[Congressional Record Volume 160, Number 29 (Friday, February 21, 2014)]
[Extensions of Remarks]
[Pages E222-E223]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         PATRICIA CLARK BOSTON AIR ROUTE TRAFFIC CONTROL CENTER

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON LEE

                                of texas

                    in the house of representatives

                       Tuesday, February 11, 2014

  Ms. JACKSON LEE. Mr. Speaker, I rise to speak on the rule for the 
debt ceiling increase.
  You may recall that two years ago the Nation's credit rating was 
downgraded for the first time ever because of politicized negotiations 
and the initial failure to reach an agreement--and now we risk that and 
more because an odd lot of members in this body and one, perhaps two in 
our bicameral twin, wish on the American people out of some misguided 
principle.
  Refusing to raise the debt ceiling poses a cataclysmic danger to the 
stability of our markets and the economic security of our middle class 
and complete devastation for the poor.
  I agree with President Obama that the full faith and credit of the 
United States is non-negotiable. The United States has been the 
worldwide standard bearer for many years and many other nations have 
been comfortable holding our paper but now our preeminent financial 
status is in jeopardy.
  As former Federal Reserve Chairman Ben Bernanke stated last year: ``A 
government shutdown, and perhaps even more so a failure to raise the 
debt limit, could have very serious consequences for the financial 
markets and for the economy . . .''
  The Federal Government's statutory debt limit currently stands at a 
sum near $16.699 trillion; and it needs to be increased.
  I ask what we tell the people of China and Japan, who each own over 
one trillion in U.S. treasury securities. Or Singapore which owns $80 
billion.
  We have enjoyed the status for many years now of hearing the phrase: 
``the flight to Treasuries,'' from financiers and investment analysts 
from around the world. This is something we should not and cannot take 
for granted.
  And I ask what about the Seniors and Baby Boomers who literally count 
on the Social Security Trust Fund for their retirement--because while 
our international image and reputation are incredibly important, Mr. 
Speaker, the largest single holder of Treasury Securities is the Trust 
Fund.
  The American people are not just owed government bonds--this 
Congress--and you--owe them peace of mind let us vote on the debt 
limit--post haste.
  Here are some of those consequences if we do not raise the debt 
ceiling and pay our nation's bills:
  A debt limit increase simply allows Treasury to pay the bills for 
spending Congress has already approved and does not add one cent to the 
debt.
  House Democrats agree with President Obama that the full faith and 
credit of the United States is non-negotiable.


                         HIGHER MORTGAGE COSTS

  If a default were to increase mortgage interest rate spreads by as 
much as they did when Republicans threatened default in 2011--0.7 
percentage points--the average homebuyer will pay an extra $100 a 
month. [Treasury Department]
  This would cost 582,829 Texas residents took out a home mortgage or 
refinanced their existing mortgage last year $36,000 over the life of a 
typical 30 year home loan.


                        LOST RETIREMENT SAVINGS

  American workers retirement accounts--pension funds, 401(k) plans, 
and Individual Retirement Accounts (IRAs)--are at risk with a 
government default as much of them are invested in the stock market.
  Private pension balances were 26 percent lower than they would have 
been if House Republicans had not threatened to default in July 2011. 
[The American Society of Pension Professionals and Actuaries]
  If a default caused retirement assets to shrink that much again, it 
will drop the average American's 401(k) by $15,000 and the average IRA 
by almost $23,000.
  And the cost would be worse for workers' nearing retirement--dropping 
an average

[[Page E223]]

near-retirement worker's 401(k) more than $37,000.
  A Republican debt default would put at risk the retirement plans of 
4,473,000 Texans.


        SENIORS MAY NOT GET THEIR MONTHLY SOCIAL SECURITY CHECKS

  Fifty-eight million Americans, including seniors, widows, disabled 
workers and children, rely on Social Security to make ends meet every 
month.
  If Republicans force default, more than 10 million Americans will not 
get their Social Security on October 23. On November 1, Social Security 
is scheduled to pay another 26 million Americans.
  A Republican debt default would hurt 3,657,907 residents in Texas who 
rely on their earned Social Security benefits.


            DISABLED VETERANS MAY NOT RECEIVE THEIR PENSIONS

  Nearly 4 million disabled veterans receive monthly payments in 
recognition of their service and their sacrifice.
  If Republicans force default, they will not receive their benefits on 
November 1:
  299,877 Texas veterans receive disability compensation.
  24,984 very poor and disabled veterans in Texas receive a pension to 
live on.


               STUDENT LOANS WILL COST SIGNIFICANTLY MORE

  Even a brief default might increase the cost of college.
  For a freshman who starts school in 2014 and takes out the maximum 
annual student loan, their student loan costs are estimated to jump by 
about $1,000, increasing loan payments by m percent. [The Institute for 
College Advancement and Success (TICAS)]
  A longer default could increase payments by $2,000 for the 531,327 
Texas students who rely on loans to go to college.


  DOCTORS AND HOSPITALS MAY NOT GET PAID FOR TAKING CARE OF AMERICANS 
                             WITH MEDICARE

  More than a million doctors and hospitals that take care of Medicare 
beneficiaries have submitted bills for services they already provided. 
If Republicans force a default and Treasury is unable to pay them, they 
may not be able to continue caring for the 3,187,332 disabled workers 
and seniors in Texas.
  Higher interest rates for mortgages, auto loans, student loans, and 
credit cards. Higher interest rates and less access to business loans 
needed to finance payrolls, build inventories, or invest in equipment & 
construction.
  Families' retirement savings in 401(k)s dropping as the stock market 
plummets.
  3.4 million veterans not receiving disability benefits.
  10 million Americans not receiving their Social Security check on 
time in just the first week.
  Drug reimbursements under Medicare stopping, and doctors and 
hospitals not getting paid.
  Mr. Speaker, let's get to work together on behalf of the American 
people and pass a clean CR an raise the debt limit--now! The people 
expect nothing less, and time is of-the-essence.

                          ____________________