Providing for Consideration of H.R. 10, Scholarships for Opportunity and Results Reauthorization Act, and Providing For Consideration of H.R. 692, Default Prevention Act

Floor Speech

BREAK IN TRANSCRIPT

Mr. McCLINTOCK. Mr. Speaker, I thank the gentlewoman for yielding. I want to thank the Rules Committee for reporting H.R. 692 to the floor.

This Nation now staggers under more than $18 trillion of debt, nearly a $7.5 trillion run up by this administration alone. The interest on that debt is one of the fastest growing components of the Federal budget. If there is ever any doubt over the security and reliability of the debt owed by this government, the interest rates that lenders charge us would quickly rise and overwhelm us.

Now, the Democrats say, well, just raise the debt limit, and, of course, we realize in this era of chronic deficit spending--establishing new records under this administration--that we have to do so. Congress alone has the power to incur debt, and the debt limit is the method by which we discharge our responsibility; but when we do so, it is also Congress' responsibility to review and revise the policies that are driving that debt.

The fundamental problem under both Democratic and Republican Congresses is that this process is fraught with controversy. The bigger the debt, the bigger the controversy; and the bigger the controversy, the more likely that credit markets are to demand higher interest payments to meet their greater risk. Given the size of our debt, that could produce an interest tidal wave that could sink our budget and our Nation along with it.

The Default Prevention Act simply provides that, if the debt limit is reached, the Treasury Secretary may continue to borrow above that limit for the sole purpose of paying principal and interest that is due. It is an absolute guarantee that the debt of the United States will be honored.

Most States have various laws to guarantee payment of their debts. In fact, a few years ago, Ben Bernanke praised these State provisions for maintaining confidence in their bonds. It amazes me that we can't all agree on this simple principle: that we should guarantee the loans made to the Federal Government. That is all this bill does.

Yet we have heard opposition from the other side, and they basically make two charges. One is that this pays foreign governments first while shorting our troops. We just heard that from the gentleman from Florida. Well, what xenophobic nonsense. The fact is most of our debt is held by Americans--often, in pension funds--so it protects Americans far more than foreign governments.

But they miss the main point. It is the Nation's credit that makes it possible to meet all of our other obligations. When you are living off your credit card, as our Nation is at the moment, you had better make your minimum payment first or you won't be able to pay all of your other bills.

In the veto threat, the President leveled the other charges we heard from the gentleman from Florida, that it is just an excuse for not paying our other bills. Well, do they actually believe that these other States that have guaranteed their sovereign debts for generations have ever used these guarantees as an excuse not to pay their other bills? On the contrary, by providing clear and unambiguous mandates to protect their credit first, they actually support and maintain their ability to pay for all of their other obligations.

So let me be crystal clear: delaying payment on any of our obligations would be unprecedented and dangerous. There is one thing, though, that could do even more damage than delaying payment on our other bills, and that is the mere threat of a default on our sovereign debt. This measure takes that threat off the table, and it ensures credit markets that their investments in the United States are as certain as anything can be in life.

A few years ago, Senator Barack Obama vigorously and forcefully opposed a debt limit sought by the Bush administration. He said it was a failure of leadership. Well, I have never equated Senator Obama's opposition to the debt limit increase as anything other than a principled and well-placed concern over the proper management of our finances. It is sad that he cannot give the opposition the same courtesy.

Mr. Speaker, we may disagree over the appropriate role of Congress in adjusting the debt limit, but at least can't we all agree that during these disputes the sovereign debt of the United States is never in doubt? That is all that this bill says; that is all that this bill does. Mr. Speaker, let's pass this rule and proceed with consideration of the bill.

BREAK IN TRANSCRIPT

Source