Madam President, I come to the floor today with a great sense of urgency. We are less than 1 week away from reaching our debt limit. If we fail and we falter, the United States of America will be irrevocably fractured. We aren't at an…
Madam President, I come to the floor today with a great sense of urgency. We are less than 1 week away from reaching our debt limit. If we fail and we falter, the United States of America will be irrevocably fractured. We aren't at an impasse; we are at the edge of a cliff. Unless Congress acts, we are going to go over it.
What will be the consequences of it? If we do not meet our obligations to pay our debts, it will result in a default, and default will result in enormous increases in interest rates. For Americans who are so worried about tax increases, I've got to send a real red alert. When interest rates go sky high because of our failure to act, it will be the biggest tax on America that we could have, and it will be a tax at the kitchen table. It means if anyone has a variable-rate mortgage, it will skyrocket.
If you have a student loan, that interest is going to increase. If you have a car loan, forget it. The payments are going to be enormous. So we need to face what this means: raising the debt limit. We need to prevent the default so our bond rating is not lowered.
I have never been big on talking about bond ratings, but this is a crucial one. We now have a AAA bond rating. So what does that mean? It means when they buy our Treasury bills or other government-secured investments, but particularly our T-bills, it is as good as gold. If we are downgraded, we could just be a tinhorn, tin-cup nation. This is not the United States of America. This is not what people fought and died for.
When people say they represent a party that wants to defend the Constitution, we all have to defend the Constitution. Right now, defending the Constitution and defending America is to lift our debt ceiling and get to the hard work of, No. 1, dealing with our debt but also dealing with job growth.
We have to get to work. Instead, we are busy at work playing the blame game. Squabbling is not a solution. But I believe we Democrats do have a solution, and I think the solution does lie in the Reid proposal. The Reid proposal the majority leader has offered is substantive, it is real, and it is achievable.
I was on TV yesterday, and they said: Oh, you are a liberal Democrat. Well, I don't know if I am a liberal, I don't know if I am a conservative, but I will tell you what I am. I am a diner Democrat. I think about the people. I think about the ordinary people, and I think about their day-to-day needs. When people talk about what kind of solutions they mean, they want everything on the table. What I want on the table are the things that affect the kitchen table. That is why I support the Reid proposal. It is an achievable framework for avoiding default and downgrade of our bond rating now.
What does it do? It has three important elements.
One, timing, to take us through 2012. It is not about the next election. It is showing we are serious and we are substantive.
Second, it has important content where we do cut Federal spending. It's observable, it's quantifiable, and it's verifiable.
No. 3, it gives us a path forward to deal with the important issues of entitlement and revenue reform. Wow.
So why can't they take it? I am puzzled about why they can't take it. Is it 2012? OK. Who knows who is going to be in control of either the White House or the Congress then? But it can't be about us. It is not about me. It is about we--we, the people.
Let's go to the content. There are substantial cuts there in discretionary spending. And there are substantial cuts to defense spending that do not affect readiness or military health care. These are actually cuts that the House voted for in the Ryan budget. So a few weeks ago, they said yes to the cuts. But when we say yes to the cuts, they say no to the proposal. I don't get it. But it's not whether I get it. It is that we have to make sure we get a solution.
What I think is important about the Reid proposal is it is $2.7 trillion in cuts. I understand CBO has scored it and they say it is $2.2 trillion. Well, $2.2 trillion, $2.7 trillion, that is real money. That is real money, and it shows we are serious.
It also provides this important path forward called a Joint Committee. It is not a commission where it is going to be outsiders who are experts from think-tank environments and hoo-ha, hoo-ha. It's Members of Congress, both sides of the aisle, both sides of the Dome. Let's get it together with them, and then let's have this committee where we then move forward on the reform of revenue as well as looking at entitlement reform.
I want to be clear that if, the horror of all horrors comes where we fracture the standing of the United States of America, not only in the financial markets but in the standing of the world, it will have very serious consequences.
The President is going to have to pay the bills based on whatever money is coming in. He would not be able to borrow. America would not be able to borrow. So our T-bill will not have the same value it once did. He is going to have to pay our bills.
What are the consequences on federal benefits? One is paychecks. The first paycheck he is going to meet is the paycheck for our troops. He has to make sure that if they are fighting to defend America while we are squabbling around and screwing around, we are going to pay our troops. My God, did it ever occur to anyone that our troops wouldn't get paid? Yes, it is going to be tight.
So we pay the troops. We are going to certainly pay our veterans' benefits. They might not be the same amount the first month, but we will kind of squeak through. Then, it will be Social Security. Well, maybe the checks will go out, but maybe it will only be at half the amount. But the Social Security offices will be closed. So benefits will have a direct impact.
Where is he going to slow down the trickle of money? To State and local governments. So what does that mean? Community development block grant money, education, and so on. That is going to cause enormous layoffs of public employees and contractors at the State and local level. The asphalt contractor, the person who handles the office machinery, minority contractors, and so on--all that small business they love to romanticize over are going to have a big impact.
Then the Federal Government will definitely have to slow down or not pay at all contractors, whether it is the big defense guys that employ thousands and thousands of people or it is the small- to medium-sized businesses, like the ones in my own State that do information technology?
We are about to destroy the reputation and solvency of the United States of America. We are about to destroy the reputation and solvency of the United States of America not only for one day but for a decade and maybe the rest of the century. This is not being done by an outside power. We are spending $700 billion on defense, and we are destroying ourselves by a self-inflicted wound because of political dysfunction, political rigidity, and political ideology. What the heck is this? I could even use more intense language. What we are about to do, we cannot allow this to happen.
One of my colleagues said to me yesterday, Senator Mikulski, what would it take to get you to the table? I said: Get me a plan and 30 Republican names behind it; I will see if I can support the plan and get 30 others.
I know my time is up, but I don't want the time to be up on America. Let's come together. Let's stop being Democrats, let's stop being Republicans, let's call us what we should be called: Americans.
What do Americans do? When the times are tough, the tough get going. Let's get going. Let's make the tough decisions. Let's put politics aside, put America No. 1, and get us back on track.
I yield the floor.