Skip to comments.Reid: Default Would Be A Plague That Haunts Our Nation For Years To Come
Posted on 07/18/2011 3:16:35 PM PDT by mdittmar
Washington, D.C. Nevada Senator Harry Reid made the following remarks today on the Senate floor regarding Senate Democrats meeting last week with Treasury Secretary Tim Geithner. Below are his remarks as prepared for delivery:
Senate Democrats sat down with Treasury Secretary Tim Geithner, and he painted a picture of what our world will look like if Republicans in Congress force this nation for the first time in its history to default on its financial obligations.
The picture was grim. This is how he described the state of our government if Congress allows this unprecedented default: lights out.
He said default would result in a complete loss of capacity to function as a government.
Even those who believe government should be small enough to drown in a bathtub have to admit that a total shutdown of even the most basic and essential functions of government is scary.
It wouldnt be good for the American people. And it certainly wouldnt be good for our economy.
The Senate has no more important task than making sure the United States continues to pay our bills for pre-existing obligations like Social Security.
To ensure that we meet this responsibility, the Senate will stay in session every day including Saturdays and Sundays until Congress passes legislation that prevents the United States from defaulting on our obligations.
Geithner described how the 80 million checks cut by the Treasury every day could simply stop coming. The federal government would, in effect, go dark.
Paychecks for troops in Afghanistan and Iraq and bases around the world could stop. FAA towers could shut down. So could the FBI and the CIA. Border crossings could close. Safety inspections of the food Americans eat and the cargo that enters our ports could halt. Literally every function of government could cease.
There would be no discussion of which operations and personnel were essential. All the payments would likely stop.
Some have said we could prioritize which bills to pay. Even if that wouldnt irreparably damage the nations credit and our reputation in the global community which it would it is also a complete fiction.
Our government wont even be able to cover the bills due on August 3. It will simply run out of money. And because well be in default and our credit rating trashed, we wont be able to borrow the money to keep running even if we wanted to.
Thats the picture Secretary Geithner painted. Like I said, its grim.
Many of my Republican colleagues understand this fact. They know what is at stake.
But the irresponsible Republicans who say default would not be an unmitigated disaster for this country either dont know what theyre talking about, or are twisting the truth for political gain.
Americans have gotten this message. Seventy-one percent of them disapprove of the way Republicans have used this crisis to force an ideological agenda. Even a majority of Republicans disapprove of their unreasonable refusal to compromise, which puts our entire nation at risk
Those who say this crisis would be a blip on the radar are wrong. Default would be a plague that would haunt our nation for years to come. Our credit rating would take years to rebuild. The country would never be the same.
Some will say this is an exaggeration, but it is not. This is what Treasury Secretary Geithner told us. And its what business leaders, economists, rating agencies and bankers have all told us as well.
If this country defaults on its obligations, Geithner said, it will be much worse than the Great Depression.
And it would make the massive financial crisis of 2008 look mild.
It will make what we just went through look like a quaint little crisis, Geithner said.
That quaint little crisis led to the loss of almost 5 million American jobs. It caused our banking system to nearly collapse. More than $34 trillion in wealth was destroyed in less than two years. The ripples were felt throughout this nation and around the world.
The average American family lost $100,000 on its home and stock portfolio alone. And 400,000 families were plunged into poverty.
That crisis was minor, Geithner said, compared to the potential fallout from a U.S. default.
The leading business and economic voices of our time have said it again and again: the risks of default are unthinkable. It would be a catastrophe.
Secretary Geithner also said were running out of time to avoid this iceberg. The rating agencies have already placed our AAA credit rating under review, and could downgrade us at any moment.
This is what Treasury Secretary Tim Geithner said: The eyes of the country are on us. The eyes of the world are on us, and we need to make sure we stand together and send a definitive signal that were going to take the steps necessary to avoid default.
I ask, what will it take to get my Republican colleagues to wake up to the fact that they are playing a game of political chicken with the entire global economy? They must wake up soon.
Well,harry,it's a start;)
His party has bean a 200 year plague upon this country!
Dumbo has the same effect...it will take years to erase what he has done
Democrats Are A Plague That Haunts Our Nation Now And For Years To Come.
There fixed it.
Reid is a plague that has haunted our Nation for years.
O.K., Harry. Please explain your role in spending us into oblivion and causing the debt to be the issue it is. You weren’t elected yesterday, you *urd.
Ya know, if democrat's were really sincere about the country's obligations and the dire straits brought upon us by defaulting, the bass turds never would have spent us into oblivion for political promotion in the first place.
Stuff it Dingy, your song and dance is old step!
“Literally every function of government could cease.”>>>>>>>>>>>>>>>>>>>>>.
The Dems are getting desperately desperate.
What would happen is that there would be no money for the liiberal fascist programs Obama , Reid and Pelosi rammed through Congress in the dark of night without public commentary, or GOP input.
That does not mean that virtually every function of government would cease. I am sure we could muster enough resources to impeach Reid and Obama in the new Continental Congress we could have.
Besides, this false crisis would only last until November of 2012, ,then we be rid of these manipulating liberal fascists.
The Dems’ message is “We have borrowed and spent you into this hole, now you must keep letting us borrow and spend ever more or we will bury you in it.” Why anybody with half a brain would want more of this is truly beyond me.
But who says 50% of American voters have even half a brain?
We are cooked.
...says the cadaver from nevada.
Perhaps if those "oh so concerned" lawmakers who support the DNC are so worried about our country's future then perhaps those lazy, worthless, self-centered THUG'S could come up with a G_d d@mn budget plan of their own for f***ing starters and earn their living for a change!!!
Should have thought of that when you were spending us into oblivian Dirtbag.
Pray for America
Translation: "We're (The Dem's) going to do everything in our power to punish the citizen until we get our way. Now PAY UP America!"
Now they’re doing fine.
stupid Brit Hume just said that the government shut down in the confrontation between Bill Clinton and Newt Gingich and “the public hated it”
As far as I recal I barely even remember it hapening- but I do remember thinking to myself Reagan’s famous words: “Let’s shut it down and see if anyone notices”
I dont remember the public ‘hating’ it at all- The media probably went berserck, but I wuld be happy if they shut it down and kept it shut down.
Why are they always repeating how much people hated the last shut down- IT IS NOT TRUE
Call Brit Hume and complain
It's about time we had one of these "plagues" that takes away the credit card and power the Congress Critters because they've already plagued us with decades of taking away our rights, our jobs, and the value of our own hard work as represented by our currency. The truth is that Barry already defaulted on all existing debt by spending like a drunken sailor. Everyone holding US debt knows that means they'll never be repaid or they'll be repaid with worthless paper. Default at this point would just be admitting that Mr.Nobel Prize Soetoro shafted the whole economic order in the world and still isn't finished.
What do you mean, "default would ...", Harry? We already defaulted and everyone but the fascist democrat thugs who still believe their own lies knows it.
Prayers would help. I fear we are in for very dark and trying times ahead. Hold close to your faith and pray we will be delivered from evil.
mr reid, you wanna know what plague will haunt this Nation for years to come? He’s sitting in the WH right now and marxist charlatan is etched deep into his forehead!
Reid-Poloozi-Zer0 default. Big deal.
Didn’t the all Democrats including (present) Obama vote against raising the debt ceiling in 2006? Now it’s imperative????