[Congressional Record Volume 157, Number 108 (Tuesday, July 19, 2011)]
[House]
[Page H5169]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    ECONOMIC CONSEQUENCES OF DEFAULT

  (Ms. MOORE asked and was given permission to address the House for 1 
minute and to revise and extend her remarks.)
  Ms. MOORE. Mr. Speaker, you've heard the so-called ``experts'' 
predict the economic consequences of default on the debt, but your 
question is, what does this have to do with me? And Gwen, can you 
please tell me what this means in plain English? For example, the 
Federal Reserve analysis that default would cause point increases in 
Treasury yields. Translation: Every point increase means the loss of 
hundreds of thousands of jobs--your job.
  The economist William Seyfried said a 1 percent change in GDP growth 
correlates with .4 percent total employment change. Translation: Every 
percentage loss of GDP means 640,000 lost jobs--your jobs.
  Default permanently raises the interest rates, says J.P. Morgan, and 
they estimate that interest rates could rise 75 to 100 basis points. 
Translation: Mortgages rise $1,000; credit card interest rises by $250. 
And the decline of the value of the dollar. Translation: $182 extra on 
your utilities, $318 a year on food, $100 a year more on gas. Do you 
get it?

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