Madam Speaker, I yield myself such time as I may consume. I wanted to state the facts here so everybody understands them. We have called this--as the Speaker has, in essence--Paying China First, and so many others, except for Social…
Madam Speaker, I yield myself such time as I may consume.
I wanted to state the facts here so everybody understands them. We have called this--as the Speaker has, in essence--Paying China First, and so many others, except for Social Security beneficiaries, come last, come next, if at all. And here's the reason: of the prioritized debt covered by this bill, 47 percent is foreign owned, and China bondholders are the largest ones of that foreign ownership.
So, essentially, what this bill says is, okay, let's pay China and the other foreign bondholders first, not American troops, not disabled veterans, not physicians, providers who treat Medicare patients, not small businesses holding contract obligations from the United States, school lunch programs secondary, medical research, Pell grants, taxpayers due refunds, and, interestingly, other Federal trust funds holding Treasury bonds, Medicare, deposit insurance, et cetera, et cetera. That's the fact. That's the fact.
So why do this? Well, it is said let's do this because of the importance of paying the bonds in terms of our economy and in terms of our bond rating.
Let me just say a word about bond rating. Here's what Fitch has said:
It is not assured that the Treasury would or legally could
prioritize debt service over its myriad of other obligations,
including social security payments, tax rebates, and payments
to contractors and employees. Arrears on such obligations
would not constitute a default event from a sovereign rating
perspective, but very likely prompt a downgrade even as debt
obligations continued to be met.
It was interesting that S&P, who already downgraded us, said this:
Still, sudden cuts that shave off, say, 6 percent of the
GDP-to-spending ratio would cause economic panic and could
affect ratings.
So, why is this being done when a former Bush administration economist said the result is ``a bloody mess,'' or another Bush administration official said ``prioritization is impossible.'' Is the government really going to be in the position of withholding benefits, salaries, and rent contract payments in order to pay off Treasury bondholders?
So why is this being done? It's not going anywhere in the Senate. The President opposes it. I think the reason, apparently, it's being done is to satisfy some within the Republican caucus or maybe to try to provide some leverage in terms of bargaining with the Democrats.
This is playing with fire, though, with the economy of this country. Those who vote for playing with this fire are going to burn themselves. But I think most significantly, they're going to burn the economy of the United States of America.
I've tried to figure out who the Pied Piper is of this proposition. It's hard to figure it out. But those who followed that Pied Piper in the Republican ranks, those who vote for it essentially are moving towards the cliff following that Pied Piper; but, worse off, it places this country once again and its economy in danger of going over the cliff. This is not only a mistaken idea, it's really a rotten one. Let's vote ``no.''
I reserve the balance of my time.
It is now my pleasure to yield 3 minutes to our distinguished whip, the gentleman from Maryland (Mr. Hoyer).
I yield the gentleman an additional 1 minute.
I yield myself 10 seconds.
Now, this bill not only contemplates default--it plans for it. Default is default is default.
I yield 1\1/2\ minutes to the distinguished former chairman of our committee, the gentleman from New York (Mr. Rangel).
(Mr. RANGEL asked and was given permission to revise and extend his remarks.)
I yield the gentleman an additional 30 seconds.
Madam Speaker, I yield myself 15 seconds.
I want the record to be clear: of the public debt prioritized by this bill, foreign holders own 47 percent and China holds 22 percent of that.
I now yield 1\1/2\ minutes to another distinguished member of the Ways and Means Committee, Mr. McDermott.
(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)
I now yield 1\1/2\ minutes to the gentleman from Georgia (Mr. Lewis), another very distinguished member of our committee.
I now yield 1\1/2\ minutes to the gentleman from Massachusetts (Mr. Neal), another very distinguished member of our committee.
(Mr. NEAL asked and was given permission to revise and extend his remarks.)
I now yield 1\1/2\ minutes to the gentleman from Connecticut (Mr. Larson), another distinguished member of our committee.
I yield 1\1/2\ minutes to the gentleman from Oregon (Mr. Blumenauer), another distinguished member of our committee.
I yield 1\1/2\ minutes to the gentleman from Wisconsin (Mr. Kind), another distinguished member of our committee.
I yield 1\1/2\ minutes to the gentleman from the great State of New Jersey (Mr. Pascrell), another distinguished member of our committee.
I now yield 1\1/2\ minutes to another member of our committee, the distinguished gentleman from New York (Mr. Crowley).
(Mr. CROWLEY asked and was given permission to revise and extend his remarks.)
It is now my real pleasure to yield 2 minutes to the ranking member on the Budget Committee, the gentleman from Maryland (Mr. Van Hollen).
I now yield 1\1/2\ minutes to a distinguished Member, the gentlewoman from Pennsylvania, Allyson Schwartz.
Can I ask our distinguished Speaker how much time remains on each side?
I now yield 1\1/2\ minutes to the distinguished gentleman from Texas (Mr. Veasey).
So, Mr. Camp, are you ready to close this part of our debate?
How much time remains?
I just want to read the facts why this bill essentially says ``China first.'' I want everybody to understand this isn't rhetoric; this is reality.
The Republicans, under this bill, prioritize $14.3 trillion in debt, of that, $2.7 trillion in Social Security and $11.6 trillion in public debt. Of that public debt, $5.6 trillion is foreign. So when you come up and talk about all of the American public, you are not talking about what is in this bill. And of that foreign debt, the largest creditor is China, with over $1 trillion.
So it's absolutely true that essentially what you're saying is pay the largest of the foreign creditors instead of American troops, veterans, physicians, school lunch programs, universities doing medical research, taxpayers getting refunds, and other Federal trust funds holding Treasury bonds, Medicare--these are Americans'--deposited insurance, highway trust funds, et cetera, et cetera. That's the fact.
Now, there's some effort here to say, oh, we're not defaulting. Yes, you are. You're not defaulting on sovereign debt, but you're defaulting, except for Social Security, on everything else. Republicans are becoming lead defaulters in terms of paying our debt.
As I said earlier, the credit agencies have said, and I'll close with this:
It is not assured that the Treasury would or legally could
prioritize debt service over its myriad of other obligations
. . . but very likely prompt downgrade, even as our debt
obligations continued to be met.
This is a drastic, serious mistake. Vote ``no.''
I yield back the balance of my time.
Madam Speaker, I rise in opposition to the amendment.
I yield myself such time as I may consume. I'm just going to speak for a short time and then yield.
I respect the chairman of the committee; we've been friends for a long time. It's really sad this amendment is here. There can't be money used under the bill for salaries. There's no lack of clarity here. Essentially, this is an effort to give some kind of fig leaf, or whatever it is, for a terrible, terrible bill.
I reserve the balance of my time.
I yield 2 minutes to the gentleman from Maryland (Mr. Hoyer).
I yield the gentleman 1 minute.
I yield that minute and a half to the vice chair of our caucus, the gentleman from New York (Mr. Crowley), a member of our committee.
I will use it by saying, a default is a default is a default. This bill is a serious mistake, as is the amendment. People can do what they want on the amendment. Vote ``no'' on the basic bill.
I yield back the balance of my time.
Madam Speaker, on that I demand the yeas and nays.