[Congressional Record Volume 157, Number 67 (Monday, May 16, 2011)]
[Senate]
[Pages S2978-S2980]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DEBT LIMIT
Mr. COATS. Mr. President, I appreciate the remarks of my colleague,
Senator Levin. I just caught the tail end, but it is a good segue into
what I wish to speak about today.
Today is May 16, an important day for me, because it happens to be my
birthday, although I am not anxious to have any more birthdays and it
is no big deal. This day is more important because this is the day that
Treasury Secretary Geithner said we have reached the debt limit
ceiling.
I read from this missive that came out a little bit ago:
Treasury Secretary Timothy Geithner announced on Monday
morning that the Federal Government had met its statutory
borrowing limit of $14.294 trillion cap.
This is the day we have been talking about for a long time. In fact,
this day had been advertised as the likely date on which the United
States would hit the debt limit.
Here we are with an empty floor on a Monday and people are saying,
Whoa, shouldn't you guys have been in every night last week and all
weekend to avert hitting this limit, because doesn't this mean we have
to default on our debt? Well, as the article goes on to report:
Treasury will now begin a series of ``extraordinary''
measures designed to stave off a potential government
default.
Treasury has been able to move some money around so that now we won't
reach that magic date until August 2.
Is this good news or bad news? Well, it is maybe good from the
standpoint that we may have avoided a catastrophic situation today, but
it simply postpones the date of the inevitable. What I fear is that it
simply gives us more time to avoid getting engaged in dealing with what
is arguably one of the largest crises in American history, particularly
in American financial history. So when we look at what has been
transpiring over the last several years, as all of us have watched with
alarm, our debt limit continues to climb at an unprecedented rate and
there has been not nearly enough debate and engagement on how we should
address this. I know the last several months have been filled with
proposals and plans and dire predictions. The last year--2010, an
election year--certainly aroused the interests of the American people,
when I think for the first time the reality became clear on what the
increase in the debt and the deficits is doing to our country's
financial health.
I have this chart here on the left which shows total U.S. debt and
statutory debt limit from the years 1941 to 2011. In December 1941, we
were engaged in World War II. We see a small little spike here in terms
of the debt limit. That is understandable, because we were in a crisis
situation and we had to put all of our efforts and expenditures into
production to address the war needs. But as we can see, from 1941 all
the way through to 1981, we moved along at a fairly low level of
increase in debt and finally hit the $1 trillion mark in 1981. So for
more than 200 years in the history of this country, we ran this country
without going more than $1 trillion in debt. That is enough as it is.
But I remember at the time, in 1981, people were saying, How could this
be possible? How could we possibly reach this limit, $1 trillion? We
can hardly comprehend it.
The sad news is that since 1981 we have been on a steady incline of
debt, which has accelerated dramatically in the last few years. Today--
May 16, 2011--we have hit a total of nearly $14.3 trillion in debt.
This line continues off this chart and goes much higher as we project
forward the spending, much of which is occurring because of mandatory
spending put in place for programs that were locked in and it is
obligatory spending on the part of the Federal Government. Of course,
as we go forward, the interest rate on our debt increases and the
amount we pay each year increases. So we find ourselves in a spiral, a
downward spiral of debt that seems to have no end.
This is no surprise to most people because there has been focus on
this all across America over the last couple years. Throughout this
period of time, people have had to stretch their own dollars at home in
order to make ends meet. Businesses have had to make significant
changes in the way they do business in order to make ends meet. State
governments have found they are deeply in debt and have had to take
some dramatic measures. But it is only now that the Federal Government
is starting to look seriously at what we need to do.
All throughout the year 2010, with no budget in place, Congress
continued to spend. But I am not here to place blame on any one
individual or any one group. I am simply here to point out the fact
that we have a serious crisis at hand and it deserves serious debate
and a serious solution or we are going to find our country in very
difficult straits.
From this point forward, as shown on the chart, Congress has been run
by Democrats and Republicans. The Presidency has been held by Democrats
and Republicans. So we can go back and say: Well, who is responsible
for this and who is responsible for that and what about here and what
about there? That is a wasted effort at this particular point in time.
This is the situation we face, and this is the situation with which we
must address.
I regret that the Senate, to date--other than activities such as
Senator Levin was engaged in, I am engaged in; that is, coming to the
floor at a time when the issue is not before us in terms of seeking a
resolution but simply stating the facts and urging us to move forward--
I regret that this year we have spent a total of only 4 hours and 20
minutes of actual debate on the spending. Instead, we have been tied up
for weeks on not trivial but far less serious measures: confirming some
judges to district and appellate court positions, dealing with the
Federal Aviation Administration reauthorization bill, which took
several weeks. Now we have been stuck on the small business
authorization bill for several weeks, injecting here and there in some
debate and some talk and discussion about the deficit but no real focus
on that.
If we do not set aside the less important and begin to focus on what
we need to do, we are going to quickly find ourselves into the month of
July careening toward an August 2 deadline, during which time the
uncertainty that exists in the investment community and in the business
community and in households, in terms of spending and what the future
might bring--all that continues.
What the world is waiting for, and what the world is watching and
hoping and praying for, is that the Congress and the executive branch
will work together to seek a solution to this problem that will bring
reassurance to the investment world and bring confidence to our
population that we have gotten serious and we are going to do something
about this.
None of us believe this is going to be easy. None of us believe this
is going to be painless. But we simply cannot postpone the debate that
needs to take place, not only in this Chamber and in the House of
Representatives but between the House and the Senate and the White
House.
Some conversations have already started in that regard but also
across the Nation. This is a debate that has to come before the
American people because they are going to be the ones who are going to
bear the brunt of whatever cuts and whatever solutions need to take
place in order to put us on the right fiscal track.
If I have learned anything in discussions outside this Chamber with
people who have studied and analyzed and looked at this issue, it is
that several things must take place, and they must take place
immediately. A host of people who have spent their lives understanding
the dynamics of the financial system--understanding the consequences of
debt as a percentage of gross national product, understanding the
consequences of how a nation rises
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to this level of debt, the consequences of that to its people and to
its financial future and its stature in the world and its ability to do
the many wonderful things the United States has been able to do, to
lead the world in so many different areas--all this is in jeopardy if
we do not address this issue.
What they are saying, if I could bring that into just some basic
conclusions, is, No. 1, this crisis is real. All you have to do is look
at this chart I have in the Chamber to understand this crisis is real.
Here is where we were in World War II when we were having to go into
debt, which we thought was serious at the time. But look at what has
happened in just the last 30 years.
So the crisis is real. As measured by historical analysis of nations
that have faced these kinds of situations before, the consequences are
always dire. Therefore, No. 1--and I was glad to hear my Democratic
colleague acknowledge this is the case because this is something both
sides of the aisle are going to have to deal with--both sides have to
recognize that, No. 1, the crisis is real and it is now.
The second conclusion, based on what the experts are saying, is that
we have to act now, not later. This is not something we can postpone.
For years and years and years, as this line has gone forward, as shown
on this chart, Congress has said: We'll get to that. Presidents have
also said: We need to address our debt, but only after the next
election.
Well, there is always a next election. Now the latest thing we hear
is: Well, we need to take care of that after the 2012 election. We will
put it before the American people in terms of which way they want to
go.
The American people spoke very loudly and clearly in 2010. If that
was not a wake-up call politically, I do not know what will be. But,
nevertheless, falling into the trap of simply saying that waiting until
after the next election we might be in a better position to deal with
it then simply postpones the inevitable and potentially brings about a
crisis which will occur before the election in 2012.
It is shameless to put before the American people that the political
situation is such that we are not willing to address this now and,
therefore, we are putting their lives, their futures, their children's
futures, and their children's children's futures in jeopardy, while we
place a higher priority on the political outcome of 2012 rather than on
what we were elected to do in 2010 and years before.
No. 1, the crisis is real. No. 2, we have to act now without delay.
No. 3, many experts have advised that, if we do something, it needs to
be a comprehensive plan that includes all aspects of Federal spending.
We need to talk about the discretionary part of our budget, which we
vote on every year, although in the last couple of years we have not
even passed a budget. Last year, we failed to pass a single
appropriations bill. Instead, we have had continuing resolutions and
supplemental spending bills, which is not what we were elected to do
and not a good way to govern. But we have to address that portion of
the budget.
When addressing a long-term economic plan, we cannot exempt major
sectors of our budget such as interest and defense and mandatory
spending and we must include entitlements. That is No. 4, many experts
say. If you do not have a comprehensive plan that includes everything,
then the burden falls on a disproportionate share of discretionary
spending that undermines essential programs the government ought to be
engaged in.
We cannot get from here to there without including all aspects of the
budget, including comprehensive tax reform. That is another thing these
experts have said. Many say the comprehensive plan must include some
basis on which we move forward with tax reform.
Senator Wyden and I have cosponsored a bipartisan bill for that very
effort. We are not saying it is the perfect bill. We are saying it is
something in place with which we could start on and address
comprehensive tax reform, to broaden the base and generate more revenue
from the economic growth that comes with lowering taxes and reforming
the tax code.
Entitlements are a must. That is what these people have said. You
cannot get from where we are now to where we need to be unless we
include Medicare, Medicaid, and Social Security reforms. We all know
there are structural problems, given the massive move into retirement
age of the baby boom population of this country. We all know these
programs are teetering on the edge. There was a report from the
trustees of Medicare last week saying they are moving up 5 years when
Medicare runs out of money in order to pay for benefits that are
promised under that program.
We all know there are some relatively painless solutions the earlier
we start, in terms of adjusting the retirement age, in terms of
adjusting some formulas, and making some of the changes that have been
proposed that we are talking about. But if we do not include that
entitlement spending in our discussions, we are not going to be able to
reach a successful conclusion.
Another principle they have listed is that we have to make this for
the long term and we have to lock it in. We have to guarantee the
promises we make and the commitments we make, as we address this
problem of how much to cut and how to change the Tax Code and how to
work through the revenue side of this effort. They have to be locked in
place and guaranteed, hopefully, with the passage of a constitutional
amendment to balance the budget.
We failed twice in the 1990s in this Senate to pass a constitutional
amendment to send to the States for ratification. It failed by one vote
on two occasions. I wonder what would have happened had we passed that.
No, I do not wonder. I know what would have happened. We would have
been forced to make the decision at this point, as shown on the chart,
which would have brought us back to here instead of now having to go
from this point on the chart all the way down--a much more painful
process than had we passed that amendment then.
So what we want to avoid, when we are forced to do this--and it is
going to happen; we have to do it--we need to lock that in on a path
that will bring us back to fiscal parity and balanced budgets and then
lock it in with a constitutional amendment. It cannot be done in 1
year. That is why the other principle is that this has to be a long-
term process in getting us from where we are to where we need to go,
and then we need to stay with it. We cannot just pass it for 2 years,
elect a new Congress and come in and make these changes.
If we move forward, and if we can come together to find a rational
solution to this, it will send--this is the last point the experts have
said--it will send a tremendous signal around the world to all those
investors who have always looked to the United States as the safe-
haven, last-resort place to put their money. The dollar will be rescued
from falling against other currencies. It will continue to be seen as
the world's currency. Confidence in the United States as a safe place
to put your money will be restored in nations around the world. The
American people will have a tremendous psychological sense of relief
and assurance that we are finally getting serious about doing something
about this crisis that faces us.
Lastly, what I would like to do is send a message to President Obama,
the majority leader, my Republican and Democratic colleagues, the
minority leader, and others: The time is now. I believe we should
suspend, as soon as we can, everything but the absolute essential and
spend the next amount of time, starting now, debating and working
through--whether it takes day and night and weekends--rolling up our
sleeves and sitting down, holding this debate across the country, to
get input from the public, but also meeting together, working to find a
solution to this, which we all recognize has to be done, without
letting this thing trail all the way to late July and then do something
in a panic.
This crisis is going to occur. It is going to occur probably sooner
than we think. The last piece of advice they gave us--I know I said it
just a minute ago--but the other piece of advice they gave us was:
Trust us, you do not want the financial markets to force you into doing
things that will be done in a rush, that will be done in a panic, that
will not be rationally applied; and instead of having a principled,
rational
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way of solving this problem, we will be in crisis mode, and we will be
having to make decisions that will have a significant negative impact
on our public and on the world.
I hope to keep talking about this issue. I hope to keep urging our
leadership to suspend all but the essential of what we are now doing
and that all of us commit whatever time it takes to bring about a
debate and a decision as to how we are going to go forward. Put it in
front of the American people. Let our yea be yea and our nay be nay.
Then at least we will know where we stand and we, hopefully, can come
together to find a reason to forgo letting the markets do this for us,
which everyone concedes is not the way to go.
I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. KYL. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
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