Mr. President, I want to start out today by complimenting the Senator from South Dakota. He has gotten it absolutely exactly right. I wish to associate myself with the comments he has made. We are 7 days away from literally a crisis in our…
Mr. President, I want to start out today by complimenting the Senator from South Dakota. He has gotten it absolutely exactly right. I wish to associate myself with the comments he has made.
We are 7 days away from literally a crisis in our country. We are down to a point where it is getting even difficult to try to figure out, with the timelines naturally built into the process, how you get from here to there in 7 days, and yet that is what faces us.
Last night, like many Americans, I watched and listened to the President and listened to Speaker Boehner. I must admit, when it comes to the comments made by the President, I do not understand where he is coming from. He talks about higher taxes and more revenue when the reality is, at this late date, he is the only one talking about that.
I have been one of those people who has said for a long time we absolutely need to engage in a process of reforming our Tax Code. It is too complicated. It is almost an antigrowth piece of work. I am anxious to work with my colleagues. But with 7 days left to try to suggest there will be a massive amount of new taxes does not make any sense. That is not in the Reid plan. It is not in the Boehner plan. Yet there it is.
Well, here we are. We are literally 7 days away. As I said, as I watched those comments last night, it looked to me like campaign rhetoric. It looked like positioning for the next election. It looked like class warfare. What it did not look like to me was Presidential leadership. Yet our creditors around the world are watching this debt limit debate unfold, and they are as shocked as all of us are by the lack of leadership coming out of the White House.
This weekend, the President was presented a bipartisan approach. I found it reassuring over the weekend to know that our leaders in the Senate here were talking and trying to work their way through this terribly complicated issue, very difficult issue. I thought with that kind of effort, when an approach was presented to the President, he would naturally embrace the approach. With only 1 week left, that made the most sense to me. Yet, surprisingly, the President rejected the approach. The reason? Well, the reason is, as he has said so many times, the President does not want to have to deal with increasing the debt limit next year during his campaign for a second term.
I find that shocking since last night, when he addressed the Nation, he expressed great concern about our debt limit negotiations being in a stalemate. Yet he could have used that opportunity by accepting the bipartisan proposal that had been presented to him a day or so earlier. He had the opportunity to show the type of leadership our country needs and is crying out for, but he decided to reject the plan and retreat to political talking points.
The President also said he would veto Speaker Boehner's approach to raising the debt limit for 7 months, claiming it kicks the can down the road--claiming that is what it would be.
Let's look at that. Let's examine what the President is trying to convince this Nation of. Over the last 25 years, Congress has increased the debt limit 31 times. Mr. President, 22 of those 31 times were for less than a year. Yet the President claims he will veto anything not extending into 2013? It defies logic to decry our debt and then veto anything unless it allows more record-setting debt. That is exactly what he is pledging he will do: veto anything less than the largest debt limit increase in the history of the United States of America--the largest.
His last debt limit increase in January was the largest in history at that point--$1.9 trillion--yet instead of hitting the brakes and saying, ``Whoa, time out, this is getting us in trouble,'' the President is doubling down, demanding yet another record-setting budget buster.
Who does the President think is going to pay off all this debt? It will be our children and our grandchildren. Passing multiple trillion- dollar debt limit increases without addressing our addiction to spending does far more to kick the problems down the road. It sends the problems over the cliff, in fact. Yet, despite this reality, the President continues to accelerate, as we get closer and closer to the cliff. The President recently said this:
The only bottom line I have is that we have to extend the
debt ceiling through the next election, into 2013.
While numerous issues accompany this line of thinking, let's hit some high points.
Our national debt is more than $14 trillion, and the President is requesting to increase it to $16 trillion--the largest in our Nation's history. So why is the bottom line only about the length of the extension, not about spending reductions that put our country back on track?
Unfortunately, the President's only fundamental concern is how do we kick this past the next election. Above all else, not good policy, not what is best for our citizens, but the No. 1 goal is how to get past the next election. This is, unfortunately, his bottom line. Simply astounding that the campaign of hope and change has become such business as usual. Simply raising the debt ceiling absent any meaningful spending reforms will not work.
Now we find ourselves in one heck of a mess. With about a week to go, the latest in the debt limit saga is a proposal that was introduced last night by Senator Reid. But here is why this latest plan has so many problems. Policywise, it does not hold together. The plan claims $1 trillion in savings from reductions in troop forces. These savings assume the troop surge extends into perpetuity, which never was the plan. So it assumes savings from stopping spending that was never scheduled or even requested. It is like reaching into the air and grabbing savings. Essentially, this plan counts savings that were scheduled to happen.
Second, the plan counts $400 billion in interest savings on that savings relative to the troop money that was not going to be spent, was not asked for. In other words, not only does the plan count nonexistent savings, it then compounds the policy problem by counting nonexistent interest savings on that savings. You simply cannot count savings that were never intended to happen.
We are dealing with a ticking timebomb here. We have rating agencies saying: My goodness, your debt is so out of control that unless we see a plan, we will not be fooled by the gimmicks. Yet this policy approach does not hold together. You see, the rating agencies, justifiably so, want to see real budget savings that actually help to improve our balance sheet.
We are at a critical time in our Nation's history. With 1 week left, the American people are yearning for bold leadership, not another shell game. Heated rhetoric and charged accusations are not going to fix the fiscal situation.
I stand ready to work with my colleagues on a solution, and I urge the President to do the same. Let's quit defending what is indefensible; that is, worrying about getting the can kicked down the road past the next election, and let's try to figure out how best to address this.
There was a plan that came out recently. It was a plan dubbed from the Gang of 6, and the Presiding Officer and I have had some interest in that plan. But we all acknowledge it is going to take time to put that plan in place, to debate that plan, to bring it to the floor, to do the things that are necessary. We have to take action now. I am a part of a group that says: Look, let's take a long hard look at that plan. Let's see if that is the plan we can move down the field to success.
But we have just 7 days left. We need to face the reality that 7 days from now we will be within hours of hitting our debt ceiling. Incidentally, to those who are arguing: No, it is not August 2, well, if it is not August 2, it is close to August 2. We are facing a real problem where there will not be enough money to pay the bills.
Many say: Pay the interest on the debt. Make sure you get that done. I am not opposed to that. I do not want to default on our debt. But that means we have about 50 cents on the dollar in August, according to a cashflow statement done by the Bipartisan Policy Group, and that means that 50 percent of those out there who would otherwise receive some type of payment from the Federal Government will not get it because there simply is not enough money to pay the bills.
So what does Speaker Boehner's plan do?
Well, it is a plan that is realistic. It says, look, we have to come to grips with where we are in the next 7 days or we can simply suspend rational thought, believe that the record-breaking debt increases to accommodate record-setting debt are somehow a plausible course. It is not.
I am more apt to believe the President's own words. When the debt limit increase was $781 billion to raise our borrowing authority to $9 trillion, then Senator Obama was in the place where we are in today, deciding on whether he would vote for a debt ceiling increase, and he called the situation then a ``failure of leadership.'' He went on to say ``increasing America's debt weakens us domestically and internationally.''
Well, we were at $9 trillion then, an unforgivable amount of money. Today we are at $14.5 trillion, and the steam engine is firing away, building up more and more debt.
Senator Obama's words were as truthful then as they are today. Yet now he has done a 180. His Presidency has hit the turbo booster when it comes to record debt.
Mr. President, I yield the floor.