Senate Proceeding on Oct 22nd, 2009 :: 5:31:25 to 5:50:20
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5:31:20 to 5:31:42( Edit History Discussion )

Judd Gregg: quorum call: mr. gregg: i ask that the quorum call call be set aside. the presiding officer: withou objection, so ordered. greg grg i want to rise to speak about one of the most significant issues we have front of us as nation which is our rising deficits and debt. mr. gregg: at the end of the last fiscal year which just concluded here at the end of september and beginning of october, we determined that we

5:31:25 to 5:50:20( Edit History Discussion )
Speech By: Judd Gregg

5:31:43 to 5:32:03( Edit History Discussion )

Judd Gregg: had a $1 moi 4 trillion deficit, $1.4 trillion. and it is projected that we will have $1 trillion deficits for the next ten years under the president's budgets as president obama has brought them forward. yesterday we had a vote not to do closure on a bill which would have -- which the administration supported and which was brought

5:32:04 to 5:32:25( Edit History Discussion )

Judd Gregg: forward here which would have put another $300 billion on the federal debt to pay for what's known as the doctors' fix. the doctors' fix is something that should occur, and we have done it around here before -- in fact, we've done it every year for about eight years, and that is reimbursing doctors at a rate rather than having those rates cut -- but we've always paid for it. but yesterday there was an attempt by the leadership on the

5:32:26 to 5:32:48( Edit History Discussion )

Judd Gregg: other side of the aisle to pass a bill which would have not paid for the doctors' fix and which have put $300 billion of n debt on to our children's back so that every time somebody walked into a doctor's office and was reimbursed under medicare, that bill, whether it was for a flu shot or whether it

5:32:49 to 5:33:10( Edit History Discussion )

Judd Gregg: was for a serious dis would have been taken and passed directly to our children rather than paid for under today's proceedings -- paid for today as it should have been. so it was a totally irresponsible act to try increase the debt by $300 billion in order to take care of th

5:33:11 to 5:33:32( Edit History Discussion )

Judd Gregg: but that was what was attempted. fortunately, that failed, at least as of yesterday it failed, and it was a bipartisan appreciation in the senate. all the republicans voted against doing that and 12 democrats and one independent voted against doing it. and that was good. that was a good sign to the american people that maybe we're finally taking the deficit and the debt seriously. and the reason i wanted to speak

5:33:33 to 5:33:54( Edit History Discussion )

Judd Gregg: today on this is because we're getting some significant warning signs, some flashing yellow lights that are meuftion from yellow maybe to red from the world community that we better do something about our debt and deficit or the world community is going to react to it. oh, about four months ago now, the chinese, who are the primary

5:33:55 to 5:34:16( Edit History Discussion )

Judd Gregg: owners of words, when we spend $1.2 trillion more than we have in a year like we did last year, or we spend a trillion dollars more than we have every year for the next proposed by th have to get that money from somewhere, we have to borrow it supersomebody, somebody has to be willing to lend us that money, that trillion dollars,

5:34:17 to 5:34:38( Edit History Discussion )

Judd Gregg: that well, the countries which have that type of money and are willing to lend it to us are countries like china and russia and saudirabia. they have surpluses in their economies. they're want running deficits in their gofts they have surpluses.

5:34:39 to 5:34:59( Edit History Discussion )

Judd Gregg: and they have historically, at lost over the last few years, been willing to buy our treasuries, our notes to finance the government operation here in the united states. well, about four months ago, the leadership of the chinese government said, whoa, we're getting a little concerned here. we're still going to buy amican treasuries, we're still going to help you finance your deficit but you've got to do

5:35:00 to 5:35:20( Edit History Discussion )

Judd Gregg: something about this because we're concerned about the value of what we're buying. we're concerned that those i.o.u.'s that we're buying from you may not be worth what -- what we're paying for them on face value if you continue to run your deficit. that you have. that was a fairly large warning sign from a country which obviously has not historically

5:35:21 to 5:35:44( Edit History Discussion )

Judd Gregg: been close to us but which is one of our largest trading partners and which is, whether we like it or not, buying up all this debt when we run these massive deficits, or a lot of this debt. another warning sign came at us when -- when the dollar, which has historically been

5:35:45 to 5:36:06( Edit History Discussion )

Judd Gregg: reserve in other words, countries hold dollars in order to maintain their own structure of reserves for their countries -- when the dollar started to be discussed as maybe not the best reserve currency. and there have been a number of rumors and some represeations

5:36:07 to 5:36:31( Edit History Discussion )

Judd Gregg: by some finance ministers around the country that people might not want to use the dollar any longer as their reserve currency. they might want to use some other currency, maybe the euro, or some basket of currencies, maybe the euro or the yen, or maybe just use

5:36:33 to 5:36:54( Edit History Discussion )

Judd Gregg: maybe use i.m.f. drawing rights. a whole series of different ideas. what does that reflect? that refleacts people aren't too -- that reflects that people aren't too confident in our future ability to maintain and defend the value of the dollar. and why aren't they confident about that? well, they aren't confident about it because they're looking at the deficits we're running and they're looking at the debt

5:36:55 to 5:37:17( Edit History Discussion )

Judd Gregg: that we're piling up and they're saying, hold it, how are you going to pay all that off? if you $16 trillion worth debt on your nation, if you take your public debt from 38% of g.d.p. up to 80% of g.d.p. or more, how are you going to pay that off, united states?

5:37:18 to 5:37:39( Edit History Discussion )

Judd Gregg: and it's a legitimate question. because there are only a few ways you can pay that off, and one of them, unfortunately, is by using inflation. and that devalues the dollar and it devalues all that debt that people are bought. and that is why people are -- we're hearing more and more that people, first, are worried about using the dollar as their reserve currency because they

5:37:40 to 5:38:00( Edit History Discussion )

Judd Gregg: don't want to see its value drop, and, secondly, they're worried about buying our debt. so we're getting some serious caution lights from the international community about the fact that we're running these massive deficits and this massive debt. and just yesterday, i think one of the most serious caution lights came up, because there are groups in this world, small

5:38:01 to 5:38:24( Edit History Discussion )

Judd Gregg: groups of people, moody's and standard & poors, who basically look at the currencies and the debt of various nations -- and they do that also for companies -- and they rate the debt and the rest of the world financial activity looks at those ratings because they're

5:38:25 to 5:38:46( Edit History Discussion )

Judd Gregg: considered to be of very high high pevery caliber and very high starn. anstandard. and they allow people in other places to be able value of the debt that they might want to buy. so if you want to buy debt from xyz country, or standard's, who's taken a

5:38:47 to 5:39:08( Edit History Discussion )

Judd Gregg: hard look at that country's debt -- they've evaluated it -- and they'll tell you whether it's rated aaa, aa, a. and that determines how much it's going to cost a person to lend in -- in that country to -- a country to lend to you, that will determine the amount of interest rate on that debt.

5:39:09 to 5:39:33( Edit History Discussion )

Judd Gregg: because if it's not is the best rated debt, then people are going to be less likely to invest in it. or if they do invest in it, they're going to want a higher return because there's going to be a bigger risk because they know that that debt might not be paid back, but if it is paid back, it might be paid back in devalued dollars or devalued currency of that country. and so historically,american

5:39:34 to 5:39:54( Edit History Discussion )

Judd Gregg: debt, the treasury note, has been the gold standard for the world. in fact, it is tec gold standard because most people use it as the reserve fund. and when the world went off gold as a -- as a dollar became basically the way that people conserved their assets. they would invest in treasury notes and know that the

5:39:55 to 5:40:15( Edit History Discussion )

Judd Gregg: treasuries were always safe. it was always determined that treasury notes were always safe because the united states was always going to pay back its debt. and so the united states has always had a aaa rating and that is -- that's hugely important to us as a nation. it's hard to appreciate united states it as american going to work every day and trying to make ends meet, that the triple-a rating of the

5:40:16 to 5:40:37( Edit History Discussion )

Judd Gregg: united states is important to them but it is. it affects everything in this country that has to do with credit. if the united states were to lose its aaa rating, all credit would go up in cost and it would be much harder to buy a cost because the interest rates would it would be harder to buy a car.

5:40:38 to 5:40:58( Edit History Discussion )

Judd Gregg: it would be harder to send a child to college because interest rates would be high. everything is tied to the fact that treasuries have triple-a ratings, united states treasuries. and it's always been presumed that we would. in the post-world war ii period, it has always been presumed that the united states is the strongest economy in the world, the most vibrant economy in the world, would always have the

5:40:59 to 5:41:19( Edit History Discussion )

Judd Gregg: gold for the debt issues, it would always be a aaa related event. well, as a result of our profligate nature as a country and as a congress, as a result of having run up these massive deficits, we're getting a very large yellow flashing light from the rating agencies.

5:41:20 to 5:41:40( Edit History Discussion )

Judd Gregg: and they're saying this. this was on october 22 news report from reuters. "the united states, which posted a record deaf in the last fiscal year, may lose its aaa rating if it does not reduce the gap to a manageable level in the next

5:41:41 to 5:42:01( Edit History Discussion )

Judd Gregg: three to four years. that's according to moody's investment service to. quote from mooty's investment service as follows. "the triple aaa rating of the united states is not garn teerksd said steve s., moody's lead analyst for the united states. he said in an interview with reuters television, 'so if you

5:42:02 to 5:42:23( Edit History Discussion )

Judd Gregg: n't get the deficit down in the next three to four years to a sustainable level, then the rating will be in jeopardy.'" those are words that should make us pause here in the congress at

5:42:24 to 5:42:45( Edit History Discussion )

Judd Gregg: what the most sophisticated and deficit situation and debt is saying, the moody's rating service, is that if we as a congress do not do something within the next three four years to bring our debt under control

5:42:46 to 5:43:10( Edit History Discussion )

Judd Gregg: and our deficits down, we may jeopardize the aaa rating of the united states. i can think of nothing that would be more irresponsible for our congress to do american jeopardize and put at risk the

5:43:11 to 5:43:31( Edit History Discussion )

Judd Gregg: aaa rating of this country. second, while maybe only after disarming ourselves in the face of a potential terrorist threat of use of a weapon of mass destruction, i can think of nothing which would have a larger impact on our populous than to -- for the congress to put in place fiscal policies which would jeopardize our ability to sell bonds, american

5:43:32 to 5:43:53( Edit History Discussion )

Judd Gregg: debt around the world at a asonable expries for -- and put at -- price, and for -- and put at risk the status of the dollar as the reserve currency of the world and to put at risk the aaa rating -- as a result of putting at risk the aa our bonds. and yet that's exactly what we're doing. you know,

5:43:54 to 5:44:14( Edit History Discussion )

Judd Gregg: mr. hess, says we have two to within the next three to four years put in place realistic plan that will address the deficit and debt of the united states. are we doing that now? we're dng just the just yesterday this congress tried to new debt for ordinary expenses, for daily expenses of paying

5:44:15 to 5:44:35( Edit History Discussion )

Judd Gregg: doctors. today we w i.o.u. to our children and grandchildren five, ten years from now. total irresponsible. -- total ir total irresponsibility. st week it was the white house suggesting we do the same thing for social security of $13 billion. a few months ago we did the same

5:44:36 to 5:44:57( Edit History Discussion )

Judd Gregg: thing for cash for clunkers for $5 billion. a budget was passed by this congress which does it for the whole nation, it creates a trillion dollars of unfunde liability and deficits for the next ten years every year.. and now we have this health care bill coming at us which is going to increase the size of the government by $1 trillion to $2 trillion, represented that it's paid for,

5:44:58 to 5:45:20( Edit History Discussion )

Judd Gregg: but that's only because they phase in the expenses four years after they phase in the the income and, thus, they're able to match ten years of income against six years of expenses a so they claim it's paid for:when the bill is fully phased in, it's not going to be paid for. it's going to be a huge cost to the federal government and even if it were

5:45:21 to 5:45:42( Edit History Discussion )

Judd Gregg: paid for, it would massive resources in the area of -- we cut medicare b by $400 billion. and it's going to raise by $500 billion. and instead of using those resources to reduce the debt, it's going to use them to create

5:45:43 to 5:46:03( Edit History Discussion )

Judd Gregg: a brand-new major entitlement. brand-new major entitlement at a time when we already have on our books entitlements that we already can't afford today. unfunded liability yet we're going to add a new major entitlement on on top of medicare and medicade.

5:46:04 to 5:46:26( Edit History Discussion )

Judd Gregg: we're going to pay for part of it by paying for medicare. still instead of cutting medicare, we sho medicare solvent. so we're going to do a $1 trillion to $22 trillion increase in the size of government. i will absolutely guarantee you that will not be fully paid for and a large percentage of that will go to our debt.

5:46:27 to 5:46:48( Edit History Discussion )

Judd Gregg: so on top of having deficits already projected to be $3 trillion a year for the next 10 years, we're seeing a congress, which is being credibly spend approach to all sorts of areas, $3 billion to pay the new doctors in debt. who knows how much out of this

5:46:49 to 5:47:09( Edit History Discussion )

Judd Gregg: health care bill. i'm willing to bet the family farm it will be well o it 2 trillion in debt when it gets phased in. new programs in the area of bankrupt, unpaid for, added to the new programs for this favorite group, cash for clunkers or

5:47:10 to 5:47:31( Edit History Discussion )

Judd Gregg: whatever the issue is for the day. we're out of control on the spending sid it's not a revue it's not a revenue i it's a spending issue. spending has been about 20% of g.d.p. but under the budget which we've been given, independent of the health care bill, under the

5:47:32 to 5:47:52( Edit History Discussion )

Judd Gregg: budget that we were given, spending goes from 20% of g.d.p. up to 23% of g.d.p. when you throw in the health care bill you're heading toward 24%, 25% of g.d.p. revenues, if they maintain their historic levels and go back to

5:47:53 to 5:48:14( Edit History Discussion )

Judd Gregg: the 19% of g.d.p., you still get a 6% to 7% gap because spending's gone up so much. now, i appreciate the fact this administration comes with the philosophy, and they won the election, and they come with a philosophy that you create prosperity by growing the government. i mean, the president said that. people around him said that. members on the other side of the

5:48:15 to 5:48:35( Edit History Discussion )

Judd Gregg: aisle say it. you create prosperity about growing the government. but you don't if you let government grow so fast that it can't be pai for. government cannot be allowed to grow any faster than it can be paid for. and, in my opinion, prosperity

5:48:36 to 5:48:56( Edit History Discussion )

Judd Gregg: doesn't come from government to begin with. prosperity comes out from people who are entrepreneurs and wiing to create risks -- willing to take on risks and create jobs. if you let government grow allow low it to grow faster than you can pay for it, you don't

5:48:57 to 5:49:17( Edit History Discussion )

Judd Gregg: create prosperity, you create debt. and it is that debt, and people who are looking at debt giving massive caution lights and saying, slow down. get your house in order. the people who are buying our debt around the world are saying. it the people who use our dollars are saying it. and now moody's which is the

5:49:18 to 5:49:41( Edit History Discussion )

Judd Gregg: arbiter of what the value of debt is of it is is saying it in the most stark way. th triple rating on the united states is not guaranteed steve hess of moody's said. if they don't get the def down in the next three to four years to a sustainable level,

5:49:42 to 5:50:02( Edit History Discussion )

Judd Gregg: then the jeopardy. we need to heed those words. we need to get some discipline around here and we need to stop having proposals which dramatically increase the size of the government and continue to put us o pass debt on to our children which will cse them to have a much lower standard of living than we've had, which will cause

5:50:03 to 5:50:21( Edit History Discussion )

Judd Gregg: them unable to send their kids to college and to buy their first home and afford thatar because they'll simply be confronting a nation where the debt is absorbing -- absorbing so much of the productivity of the economy or where inflation has basically priced them out of