Default Prevention Act

Floor Speech

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Madam Speaker, this unquestionably is one of the most dangerous bills that we will be considering in this session of Congress because this gives this body permission, for the very first time in our Nation's history, to default on our financial obligations.

They claim that they are splitting the baby here by paying bondholders only. One of the largest bondholders we have, of course, is China, so this is a pay China first bill.

I have a feeling that the financial markets, the investors, and the credit rating agencies will view this for what it is however: a default is a default is a default.

A great nation like the United States of America should pay our bills. We should pay our bills.

Now, no one can stand here or sit here today with complete certainty and tell us what the market reaction would be if we start defaulting on any financial obligations we have as a nation, and that is really the point. Why would we even take that chance? Why would we take a chance of a downgrade to our credit, of an increase in interest rates which would impact everyone, from small businesses to families to farmers? It would drive up borrowing costs, which would act as a brake on economic activity and the job growth we have right now because we have never done this before. That is the danger that this legislation sets up.

If my friends on the other side are so concerned about debt and overspending, then perhaps they ought not have supported legislation this year alone--bills that they have passed--that would increase our national debt by $1.5 trillion over the next 10 years because you refused to pay for the tax cuts or the spending increases that were in that legislation through offsets in the budget. That may come as news or surprise to the other side, but the Congressional Budget Office score is $1.5 trillion of new debt over 10 years based on legislation you supported: repealing SGR, $141 billion; permanent expensing, $380 billion; get rid of the estate tax, another $180 billion, and others. It adds up to 1.5.

So if there is so much concern about excess spending and debt and what it is doing to our economy, then maybe we ought to look at ourselves first and the action that is being taken on this House floor.

We should not go down this path. We should stop creating the uncertainty and dysfunction coming out of Washington and give the economy a chance to recover.

I encourage my colleagues to reject this legislation.

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