Mr. Ross, again, as always, it is a pleasure to join you on the floor. And I can tell you that our folks down in Georgia are really, really concerned about the debt, as they are all across this Nation. I think it is important for us to…
Mr. Ross, again, as always, it is a pleasure to join you on the floor. And I can tell you that our folks down in Georgia are really, really concerned about the debt, as they are all across this Nation.
I think it is important for us to really draw some dramatic pictures of just how devastating this debt is. And you talked a few minutes ago about one feature that I want to spend just a few minutes on at the outset before we go into some of the other areas. But I think the American people need to understand this issue of foreign debt, of our indebtedness in the hands of foreign governments.
Now, I want to say right up front that we have no problem with doing business with other countries, we have no problem with having indebted relationships with other countries. But when you look at this sterling fact, you will say enough is enough. And the one glaring fact is that in the last 5 years, Mr. Ross, and Mr. Speaker, this President in collaboration with this Congress, because the President couldn't do it by himself, we all must take blame. But we have borrowed more money from foreign governments and foreign financial institutions in the last 5 years than in the entire preceding 211 years of existence of the United States of America. Think about it. Since 1789 up to 2001, we borrowed $1.4 trillion from foreign governments.
In the last 5 years, we have borrowed over $1.6 trillion just in the last 5 years. That alone is enough to scare the pants off of anybody.
It is paramount, if we are going to say with any kind of a way in which we can look the American people in the eye and say we want to be good stewards of your money, we want to have financial security in this country, financial stability, then the wrong thing for us to do is to have this kind of indebtedness in the world.
Now, let's look at where that indebtedness is. Up against a screen of what the world looks like as particularly as we look at the war on terror, that is of paramount concern. Where are we borrowing this money from? You went through the litany just now of the top ten places. They are concentrated in the Middle East, OPEC countries, and they are concentrated in the Far East, very, very volatile insecure places, and with countries particularly like China that is not exactly playing the way they need and should play as we tackle this war on terror.
Then, if we add the oil dependency in and the energy dependence on the Middle East and where we are borrowing money from, coupled with what is happening over there right as we speak,
who is it that apparently, as of this time, is running the Middle East?
An interesting thing happened to me when I was in the Middle East not too long ago. I went up and traveled up on the Golden Heights. And if you go up on the Golden Heights and you go far to the outposts in that northeast boundary of Israel where Syria and where Lebanon are on one side, then you have Syria, and I looked over through the high-powered binoculars that the Israeli people had that we could look over the border. And do you know what I saw, Mr. Ross? Do you know what I saw, Mr. Speaker? It wasn't the flag of Lebanon that was flying, it was the flag of Hezbollah. That tells you something.
The point that I am saying is not only is it against our financial security to have so much indebtedness in that unstable part of the world with some of those regimes, but it is not in the best interest of our national security as well.
Now, on the other side of borrowing the money is an issue that we certainly need to touch upon, Mr. Ross, and that is the amount of money that we are spending and giving these countries just to borrow the money, the interest. It is the fastest growing element in our budget, over $185 billion just this past year we paid in interest just to borrow the money, which is more than what we spend for veterans, for education, to protect the environment, all together.
So the point I am simply saying is that as we examine this issue, and like I say, I don't look at this as a partisan issue, I look at this as an American issue, an issue that we have all got to jump in here and deal with. This is the future of our country. And if we don't have financial security, we certainly are not going to have national security for long.
Absolutely correct, and as we cannot talk about accountability, we cannot talk about the budget financial responsibility, national security without examining where we are in Iraq at this time.
And we cannot do it for the obvious reason that the American people are expecting us now to ask the questions
and to finally stand up as a Congress and do what the Constitution and the Founding Fathers laid out the Congress to do. They laid out the Congress to do two essential things. One was to determine how our tax dollars are appropriated, all of that starts here, and the other is oversight, and we have not done a good job of oversight.
That is one of the reasons why the American people, in many ways, are very frustrated. We have not asked the tough questions. Some of us have asked the tough questions but not enough of us, and I am so thankful for the Dubai incident because that opened up everybody's eyes to really see. When that Dubai incident happened and all of the sudden we were going to turn over port security to the United Arab Emirates, a country in which we knew from our intelligence that terrorist financing was emanating from, a country that owned Dubai, that owned the company which we know was sending nuclear fusion material into Iran, and that did have direct financial relationships through their connecting financial centers in terrorist financing with al Qaeda, all of this came to our attention.
When the administration said we are going to turn our port security over to a company owned by this country, it woke us all up; and finally, in a bipartisan way, we stood up and we rejected. That, to me, was a turning moment when Congress stood up and said let us be the Congress.
So I think that Congress has a responsibility, definitely under the Constitution, to conduct oversight of the executive branch. We failed to conduct meaningful investigations of allegations of serious waste, fraud and abuse, much of what you talked about with Halliburton, and the people are expecting us to do this.
Now, in the situation in Iraq, and let me just digress for just one moment, because I agree with you, President Bush is very good at saying, well, if you do not agree with me, you are weak on national security or you do not care about the war on terror. Nobody, there is not a Congressman in this place that stands stronger for national security, defense and support of our military than you and me and our Blue Dog Coalition. Our record speaks for itself.
I have been to Iraq. I have been to Afghanistan. We all have been there to see about our soldiers. We know and we care, but the question has to be asked now, What are we doing there? What is the mission?
I mean, when we decided to go in, I was not here to cast that vote. I was the first class of Congress to come in after it was decided, but the decision was made to go because we had evidence that came to us.
Colin Powell went before national television and went before all of us and laid it out. We took them at their word. We took them at their word that Saddam Hussein had the capacity and demonstrated evidence of having weapons of mass destruction, that there was evidence that there was a direct link and relationship between al Qaeda. It was there. It would have been foolhardy for anybody to stand up and say you do not care about security to ignore that.
We took the administration at the value of truth and we supported that to go in. We sent our troops into harm's way. We discovered there were no weapons of mass destruction. Okay. Job done. Should have been complete. Fine. Let us head on out of here. We have done the mission.
But then the mission changed, on the dime. It then became we have got to get Saddam Hussein. Well, our soldiers went to work, did a remarkable job, found him in a hole and pulled him out. Mission accomplished. We were there. Then the mission changes again. We have got to rebuild the country. We have got put democracy in place. We have got to have free elections.
Well, our soldiers went to work. They did not go over there to nation-build. They went over there to find weapons of mass destruction, but they become nation-builders. We got in there. Now all of the sudden we are into a civil war. We are into a situation there, terribly trying to climb out.
We have got to solve this situation, but Congress has got to roll up its sleeves and play a clearer role and a more definitive role in how the American taxpayers' dollars, how we are being good stewards of their tax dollars in national security and financial security and all that we do.
I want to just comment on, if I may, for a moment on the responsibility in terms of getting fraud and abuse and mismanagement of the taxpayer dollars out in the open. I just want to share a couple of points here. One is in fiscal year 2005, auditors of 19 of 24 Federal agencies could not routinely produce reliable, useful and timely financial audit information according to the General Accountability Office.
In fiscal year 2003, $25 billion of taxpayers' money went unaccounted for according to the Treasury Department. That unreconciled money could have been used to fund the entire Department of Justice for a full year, according to the conservative Heritage Foundation, not a liberal foundation. This is the Heritage Foundation. They stated this point.
Mr. Speaker, I want to mention just one other point, too, that I think we need to bring out and that is government contracting under the Bush administration. We cannot be fearful to do our jobs. We get out here and we run every other year and we tell people we are going to go up there and do the job of a Congressman.
As I mentioned, there are two things we have got to do: make sure we are good stewards of the taxpayer dollars and then do the oversight. Well, here is what our oversight has pulled out.
Between 2000 and 2005, the value of Federal contracts increased by 86 percent, from $203 billion in 2002 to $377.5 billion in 2005. This growth in contracting was over five times faster than the overall inflation rate and almost twice as fast as the growth in other discretionary Federal spending over this period; and as a result of the rapid growth in procurement spending, nearly 40 cents of every discretionary Federal dollar now goes to private contractors, a record level, and Federal procurement spending is highly concentrated on a few, just a few, large contractors with the five largest Federal contractors receiving over 20 percent of the contracting dollars awarded in 2005.
The fastest growing contractor under the Bush administration has been Halliburton. Federal spending in Halliburton contracts increased over 600 percent between 2000 and 2005.
All I am saying, Mr. Speaker, is we have got to look and examine how the taxpayers' dollars are being spent. I mean, you are talking about 24 cents out of every dollar we make we are spending. Ought not we ask these serious questions? Ought not we do the people's business of making sure how their money is being spent?
I just want to mention quite quickly, because I want the American people to understand that while we as Democrats are here and we are critiquing, we are providing the results of this oversight.
And when you look at the front page of the USA Today on yesterday, they reported an interesting fact. They said that the Federal Government is now spending 20.8 cents of every dollar we make, of every dollar produced in this country, the Federal Government is spending 20.8 cents. That has increased in the last 5 years. That percentage was only 18.5 percent in 2001.
This is serious business. And I am here to tell you that when you get out in the District, when you get out to my folks down in Georgia, they are concerned about their money. They are concerned about what we are doing up here to bring down this debt and bring some accountability to the finances of this country. We can't have this runaway train. We can't have this debt being held in the hands of foreign governments the way it is. We can't continue to be borrowing all of this money and laying it on the backs of our children and our grandchildren. This is not our money. It is the people's money. We have to start treating it much better.
Now, what are we going to do about it? And I think the American people are probably saying, okay, we are listening to those Blue Dogs down there and they are talking about President Bush and the Republicans, but what are they going to do. Why don't we hear from you and see what you are going to do about this.
Well, I want to offer and let the folks know that we Democrats are offering to do a couple of things. I want to draw attention, so that the American people will know, that we in the Blue Dog Coalition have a proposal that will restore accountability. It is contained in House Resolution 841 by our good friend from Tennessee (Mr. Tanner), and it will require congressional hearings. Because remember what I mentioned at the first. We have two basic functions here, one is oversight and the other is tax allocation.
So within 60 days of an IG report that identifies waste, that identifies fraud, that identifies abuse, that raises a red flag of mismanagement of more than $1 million, we immediately trigger congressional hearings. Let us get it before C-SPAN. Let the people know. Let us put the spotlight on it. Let us immediately say, whoa, whoa, this is wrong here. Let us have hearings on this and let us have oversight and insight into this issue.
When the GAO names an agency high risk for mismanagement, that is cause for a hearing so that we can open that up and find out what is going on. You can't stick your head in the sand. That is bad management. That is not oversight. That is not taking care of your money. If your credit card runs up, mom and pop down home, they have to watch that. Red flag comes up, mom and pop are going to sit down at the kitchen table and say, wait a minute, we have to rein in some stuff here. Where is this money going; why is this happening. If mom and pop around the kitchen table back in Georgia can do this, surely this Congress must do it and be responsible for the money.
At least twice a year to have hearings to review the Office of Management and Budget's performance based review, called program assessments rating, part two.
Then we have another bill, H.R. 5315, by our friend from California, Representative Cardoza, another distinguished member of this Blue Dog Coalition, called Accountability in Government Act of 2006. It will require that each Federal agency produce an audit within 2 years that complies with the standards established in the Federal Financial Management Improvement Act of 1996.
Why pass the Act in 1996 as a tool if we are not going to use it? Congressman Cardoza is saying let us pull it out and let us use it. Let us have a measuring device.
Secondly, that the Senate should hold reconfirmation hearings on any cabinet level official whose agency cannot fully account for its spending within 2 years.
We have had agency after agency come before us. I am on the Financial Services Committee. We have the Treasury Department come, we have HUD, we have all these agencies coming before us that we are accountable for, and time and time again, I ask them the question, where did this money go? Do you have a measuring system in there? Do you have accountability? Well, no, Congressman, we just don't have it.
We have to hold everybody's feet to the fire and bring financial security back into America's government.
And finally, Mr. Ross, we must begin to search and use our creativity to develop a way to put a curb, a ceiling, some restraint on how much we can borrow from foreign governments.
If there is one danger down the road that this country faces, history proves me out, the bleached bones of civilization that go far back of civilizations that waited too late to curb their borrowing from foreign countries. You look at so many of these great civilizations that have gone and nations, wars that happened. What happens if China over there just all of a sudden wants to sell our paper to another competing economy? When you have so much of your wealth, so much of your financial security in the hands of other countries who do not have your best interest at heart, we are asking for trouble.
So that is why I say, finally, we must put a curb on how much money we can borrow and get in debt from these foreign governments.