
directly address this crisis in a meaningful way. Our
objections would be withheld if the Senate agrees to dedicate
significant floor time to debate this issue well in advance
of the federal government reaching our statutorily mandated
debt limit.
It is signed ``Sincerely'' from both myself and Senators Sessions,
Rubio, DeMint, Paul, Lee, Toomey, and Ensign, to the majority leader.
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The statement is clear. This is a crisis. We need to act before we
reach the statutory debt limit. So what are we waiting for? Let's act
now. Let's not move to other cats and dogs bills that may be positive
legislation but can certainly wait. Let's move to the people's
business. Let's move to the absolute top challenge we face
domestically. Let's come together and debate, vote on, and hopefully
begin to solve this problem of unsustainable spending and debt.
To do that we also need leadership, ideas, suggestions. I believe we
have provided that on this side of the aisle, and we would welcome
ideas, suggestions, and concrete proposals from all Members.
Let me list the more than two dozen pieces of legislation that go
directly to this issue:
S. 14, by Senator Ensign, establishes a commission on congressional
budgetary accountability and review of Federal agencies.
S. 81 is an Isakson bill to direct unused appropriations for Senate
official personnel and office expenses to be deposited in the Treasury
and actually used to reduce the Federal debt.
S. 102 is a McCain bill which requires OMB to transmit to Congress a
message with specified information requesting any recession the
President proposes under the procedures instituted under that act.
S. 162 is a Paul bill to cut $500 billion in Federal spending from
fiscal year 2011.
S. 163, by Senator Toomey, is the Full Faith and Credit Act to
prioritize principle and interest payments when and if the debt limit
is reached.
S. 178, by Senator DeMint, reduces Federal spending by $2.5 trillion
through fiscal year 2021.
S. 245 is a Corker bill, the CAP Act, to create a discretionary
spending cap for Congress.
S. 259 is my bill to prioritize Social Security payments if and when
the debt limit is reached.
S. 360, by Senator Inhofe, creates a point of order to exceed
nonsecurity discretionary limits and to create spending limits for
fiscal years 2017 to 2021.
S. 389, by Senator Kirk--and Senator Hatch has a similar bill--
establishes a commission to review cost control.
S. 391, by Senator Moran, rescinds all unobligated balances of
President Obama's stimulus bill.
S.J. Res. 3, by Senator Hatch, is a balanced budget amendment.
S.J. Res. 4, by Senator Shelby, is on the same topic.
And S.J. Res. 5, by Senator Lee, is on the same topic.
This is a long list, but it is certainly not exhaustive. I have read
a partial list to make the point. We are coming up with ideas,
proposals, and solutions. We encourage every Senator of both parties to
come up with ideas, proposals, and solutions. Let's actually talk about
the greatest threat we face. Let's talk about it now. Let's debate it
now. Let's exchange ideas in a positive atmosphere now, well before we
reach any crisis atmosphere over the debt limit.
I respectfully urge the distinguished majority leader, Senator Reid,
to heed our call to arms, to read our letter and react by creating an
identified time on the Senate floor, well before we reach the statutory
debt limit, to debate and pass solutions on this crucial topic.
I don't believe there is debate that this isn't the greatest
challenge we face, that this isn't the greatest economic threat we
face. Quite simply, what are we waiting for? We need time to bring
forth these ideas and exchange them and debate them and act. We need
time to do this well before the statutory debt limit is reached. We
need to do the people's business in a reasonable way, in a sober
atmosphere, not in an atmosphere of hysteria or threats when the debt
limit would be reached in a matter of days.
I urge all colleagues to join us in this effort, to come to the floor
with their ideas, their proposals. Let's do the people's business.
I ask unanimous consent that a partial list of Republican solutions
and proposals be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 14--an Ensign bill to establish the Commission on
Congressional Budgetary Accountability and Review of Federal
Agencies. Directs the President to designate two Commission
co-chairpersons.
S. 81--an Isakson bill to direct unused appropriations for
Senate Official Personnel and Office Expense Accounts to be
deposited in the Treasury and used for deficit reduction or
to reduce the Federal debt.
S. 102--a McCain bill which requires OMB to transmit to
Congress a message with specified information requesting any
recission the President proposes under the procedures
established in this Act.
S. 162--a Paul bill to cut $500 billion in federal spending
from FY 2011.
S. 163--Toomey's Full Faith and Credit Act to prioritize
principle and interest payments when the debt limit is
reached.
S. 178--DeMint bill to reduce federal spending by $2.5
trillion through 2021.
S. 245--Corker's CAP act to create a discretionary spending
cap on Congress.
S. 259--Vitter bill to prioritize Social Security payments
when the debt limit is reached.
S. 360--Inhofe bill to create a point of order to exceed
non-security discretionary limits; also creates spending
limits for FY 2017-2021.
S. 389--Kirk and Hatch bill to establish a commission which
will conduct a review of cost control in the federal
government every two years with respect to improving
management and reducing costs. Directs the Commission to
conduct in-depth studies to evaluate potential improvements
in the operations of executive agencies and to develop
recommendations regarding: (1) opportunities for increased
efficiency and reduced costs that can be realized by
executive action or legislation, (2) areas where managerial
accountability can be enhanced and administrative control can
be improved, (3) opportunities for managerial improvements
over the short and long terms, (4) specific areas where
further study can be justified by potential savings, and (5)
ways to reduce governmental expenditures and indebtedness and
improve personnel management.
S. 391--Moran bill which rescinds all unobligated balances
of the Obama stimulus bill.
S.J. Res. 3--Hatch's balanced budget amendment.
S.J. Res. 4--Shelby balanced budget amendment.
S.J. Res. 5--Lee balanced budget amendment.
Mr. VITTER. I yield the floor.
The PRESIDING OFFICER. The Senator from Texas.
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