[Congressional Record (Bound Edition), Volume 157 (2011), Part 4]
[House]
[Pages 5560-5564]
[From the U.S. Government Publishing Office, www.gpo.gov]




THE U.S. CONSTITUTION AND THE FUNDING OF U.S. ARMED FORCES IN THE FACE 
                        OF A GOVERNMENT SHUTDOWN

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 5, 2011, the gentleman from New Mexico (Mr. Pearce) is 
recognized for 30 minutes.
  Mr. PEARCE. Thank you, Mr. Speaker.
  It is a pleasure to address the House tonight and to talk about the 
issues that are burning across the country. Before I get into the 
economic discussions, my colleagues from across the aisle, my good 
friends, have brought up many things that are worthy of discussion. 
Before I get into that, I'd like to talk a bit about our Constitution.
  I think that, if we as a Republic are not aware of the importance of 
the Constitution, then we tend to diminish it; we tend to walk away 
from it; we tend to not give it the credibility that it deserves, and 
that is highly risky for every one of us but especially for those 
people with very little or no status. The Constitution is basically the 
agreement, the contract, between our government and the people. The 
Constitution is the only thing that limits the power of government. It 
is the instrument by which we, the people, have our rights guaranteed 
to us, and any time we begin to diminish or to say that the 
Constitution is not valid, then we put at risk our own freedoms.

[[Page 5561]]

  One of the ideas of the Constitution is that it was replacing 
something previous to it. The Articles of Confederation were what our 
Founding Fathers originally came up with. Very soon, they realized it 
had great, deep flaws. One of the flaws that they found is that 
interstate commerce, going from one State to the next, did not act like 
it was inside the same country at all. Instead, the commerce was 
stopped at one State line, taxed as it went through that State, stopped 
at the next State line, and products became so expensive that they 
could not move to market because of the taxation, because of the 
accumulated taxation from one State to the next.
  The Founding Fathers recognized that to be a problem. Almost 
immediately, they convened the Constitutional Convention, and one of 
the prime articles that they were talking about in that Constitution 
was the Commerce Clause. They felt it was necessary to address that in 
order for the country to be prosperous, for it to move forward.
  James Madison later wrote in his Federalist Paper No. 56 what were to 
be the objects of Federal legislation. He was addressing that question 
of ``where are we to go with legislation?'' He said that those which 
are of most importance and which seem to require local knowledge are 
commerce, taxation and the militia. So he was visualizing a very 
limited role for government, a very strict role for the Constitution. 
One of the elements of that Constitution was to be the commerce between 
States. In article I, section 8, clause 3 of the Constitution, it is 
delineating the powers of the government, and one of those was to 
regulate. Clause 3 states that the Congress shall have the power ``to 
regulate commerce with foreign nations, and among the several States, 
and with the Indian tribes.''
  So that's the limit of the Commerce Clause. Early on, our Founding 
Fathers had actually had a very limited definition of that, but that 
Commerce Clause definition has been expanded over time so that, if you 
will Google ``commerce/U.S. law abuse,'' you will begin to see the ways 
that our government has begun to extend its reach over our lives by 
redefining what the Commerce Clause was actually about.
  Now, one of the cases that has been mentioned is that some criminal 
with a gun somewhere was within a couple hundred feet of a school, and 
that's something that should not be tolerated and shouldn't be allowed; 
but the government's attacking of that used the Commerce Clause to go 
through a circuitous route to say that the presence of that guy with a 
gun in his pocket, while at or near a school, affected the education of 
the young people and that ending the lives of the young students would 
affect the commerce of the United States.
  So we're trying to get a guy who can't carry a gun on school 
property, and we're going through this tortuous explanation that 
somewhere down the line it's going to affect commerce. Now, there are 
many reasons for not allowing someone to have a gun on school grounds, 
but to use that sort of convoluted reasoning is one of the threats that 
we all face, because if the government can go through convoluted 
reasoning on one thing, it can go through convoluted reasoning on 
anything.
  As we research the Constitution and as we talk to people back in our 
States, we begin to realize that we in Congress have been extending the 
powers of the different clauses. We're using them in ways that were not 
designated initially. We're basically doing a rewrite of the 
Constitution.
  I submitted from my office a bill, H.R. 346, the Health Care Choice 
Act of 2011. In that, we visualized that it would be good for people to 
be able to shop for insurance across State lines. New Mexico has 
significantly higher-priced insurance than does Texas. I live in Hobbs, 
New Mexico. That's 3 miles from the Texas border. It seemed practical 
that we would allow people to drive to the State line and buy insurance 
across that State line, but it is currently prohibited, so I put a bill 
in that said, simply, we can go across State lines. On the surface, 
that seems to be good and noble. It seems to fit the parameters of 
competition--and competition is always good for consumers--but in 
closer looking, we realized that what we are doing is the same 
extension with our bill that we are complaining about in others, saying 
that the Federal Government can declare that a State's right to 
regulate its own insurance is improper. So it is my full intent not to 
pursue our bill because, after looking, I, myself, believe that it does 
not fit the constitutional requirement that we have.
  So that is one issue that I wanted to speak about today. Next, I'd 
like to talk about the bill that we just passed off the floor today, 
which funds our troops in the face of a government shutdown.
  I served in Vietnam in 1971, -2 and -3. I was there at the choice of 
my government. I was not a volunteer. I drew a very low draft number; 
ended up going through flight training, and was flying combat missions 
in Vietnam at a time when our Nation began to choke off the funds to 
the troops in combat. I can remember that the missions here in the U.S. 
were being choked and starved for fuel so that training could not be 
accomplished in the full curriculum that was established before us. 
Instead, we were having to divert money to fund the troops overseas 
because there wasn't enough money going there.
  I have a real problem with our using our soldiers as pawns in this 
particular case, so I voted against the last continuing resolution. I 
was one of 54 Republicans who voted ``no.'' Yet, in this case, this 
continuing resolution said: Let's take the troops off the table. Let's 
have this discussion about where we're going to fund and what we're 
going to fund, but let's not leave soldiers in combat while we're 
discussing how much we're going to fund or not fund the government. 
That, to me, is the only thing that we should be doing.

                              {time}  1800

  Of all the people we should not hold as political pawns, the troops 
who are facing very difficult circumstances in Afghanistan, Iraq, and 
now Libya should not be asked to put their lives at risk and face 
declining amounts of fuel, declining amounts of ammunition, body armor 
or whatever.
  And so the suggestion today, even though I voted against the last 
continuing resolution, I gladly voted for this one because I do think 
our negotiations here should not include them, our troops, our soldiers 
in combat, young men and women who are there doing the same thing that 
I did in 1971, 1972 and 1973.
  It's my belief that the comments from the other side from the Senate, 
from Senator Reid, who's the leader of the Senate, that they're going 
to summarily dismiss this bill, that they're not going to consider it, 
and from the White House that he wouldn't sign it if it got to his 
desk, is in my mind reflective of people who have not been in harm's 
way themselves facing declining funding. If we don't want the troops 
there, then get them out. But don't hold them hostage to this funding 
battle that we're having here on Capitol Hill.
  So I voted for the continuing resolution today that would remove the 
troops, remove our soldiers from this discussion. I'm saddened to hear 
that the White House says they're not going to sign it, that they don't 
care. I'm sad to hear that our Senate says it does not care. If the 
government shuts down, then those young men and women--they're not 
going to be able to get out of the combat zone. It's not like we're 
going to withdraw them. But we're going to leave them there without 
being able to even pay their paycheck. And I think that's the wrong 
thing for us to do.
  One of the things that I heard from our friends across the aisle just 
now was that there are many corrections for the problems that face us. 
And I keep this chart handy and I use it frequently to show the depth 
of the problems that we face.
  This is basically the economic situation facing our country. We spend 
$3.5 trillion in the revenues to the government, that is, the 
accumulated taxes that each one of us pays, or $2.2 trillion. Now, your 
household could not

[[Page 5562]]

 function like that. But there are greater and worse stories.
  We're spending in excess of $1.3 trillion this year, $1.3 trillion 
more than we bring in, each year that we do that--I just draw this as a 
schematic where you show the deficit running over and it runs into the 
debt barrel. The accumulated debt of the Nation is $15 trillion, and if 
you think about if we could devote all of our revenues to paying off 
the debt in the debt barrel, it would take 7 years to do that.
  But beyond the debt barrel, we now have debt that is running over. 
And you see that green sludge that we've depicted on our chart, running 
over the edge. It's reached the top of it. And that's debt that we 
really owe, but we are afraid to admit to the American people. That's 
Social Security, Medicare and Medicaid. Those three programs have an 
accumulated cost facing us of $202 trillion, but we don't include that 
in our debt calculations. If you look on any government Web site and 
ask about the debt, it will acknowledge the $15 trillion, but will not 
acknowledge the $202 trillion.
  Now, if this were your family, and let's say that you made $50,000 a 
year, and you were believing that if I could devote the full $50,000 a 
year for a hundred years and not pay off my debt, you would think that 
it's time to reorganize what you're doing. That's the discussion that's 
going on in the country: should we or should we not take on significant 
reform of the government? Should we look and have a forensic audit of 
our government to consider what things we should do and what things we 
should not do?
  Just the idea that we owe a hundred years' worth of total tax 
revenues to pay off one piece of what we had promised tells us that 
we're in a nonsustainable capacity.
  Now, the chart in the upper right hand of the poster here is the 
alarming piece. We all remember when Ronald Reagan was President, he 
came up with an idea and he was the only one worldwide who described 
it. I remember at his funeral in the taped presentation by Margaret 
Thatcher, she said, Ronnie said he could collapse the Soviet Union's 
economy by escalating their expenditures for defense weapons. And he 
could get their cost of government so high that they could never pay 
it, and they would collapse.
  So they began to spend more than they brought in, the accumulated 
debt began to weigh down on their economy, and they actually collapsed.
  Now, the opponents of what we're doing, the opponents of reform, say 
that it's us, as Republicans, making up the charges. This chart says 
our economy is simply going to quit in 2038--exactly like the Soviet 
Union did. It's going to collapse for the same purpose, that we're 
spending far more than we're bringing in. We have an accumulated debt. 
We have an accumulated unrecognized or undiscussed debt that is $202 
trillion, and our economy will cease to function. This is coming from 
the Office of Management and Budget Web site.
  This is the White House. They're the ones saying that what we're 
doing is not sustainable.
  Now, our friends on the other side of the aisle said that we could do 
something to cure Social Security, that is, we should pass along a tax 
increase to those people making above $106,000. It's interesting to 
hear that when our friends on the other side of the aisle had the House 
in their control, they had the Senate in their control with a majority 
that would not allow filibuster, and they had the White House, and they 
did not once bring up or pass a tax increase for Social Security.
  I find it amazing that it's so simple now that they're not in charge 
for them to talk about it; and yet when they were in charge, they 
couldn't talk about it.
  The reason that we're facing the problems that we are today with this 
continuing resolution is that our friends across the aisle did not last 
year pass a budget and did not pass the appropriating bills. And so 
they simply passed a continuing resolution and they could not get that 
passed through the end of this year. It was within their power to not 
have this discussion at all on a continuing resolution. All they had to 
do was fund the government through September 30 and everything would 
have been fine. We would have had no cause to change anything.
  It's because they passed a bill that would only fund the government 
through March, through the early part of March, that we're in this 
situation. So I'm curious while they say that the solutions are so 
easy, that they're so necessary, that they didn't find it necessary 
before December 31.
  And, in fact, as they're talking about the need to increase taxes, 
out the other side of the mouth they actually decreased taxes. They 
stopped the tax increase that was going to be automatic for American 
citizens.
  So my feeling is that I'm hearing discussions which are not sincere, 
which they had within their ability to change but did not.
  The idea that we are making draconian cuts in our requests, the 
Republican request for this continuing resolution, you hear that word 
often, that they're draconian cuts. I always let people decide for 
themselves. The cuts that we're talking about, we spend $3.5 trillion. 
The Republicans have suggested cuts at a maximum of $61 billion. And so 
what would that decrease $3.5 trillion to? I think it's important to 
assess that in order to decide if the cuts are draconian.
  Our cuts, $61 billion, take $3.5 trillion down to $3.44 trillion, and 
I always ask people is that draconian. And I've never heard one person 
in any town hall say that's draconian. They're in fact alarmed that 
that's all that either party is able or willing to do about the 
accumulated debt, about a deficit that is $1.3 trillion, about the 
inflation that is now rushing our way. And they're saying it is enough, 
stop it, do something about it.
  Do a forensic audit of the entire government and begin to defund 
those things that don't make sense, the things that are no longer 
effective, the things that are duplicative. We've got duplicative 
agencies across the spectrum of government. Sometimes more than 100 
agencies do the same thing. That's a hundred different overheads doing 
the same thing.
  Now, if our government was a business, it would be broke; and the 
truth is that our government is broke and is going to be broke worse. 
And, in fact, we're all seeing the effects on our personal lives.

                              {time}  1810

  You hear many times that those oil companies are driving up the price 
of gasoline to $4 now. It's the evil oil companies. I believe that it's 
exactly opposite.
  In order to fund the $1.3 trillion deficit that we don't have the 
revenues to produce, we find that our Federal Reserve is printing 
money. It is in the printing of money that you devalue the money that 
is in your pockets at the current moment. If we could create Monopoly 
money out of thin air, then it depreciates the value of what you have 
in your pocket.
  If only oil were going up in price, you could maybe make the argument 
that it's the evil oil companies. Maybe you could say it's the 
instability in the Middle East. Maybe you could say whatever. But when 
we see the price of vegetables skyrocketing, when we see the price of 
gold skyrocketing, the price of silver has gone up almost 30 percent in 
the last month, 30 percent, and you would have to say, well, is there a 
greater demand for silver? Is there some new manufacturing program that 
is now using silver that didn't before? That is, did demand drive the 
price up? And you say, no, silver is not used for one thing today that 
it wasn't used for a month ago.
  When you look at all the prices across the spectrum increasing, you 
have to acknowledge that the problem is not that companies are driving 
prices up but, instead, the value of the dollar is decreasing. That's 
because we printed almost $2.6 trillion in money last year. We created 
it out of thin air. That then depreciates the value of the currency 
that you have in your pocket, in your bank account. And it's that 
reason that we're seeing inflation begin to skyrocket. The price of 
gas, food, oil, everything is going up because the

[[Page 5563]]

money in your pocket is worth less. That's going to continue as long as 
we do this.
  Another problem with the country's economy when it spends more than 
it can bring in and when the accumulated debt is so high, our bankers 
begin to worry. The same as your bankers would worry if you were living 
this way personally, they would worry that you could pay your house 
off. They would begin to call you in and speak with you. Our bankers 
for the United States Government have been primarily China, Japan, and 
U.S. companies buying our Treasury bills. That's the process by which 
we loan money to the U.S. Government.
  But because of this accumulated position, the Chinese have begun to 
say, Wait, we're not going to buy so much of your Treasuries any more. 
We're going to decrease our holdings. So they have begun to sell 
Treasury bills rather than buy them. The Japanese have got their own 
problems, and so now they're not willing to buy much debt from us. This 
year, the largest single private buyer of U.S. Treasury bills said, No 
more. We think the risk is too great that we'll never get paid back. We 
think the risk is too great that this system is not going to work.
  So this year, right now, our Federal Reserve, which is an arm of the 
government, which receives its money from the government, is, in fact, 
lending money back to the government. So we are giving money to the 
Federal Reserve. They are turning around and loaning it back to us with 
the other hand.
  Now, if you were doing that, your banker would say you are having to 
counterfeit, you are creating value where there is no value, and I 
think I might call your note.
  We are in the process of finding that the note is due. We see that 
the country has a course in front of it that simply discontinues our 
economy, that simply we fail exactly the way that the Soviet Union 
economy failed. And we're having discussions on the floor of the House 
about cutting this from 3.5 to 3.44. This 1.3 would go to 1.24. And we 
are saying that those cuts are draconian. I will tell you that we are 
not even approaching the cuts that need to be made.
  In these programs alone, Medicare and Medicaid, we are told annually 
that the fraud--not the waste, but the fraud--is about 20 percent. Yet 
we can't find it within ourselves here to address that problem. We're 
afraid of what the ads might look like on TV if we actually began to 
take this on.
  I watched ``60 Minutes'' a couple years ago, and the fraud was 
discussed by a guy from Florida. He is from Miami. He had been arrested 
for fraud. He was selling $400,000 worth of medical things to Medicare 
patients every month. He didn't actually have any inventory. He was 
just billing the government, and they were paying him $400,000 a month. 
No inventory. He had a storefront because he said, Oh, yeah, those guys 
from Medicare drive by, they see if you had a store. So I had a store. 
And he said, I put my name on the door. I didn't actually have any 
inventory. I was never open. I never actually did anything.
  He said, I actually made it into a little game. He said, I charged 
the same woman every month for four prosthetics just to see. He said, I 
don't know if she needed any, or one, or none. He said, They never 
caught it. He said, I did it month after month. He said, So, yeah, you 
got me and you are going to put me in jail for 12 years. He said, At 
400,000 a month, I can stay there awhile. He said, The main thing is I 
still have my mailing list, and I am going to rent my list to someone 
else while I am in jail, so I am going to make a lot of money in jail, 
too.
  So even if he is going to jail, the fraud continues. That's 20 
percent. That approaches $90 billion for one program and $60 billion 
for the other. We are talking about cutting a total of 61 up here.
  Americans are fed up. They're afraid of the future. They're afraid of 
what they see being unleashed here. They're frightened that we are 
printing so much money to try to make the scheme work. And they're 
saying enough is enough.
  Now, I believe that we can make cuts without cutting programs that 
are essential to people, and I do not think that we should do things 
which harm those neediest in society. But there are many, many programs 
where we can make the cuts and we should. The outcome if we don't is 
extreme. The outcome if we don't is the loss of the economic status of 
this Nation.
  The Soviet Union broke into small pieces, small countries. You are 
seeing States right now nervous and anxious about the future of the 
Federal Government, so they are beginning to say, We are going to take 
that function on ourself. We are not going to trust that the Federal 
Government can fix this. They, themselves, are in terrible shape.
  The biggest shame of all in this is that, in a time when we're 
struggling to balance our budget to just make ends meet for our Nation, 
the government is conducting the greatest war on our jobs. The 
government is raising taxes high enough to push companies out of this 
country.
  President Obama said in his State of the Union message that we must 
address the fact that we are overtaxing corporations. He said we are 
one of two of the highest in the world. And since then, Japan has 
decreased, so we are left alone in that.
  We are overregulated. We are regulating companies out of existence. 
Every time we kill a job through regulation--I would point to the 
timber industry, which has been killed by regulation. I would point to 
the jobs offshore where that rig had its problems this year off the 
coast of Louisiana. I think that BP should be accountable, and they are 
paying the bill for what happened, but we should not have killed those 
jobs. Because every job that we kill lowers the 2.2 and it puts people 
on welfare and unemployment, and the 3.5 increases.
  We cannot cut enough spending to get 3.5 to 2.2. We, instead, must go 
and re-create the jobs that our government has systematically killed 
and rebuild our economy, rebuild the manufacturing base so that when we 
put people to work they begin to pay taxes and we begin to not have 
their cost in government. In that case, we're growing the economic 
base. We're growing the revenues of the government and, simultaneously, 
we're cutting the cost of the government.
  The only thing that makes sense for us in rescuing our economy is for 
us to grow the job base. And at a time when we are alarmed at what 
we're seeing economically, then we find the government most hostile to 
new jobs.
  Just recently, within the last week, we have been in discussions with 
the Fish and Wildlife Service, who, out of the blue, decided to list a 
lizard as endangered in our State. They cannot declare that it has 
different DNA from the lizards that are not being put on the list. In 
other words, it's just a variety of a lizard, not all lizards. They 
can't show a DNA difference. So over some small minute difference they 
are going to possibly shut down all of the oil and gas wells in 
southern New Mexico. That means more people on welfare, more people on 
unemployment. It means fewer people paying taxes.
  Up in the northwest part of the State, the EPA recently put out a 
ruling that would cause three of the five generators in one generating 
station to shut down.

                              {time}  1820

  So at a time when we are facing rising utility costs, we are facing 
rolling blackouts. We are going to put three generators off-line. Since 
they are doing that they are going to require less coal, and now then 
200 coal miners who live on the Navajo Indian reservation, making 
$60,000 a year, are going to no longer be working and paying taxes. 
They are going to be drawing unemployment and be on Medicaid, be on 
welfare, TANF, and food stamps.
  One would say that our government will not and cannot kill 
industries, and yet they killed the entire timber industry. New Mexico 
used to have 20,000 jobs in timber, and today it has none because of 
the spotted owl, a regulation that could have been done differently but 
instead was used to stop all the logging in every forest in New Mexico.

[[Page 5564]]

  We believe that's wrong. We believe that we can keep the species from 
going extinct and create the logging jobs again. So we have submitted a 
bill that would do that.
  I would draw our attention also to the fact that 27,000 farmers in 
the San Joaquin Valley in California were put out of work because of a 
2-inch minnow that could have been kept alive in holding ponds and put 
over in the river. But an extreme decision said that it's either the 
jobs or the minnow, and they chose the minnow.
  We are putting our economic system at risk by systematically killing 
industries and jobs in this country, and that's the reason you have the 
frustration that is expressing itself in tea parties across the Nation 
taking to the streets and saying our government is too strong, it's too 
powerful, it's time for us to live within the restraints of the 
Constitution.
  So as I wrap up here tonight, we again talk about the need for the 
Constitution to limit the government, to limit the government's ability 
to come in and affect your freedoms and your life.
  This country has been, in the past, the destination for anyone who 
wanted freedom to build their dreams here. They could come and do it. 
We are beginning to choke off the ability for even our own citizens to 
find their dreams and make them come true here. We are doing it one 
business, one industry at a time through taxation, through regulation, 
but more we are doing it through the unstable currency that we are 
creating through the printing of money.
  It is time for us to get our fiscal house in order. It is time to 
recognize that the future is at risk, according to the OMB and the CBO 
both. If we don't act now, then we will not have an economic future any 
stronger than the Soviet Union.
  It's my hope that we will begin to act as Americans today, not as 
Republicans or Democrats, to look at the challenges that we face, to 
take them on and to address them in ways that the American people say 
``yes.'' That is an appropriate action; that is a correct action.
  It's my sincere belief that our best days are ahead of us because I 
believe the American people are going to insist that we take care of 
the economic mess that we, that we in Congress, have created over the 
last 70 and 80 years. We can't make promises that we can't keep with 
money that we don't have. We must correct it.

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