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Senate Proceeding on Aug 7th, 2009 :: 2:07:35 to 2:15:30
Total video length: 2 hours 45 minutes Stream Tools: Stream Overview | Edit Time

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Jeff Sessions

2:07:12 to 2:07:36( Edit History Discussion )

Jeff Sessions: rates that we saw in the late 1970's, it could be $1.3 trillion, $1.29 trillion. that's just interest one year that we would have to pay, one year's interest, $1.3 trillion. our total budget today is about $3 trillion this is more than one-third of

Jeff Sessions

2:07:35 to 2:15:30( Edit History Discussion )
Speech By: Jeff Sessions

Jeff Sessions

2:07:42 to 2:08:02( Edit History Discussion )

Jeff Sessions: the budget this congress, house and senate, understand the seriousness of this problem, because just look at the bills that go through he i'm a big supporter of bills. i voted for farm bills in other years.

Jeff Sessions

2:08:03 to 2:08:24( Edit History Discussion )

Jeff Sessions: but i couldn't vote for it this year, it had a spending under the agriculture bill. 14%. un, it's 7% return, your money doubles in ten years. at 14 years, the ag budget will double in five years. at a time when we're running

Jeff Sessions

2:08:25 to 2:08:46( Edit History Discussion )

Jeff Sessions: unprecedented debt, we go up 14 burst. this is difficult for me to comprehend. i don't think we're serious about it. now, the house has put in three airplanes so members of the congress can take trips with presumably somebody, somewhere needs to be asking, where are we going to get this money? every dime of it will be borrowed. the $800 billion that we passed

Jeff Sessions

2:08:47 to 2:09:10( Edit History Discussion )

Jeff Sessions: earlier this year supposed to stimulate the economy, keep the unemployment rate from going up and cause economic growth to occur, that $800 was borrowed. we didn't and the first automobile clunker

Jeff Sessions

2:09:11 to 2:09:31( Edit History Discussion )

Jeff Sessions: bill, $1 billion on top of that. it wasn't even paid for out of the stimulus bill. it was new billion dollars. and then the new clunker bill that passed here last night, in the house, they said, well, it was going to come out of the stimulus package and, therefore,

Jeff Sessions

2:09:32 to 2:09:53( Edit History Discussion )

Jeff Sessions: it wouldn't add to the debt, because we've already authorized this stimulus money to be spent. but that's not what the house le they promised that they wouldn't reduce any of the spending that was provided for in the $800 billion stimulus package. only 11% of it has been spent to datement

Jeff Sessions

2:09:54 to 2:10:14( Edit History Discussion )

Jeff Sessions: money out of that to fund the clunker program. they promised with any equivocation that they would replenish that moneyrom some other source. what other source is there? to borrow money. they had to -- they're going to

Jeff Sessions

2:10:15 to 2:10:35( Edit History Discussion )

Jeff Sessions: borrow that money descroapt to reduce any of this spending they -- money so they don't have to reduce any of this spending they plan to do under the stimulus package. the t record a. debt this past year. unbelievable amount actually. the treasury department said wednesday it's going to sell a record $75 billion in treasury

Jeff Sessions

2:10:36 to 2:10:57( Edit History Discussion )

Jeff Sessions: bills next week so we can pay -- pay all these obligations, all these expenditures that we have appropriated the money f we don't have the money so we've got to borrow it. in particulay, the treasury officials need to ensure demand from china -- that is, china's purchasing of our

Jeff Sessions

2:10:58 to 2:11:19( Edit History Discussion )

Jeff Sessions: treasury bills -- doesn't fall off we want them to keep buying. there ar several problems, however. china doesn't have as much money as they did because their sales ar were and they're using some of their surplus money to stimulate eir own economy don't -- they're not going to have as much money to buy treasuryills as they did, frankly.

Jeff Sessions

2:11:20 to 2:11:43( Edit History Discussion )

Jeff Sessions: but at any rate, demand from china, the largest holder of u.s. government debt, is so last week's the way we put out the treasury bills on an interest rate and and it -- the government has to raise the rate high enough to get people to give them the money so we can spend it in

Jeff Sessions

2:11:44 to 2:12:04( Edit History Discussion )

Jeff Sessions: congress. last week's auctions of fixed-rate treasury notes saw lukewarm dem other investors. they're getting worried. chinese official had indicated they want inflation-protected secu u.s. economy starts to recover.

Jeff Sessions

2:12:05 to 2:12:26( Edit History Discussion )

Jeff Sessions: inflation-protected security. that's the "tips." right now they're not much interest, they're pretty low interest. but if you've got a tip, inflation protected security, and the interest rate goes up, then you get paid more. you get your interest -- the return on your treasury bill goes up.

Jeff Sessions

2:12:27 to 2:12:47( Edit History Discussion )

Jeff Sessions: it's not fixed. inflation is the number-one worry, said mark chand lerks global head of currency strategy forks brown, harriman and company. quote -- "this is the government saying we will take that inflation risk away from you." that's what a tip does. it says, don't worry about inflation.

Jeff Sessions

2:12:48 to 2:13:09( Edit History Discussion )

Jeff Sessions: we'll -- if the inflation goes up, we'll pay you greater interest on the treasury bills you buy. and the spread, the difference between the ten-year tips, infl and the regular ten-year treasury note near zero at the beginning of

Jeff Sessions

2:13:10 to 2:13:30( Edit History Discussion )

Jeff Sessions: this year to about 2% today. that means that one can get a 2% better rate by buying treasuries, ten-year treasury notes but people still want tips. people with money want tips. why? because they are afraid in the

Jeff Sessions

2:13:31 to 2:13:51( Edit History Discussion )

Jeff Sessions: next ten years we're going t have a surge of inflation and a 3.7% ten-year treasury bill, well, they'd rather have a 2.7% tips than get two more percent on the u.s. ten-year -- the -- than the treasury bill. officials from the united states

Jeff Sessions

2:13:52 to 2:14:12( Edit History Discussion )

Jeff Sessions: and china discussed tips issuance in high-level talks last week. u.s. officials assured their chinese counterparts that remain committed to tips sales, according to a person with knowledge of the discussions. and china has accumulated more than $2 trillion in

Jeff Sessions

2:14:13 to 2:14:36( Edit History Discussion )

Jeff Sessions: exchange reserves and has invested about $800 billion in u.s. treasuries. meanwhile, the regular ten-year treasuries increased from this year, a 50% increase. so the interest rates on the

Jeff Sessions

2:14:37 to 2:14:57( Edit History Discussion )

Jeff Sessions: ten-year treasury has increased 50% since january. why? because people are not willing to give the government lower 2.4% rate, because even though we are in a recession and interest rates are very low, they know with this kind of debt

Jeff Sessions

2:14:58 to 2:15:18( Edit History Discussion )

Jeff Sessions: debt, this kind of that the united facing, we're going to have a temptation to inflate the currency. and we are going to have that one way to beat your debt, of

Jeff Sessions

2:15:19 to 2:15:33( Edit History Discussion )

Jeff Sessions: course, is to pay it back in dollars not worth as much dollars as the perso you. if they loaned you $1 today and $1 drops 20% you can pay them

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