[Congressional Record Volume 157, Number 105 (Thursday, July 14, 2011)]
[Senate]
[Page S4568]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          BUDGET NEGOTIATIONS

  Mr. REID. Mr. President, there are some in the Republican Party who 
will not listen to the truth no matter who speaks it.
  This is my opinion: If we allow this Nation for the first time in its 
history to default on our national obligations, it will not only be a 
black mark on our reputation but also a massive financial disaster that 
will sweep the world into global depression.
  But it is not my opinion alone. I have come to that belief by 
listening to the most respected voices in the business community. 
Default, they say, is a ``risk our country must not take.''
  They are not the only ones who believe that is true. The most 
respected bankers have also said it. JPMorgan Chase CEO Jamie Dimon 
said default would be ``catastrophic.''
  Investors have said it. Bill Gross, one of the world's largest mutual 
fund managers, sent us a warning yesterday. He said:

       There should be no question at all. The debt ceiling must 
     be raised and not be held hostage by budget negotiations. 
     Don't mess with the debt ceiling, Washington.

  That is what Bill Gross said.
  Economists have also said it. Ben Bernanke, appointed by President 
Bush as Chairman of the Federal Reserve, has said default would be a 
``major crisis'' that would send ``shock waves'' through the world 
financial markets. Yesterday, he said failure to avert default would 
mean ``huge financial calamity.''
  Even other Republicans have said it. This is what Speaker Boehner 
said in April:

       Not raising the debt limit would have serious--very 
     serious--implications for the worldwide economy and jobs here 
     in America.

  Perhaps most telling of all, all three rating agencies have already 
sent warning shots across our bow. Last night, Moody's cautioned us 
that America's AAA rating was already under review for downgrade. Never 
in the history of the country has that happened, that we are being 
reviewed to downgrade our debt rating. We have 3 weeks left until we 
miss our first payment. They cited the ``rising possibility'' that we 
will default. They said we could lose this crucial rating--which saves 
every American money every day--even before we miss a payment.
  Standard & Poor's has told Congress and business leaders that even if 
the United States keeps paying creditors but delays payments such as 
Social Security or veterans' benefits, it may cut our rating.
  Fitch Ratings has said a default would ``threaten the still fragile 
financial stability of the United States and the world as a whole.''
  So why are some Republicans in Congress still saying that a first 
ever default on our Nation's financial obligations would be no big 
deal?
  When every financial expert, investor, business leader, and banker in 
the country--and even every reasonable member of your own political 
party--is telling you the consequences of default would be 
catastrophic, it is time to start listening. Why? Because default won't 
just roil the financial markets, pushing interest rates higher and tank 
the stock markets. It will affect every American's wallet as well.
  Here are a few of the things that will happen. Social Security checks 
and benefits to our troops would stop. Some of the most vulnerable 
Americans would be placed at risk. Our promise to the men and women who 
protected this Nation so bravely--and those who protect it today--would 
be broken. We would not be able to make payments to our military.
  Payments on our national debt would stop. American investments and 
retirement accounts could be decimated. Millions of Americans could 
lose their jobs.
  Interest rates would rise not only for the government but for 
ordinary Americans as well. Those Americans will pay more for their 
mortgages. They will pay more to use a credit card or buy a car or 
finance a university education. They will even pay more for their 
electric bills, groceries, and gas. The spike in interest rates and 
damage to the U.S. dollar alone would cost the average American family 
more than $1,500 immediately. It would be the most serious financial 
crisis this country has ever faced, and it would come at a time when 
our economy can least afford it. In the long run, it would wind up 
costing the government not millions, not billions, but trillions of 
dollars--a fact Republicans shouting about the debt fail to mention. 
For every 1-percent increase in interest rates, it will cost our Nation 
$1.3 trillion--again, not million, not billion, but trillion. For every 
1-percent increase in interest rates, it will cost this Nation $1.3 
trillion.
  With so much at stake, even Speaker Boehner and Minority Leader 
McConnell seem to understand the seriousness of the situation. They are 
willing to negotiate in good faith, which I appreciate, and the country 
appreciates.
  Meanwhile, House Majority Leader Eric Cantor has shown that he 
shouldn't even be at the table, and Republicans agree he shouldn't be 
at the table.
  One House Republican told Politico, a Hill publication, last night: 
``He lost a lot of credibility when he walked away from the table. . . 
. It was childish.'' What is that all about?
  We had negotiations going on here in Room S. 219, a short jaunt from 
here, and he walked out on the meetings with the Vice President of the 
United States. It was childish.
  Another Republican said Cantor is putting himself first. He said 
this: ``He's all about Eric.''
  The time for personal gain and political posturing is over. It is 
time to put our economy and our country first. The risks we face are 
simply too grave.
  We don't need to take my word for it. More than 300 respected 
business leaders wrote to Congress the night before last to make it 
clear how serious this crisis is.

       A great nation--like a great company--has to be relied upon 
     to pay its debts when they become due. This is a Main Street 
     not Wall Street issue.

  We are listening. It is time for the irresponsible voices in the 
Republican Party who continue to deny the truth of this crisis to start 
listening as well.
  I note the absence of a quorum.
  The PRESIDING OFFICER (Mr. Udall of New Mexico). The clerk will call 
the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. McCONNELL. 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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