[Congressional Record (Bound Edition), Volume 157 (2011), Part 8]
[House]
[Pages 11385-11386]
[From the U.S. 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

[[Page 11386]]

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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