[Congressional Record (Bound Edition), Volume 159 (2013), Part 11]
[House]
[Page 15404]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         DEBT CEILING INCREASE

  The SPEAKER pro tempore. The Chair recognizes the gentlewoman from 
California (Ms. Waters) for 5 minutes.
  Ms. WATERS. Mr. Speaker, I rise today to discuss the irresponsibility 
of the Republican Party in holding hostage the full faith and credit of 
the United States.
  As hundreds of thousands of Federal workers go without pay, as home 
buying slows to an eventual halt, and as Federal agencies remain unable 
to complete the important work of implementing the Wall Street Reform 
Act, Republicans are threatening another crisis that could have 
significant impacts on our financial markets and the economic security 
of all Americans. They do this in pursuit of an ideological agenda. The 
result is continued instability and uncertainty for our economy and 
fragile recovery.
  We should not default on our obligations. The ramifications of doing 
so would be serious. The underpinnings of the entire financial system 
could be affected, with the possibility of triggering a financial 
crisis reminiscent of the days following the failure of Lehman 
Brothers--only this time, it would be far worse.
  If the U.S. defaults on its debt, lending--the lifeblood of our 
economy--would dry up. The dollar's value could drop, and we could see 
dramatic increases in interest rates on everything from mortgages and 
auto loans to credit cards. Not only that, but every U.S. corporation 
and municipality would likely see their borrowing costs climb as well. 
Unemployment rates would rise precipitously just as we're beginning to 
recover.
  If Congress cannot do its job in a timely manner, in the future, the 
government's ability to pay its debts will be looked upon with 
uncertainty by investors and markets, leading to higher borrowing costs 
in the future and, in turn, an increase in our Nation's deficit. Worst 
of all, we could see another dramatic loss of wealth for working 
Americans.
  History tells us that even the threat of default can send shock waves 
through our financial system. In 2011, just the prospect of defaulting 
on our debt caused a drop in consumer and business confidence, a 17 
percent decline in the S&P 500 index of equity prices, and increased 
volatility in the stock market; and, of course, we received a downgrade 
in the U.S. Government debt.
  The drop in equity caused by the 2011 debt ceiling fight had serious 
consequences for American families. The months following saw a $2.4 
trillion decline in household wealth and an $800 billion drop in 
retirement assets. The cost of homeownership also increased, as risk-
averse lenders increased the cost of borrowing to purchase a home. The 
2011 debate showed us the very serious consequences of even debating 
whether we should pay bills already incurred.
  But no one knows with certainty the full extent of the damage to the 
economy should the U.S. actually default on its debts. We have heard 
speculation ranging from bad to the catastrophic. I, for one, do not 
want to find out.
  What I do know is that everyone from Wall Street CEOs, the U.S. 
Chamber of Commerce, to small business owners, and prominent 
conservative economists are concerned with the significant damage that 
could result from a debt ceiling standoff. Warren Buffett, Ben 
Bernanke, Hank Paulson, and the heads of the Nation's largest financial 
institutions have been outspoken about the need to end this hostage 
crisis now.
  Mr. Speaker, the American people have been through enough. We remain 
in the midst of a government shutdown with no end in sight. It is 
hurting real people and damaging our economic recovery. At this tenuous 
time, defaulting on our Nation's debt could create the perfect storm 
that may roil financial markets and undermine the credibility of the 
United States; but, most importantly, it could be devastating for 
American families who are already suffering in the aftermath of a major 
recession, foreclosure crisis, and now a government shutdown.
  So I urge my colleagues to stop using the debt ceiling to push 
extremist ideology and vote now on a clean debt limit increase.
  The gentlewoman from Tennessee said she doesn't know what we mean 
when we talk about a ``clean debt limit increase.'' I think she knows. 
She knows that they should not try to do away with the ACA--that is, 
the Affordable Care Act, known as ObamaCare--and hold us hostage 
because they don't like it.
  The ObamaCare legislation was passed. It is in law. President Obama 
was absolutely supported by the citizens of this country when they 
voted the President to be reelected once again. The Supreme Court 
supported it. If they wish to do away with ObamaCare, they should go 
through the legislative process and repeal it; but no, they are holding 
us hostage on the budget.

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