The Financial Crisis

THE FINANCIAL CRISIS -- (House of Representatives - September 22, 2008)

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Ms. FOXX. Well, I thank you, Congressman, my colleague from Ohio (Mr. Latta), for yielding time and for stepping in to lead this hour this evening, because we have many of our colleagues who are tied up in meetings right now dealing with the issues that we have been talking about.

I heard a little bit of the comments that were made by our colleague from New York (Ms. Clarke) in the previous leadership hour. I have great respect and affection for her, but she made a couple of comments that I have a concern about that I thought it might be useful to make a couple of comments about. We will try to tie the issue of energy in with the issue of the financial situation that we are facing here in the same way.

She said a comment that we don't have enough regulations on the banks and that we need more regulations. I think that most Americans now understand that one of the major problems that we have in our country with jobs going overseas is the impact of too many government regulations.

We are, in many ways, regulating ourselves out of business in this country. We may have wrong regulations for banks and investment firms, may not have the right regulations for them, but I don't think it's that we don't have enough regulations for them. Again, in many ways, we have too many regulations.

I was interested in Congressman Latta's comments about the fact that we had, we know, in talking about the energy issues, and our good friend T. Boone Pickens has done a lot to raise the awareness of the American people by talking about the fact that we transfer out of this country every year $700 billion, the largest transfer of wealth ever in the history of any society. It is a bit ironic that the figure that has been shared with us, that is needed for this proposed bailout, various companies on Wall Street, is $700 billion.

You know, it would be really simple if this Democratic Congress had paid attention to what Republicans have been saying for the last 20 months and, say, let us start developing more American-made energy. Let us stop transferring all of that money out of this country to foreign countries, many of which don't like us, many of which are doing everything they can to destroy us. Keep that money here and let us create jobs and wealth in this country. It would be a marvelous thing for us to be able to do.

The price of oil spiked up again today, the largest increase, I believe, in 1 day that's ever occurred. Well, we can have energy independence in this country. I am convinced of it, most people are convinced of it. Never before have we seen ourselves so dependent on other nations, and there is no reason for it.

What we have to do, though, is use the wonderful resources that the good Lord has given us in this country and use those to our advantage. Many of us have talked over and over again, in the last 2 months, particularly, about the opportunity to drill in ANWR, in the Arctic National Wildlife Refuge.

In fact, I don't think too many people have mentioned that when that refuge was set aside, there was specifically written into the bill that set it aside language that said part of that property would be used for drilling in the future.

That is simply being ignored by the Democratic majority in this House.

The other place that we need to be drilling is on the Outer Continental Shelf. Every other nation in the world that has oil and gas resources along their coastlines is tapping those resources for their benefit. We are the only Nation in the world where it is locked up.

Now next week the moratorium, the congressional moratorium will expire, and with that we have the opportunity to make that property available for leasing. It would result in huge amounts of money for this country, coming into this country. It is projected to be $2.3 trillion.

Now I happen to believe that some of that should be shared with the States, but all of that money can come into this country and we would be able to change our balance of payments once we are able to use those resources and change the whole way we operate in this country.

In terms of the bill that is being worked on to be presented to us today or tomorrow, I have some grave concerns about the fact that people are saying there are no alternatives. There are lots of alternatives to simply writing a blank check to the Treasury Department. We could again be cutting the Federal budget. We could be doing lots of other things. We could arrange to bring in the private sector to help with this transition. I know many people think the situation is really dire, but part of our problem is that our colleagues who have preceded us in this Congress in the last several years, many of them have thought that the Federal Government should be doing everything, and we have gotten ourselves into a bind by trying to fund everything in the world out of Washington. If we would pay attention to the Constitution that we are sworn to uphold in this body, then we would narrow dramatically what our scope of practice is here.

Last week I spoke on the floor about a bill that we were dealing with that was funding education programs. As I have said on the floor many, many times, it doesn't say anywhere in the Constitution that funding education is a function of the Federal Government. So I believe that we could solve most of our financial crises, and I have to believe we probably are in a crisis right now because that is what we have been told over and over again, but too many of the things that are brought up here are called crises and they are not, but I have to believe that if we would again pay attention to what the Constitution says and become fiscally responsible, we would not have to go into dire measures to deal with the problems when they come up.

And so I want to say, and much of what we are dealing with now has to do with prices having gone up and people not being able to pay their mortgages because the price of gasoline has doubled in the last 2 years. And my colleague said before we can't blame this on the Democratic Congress. I don't have a chart out here right now but I could get one in a hurry that shows that when the Democrats took control of Congress 20 months ago, the price of gasoline started going up, the unemployment rate started going up, the number of foreclosures started going up. It really is difficult to deny that those things are coincidental.

Now, I am a social scientist and I am very wary of declaring cause and effect, but the markers are simply too strong to deny the relationship of them. I think it is something that we need to continue to talk about because the bill that was passed last week by the Democrat majority did not respond to the situation that we are facing as far as energy is concerned. In fact, it did just the opposite. It made it even more difficult for us to deal with the high prices of energy in this country.

You don't have to take my word for it, the editorial pages of the major newspapers and non-major newspapers of this country agree with us. I will just quote from some of them because they have said what we have said here on the floor. We can be dismissed as being partisan, but most of these newspapers are not partisan newspapers. And, if anything, they are very liberal newspapers saying these things.

I am going to quote from the Waco Tribune editorial, September 22, 2008. It is entitled, ``Energy Package Stalls Out: Hastily Passed House Bill Appears Dead in the Water.

``Which is why it was doubling disappointing to survey the energy bill passed by the U.S. House last week. Swiftly engineered by House Speaker Nancy Pelosi and Democratic allies, it's a limp-wristed approach to pressing energy problems. In seeking to appease everyone, it satisfies no one, offshore drilling enthusiasts and environmentalists included.''

There is an editorial in the Buffalo News, September 22, 2008. ``This way, Democrats can claim to be opening the way to offshore drilling ..... under the restrictions included in the bill, no real drilling is likely to happen.''

An article from the Augusta Chronicle, an editorial, September 22, 2008. ``This just in: Nothing. That's what this Congress came up with after months of high fuel costs and concern over our dependence on foreign oil, and after a summer recess in which Senators and Representatives could have listened to the American people but did not. Congress came up with nothing--a fake energy exploration bill that would only weaken America. House Speaker Nancy Pelosi, who is devoting her career to blocking new energy for America, allowed a bill that would permit drilling for oil 100 miles offshore, which is prohibitive. Under the bill, coastal States could go 50 miles closer in--but have no incentive to, as the Democrats' bill doesn't share revenues with the States.'' The title is ``They've Blown a Ruse; Congress Fails Yet Again.''

This goes on and on with article after article saying why the bill that was passed was a sham and a joke.

Mr. Speaker, I would like to enter into the Record the remainder of these quotes from the newspapers from this week.

``If House Democrats were looking to give Americans relief at the gas pump in the energy legislation passed on Sept. 16, they failed. In a jarring twist, the legislation offers a solution and then negates it. If Americans were hoping for at least half a loaf from this legislation, they were disappointed,'' (``Energy Legislation Less Than Half a Loaf,'' Readinq Eaqle Editorial, September 20, 2008)

``Don't be fooled by House Democrats'' disingenuous bill to lift the federal government's ban on offshore oil drilling. Rather than address a shortage of supply in the face of growing demand, the bill seeks to appease angry voters without harming the Democrats' mission to force America off fossil fuels *.*.* This isn't a bill intended to tap vast untapped reserves. It's a bill intended to give voters the impression that Democrats favor offshore drilling--while maintaining their opposition to it.'' (``Drilling for Political Advantage,'' Northwest Florida Daily News Editorial, September 20, 2008)

``Coming next week from Nancy Pelosi and the House Democrats: legislation that allows oil and gas drilling on the moon! The bill would have the same result as energy legislation passed Tuesday--no increase in domestic oil production--and it certainly wouldn't be any less cynical *.*.* The Democrats' intent here is so transparent it's embarrassing. Americans know the country needs to use all its resources to power the future and speed economic recovery. That includes offshore oil drilling--where the oil is.'' (``Let's Drill for Oil--Where There Isn't Any,'' Las Vegas Review Journal Editorial, September 19, 2008)

``Pelosi, who opposes new drilling for American oil, allowed the vote only because this summer Democrats were on the wrong side of offshore exploration, which seven in 10 Americans favor. Unfortunately, the House-passed bill is nothing more than a fig leaf for Democrats as they prepare to face frustrated voters in November.'' (``Same Old Drill: 'No-Energy' Bill Risks Voter Wrath,'' The Oklahoma Editorial, September 19, 2008)

``The sudden pro-drilling makeover of the Pelosi Democrats has always had an air--a gale, really--of election-year convenience, and the House proved it Tuesday by passing an energy bill that would put any bunko man to shame. This confidence trick won't expand domestic oil-and-gas supplies even a bit *.*.* As Congress runs down the clock for this term, the likelihood of reaching some grand pre-election energy bargain is vanishing fast. The House bill shows that the Pelosi Democrats simply aren't serious about expanding domestic energy supplies.'' (``Pelosi's Drilling Ruse,'' Wall Street Journal Editorial, September 19, 2008)

``Congress may as well close the windows, lock the doors and take a vacation. If the energy bill the House passed Tuesday night is any indication, the lower chamber is already out to lunch *.*.* The House this week finally responded, tweaking the drilling bans just enough to pass a bill that Republican leader John Boehner correctly calls `a hoax.' '' (``Energy Bill is a Dry Well,'' Bend Bulletin Editorial (OR), September 19, 2008)

``On Tuesday, House Democrats made an embarrassingly weak attempt to protect themselves *.*.* Therefore, House leaders produced a ``compromise bill'' and quickly moved it to a vote. It passed along largely party lines, and Democratic incumbents in tight races can claim they voted for drilling. Voters should not fall for that old trick.'' (``Democrats Drill for Political Cover,'' Roanoke Times Editorial, September 18, 2008)

I want to say to my colleagues who are going to be here during this hour talking about this issue, we have many, many alternatives to giving a blank check to the Treasury. We have many, many alternatives to the bill that was passed last week by the Democrat House.

Republicans know that. Republicans have presented those in the American Energy Act which we have proposed. I want to say that I for one, and I believe my colleagues are pro-American energy, and we are waiting for our Democrat colleagues to leave their anti-American energy stance and join us in being pro-American energy.

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