Transcripts For CSPAN2 U.S. 20240706

Crisis the fact that within 30 days there is a likelihood that americao will do something that america has never done and that is fail to pay its bills in full and on time. Theres a lot of discussion about the debt its 31 trillion. Theres very little discussion about what that debt is and what the implications are and the economy. If in fact we do the unthinkable and the default onef the debt. The 31 trilliondollar debt, 8 trillion ison held by governmental entities and that includes the federal reserve, to Social Security trust funds, the medicare insurance, u. S. Military retirement plans. Anything we do to jeopardize the value of those Treasury Bills where 100 cents is what they are worth on the dollar and compromises the security americans depend on from those trust funds. The 24 trillion held by the public includes 3 trillion held by individuals by households, by for profit and notforprofit entities, by endowments. If we jeopardize that riskfree asset it means they lose value. Every one of our constituents knows what those are and believe that they are going to get one dollar out for every dollar they put in. We jeopardize that Treasury Bill i defaulting on our debt. They may get 95. That is real havoc and payment for so many americans. 2 trillion is held by banks. Thats the money they have to guarantee the deposits if we think that we have an issue with a run on the banks of First Republic wait until this happens and there is a run on these banksse who because of an action that this Congress Took has a cataclysmic reduction in the value of the deposits. 1. 5 trillion is held by various state and local governments. If it is the town you live in, the town i live and where that is set aside to help their citizens. They lose value on the securities. They can do less for water and sewer and schools in their own communities. 1. 1 trillion by private pension funds. Thats folks who have saved and put into the pension fund for the retirement. That asset, the treasury bond declined because of the default. The retirement is in jeopardy. A 7 trillion is held by foreign and Central Banks and investors. That helps us because they help us keep our Interest Rates down and they do that because the dollar in is a dollar plus interest out. Thats jeopardized by this reckless plan to default on our debt as a leveraged device yet thinks totally outside of what that debt is. Its the bedrock of our Financial System because their view as ase safe asset, and theyve been safe ever since the founding of our country. Equally important, Treasury Bills are considered riskfree. You put that the dollar in and by the treasury, youre going to get that dollar back, absolutely, plus the interest. Third, treasuries are the device and willingness to pay unquestioned that has made the dollar the reserve currency of the world. I go back to what i said earlier, 7 trillion, they put their money here because they have totally and complete confidence thate its safe. We default on our debt, we lose that status, they lose that assurance. We in this country start paying higher Interest Rates. As the economy goes through a cataclysm of the first time default in the history of the country, for w this typical retirement including folks in vermont would see a 20,000 reduction in what they have available for retirement. The average new 30 year mortgage would be increased in cost over the life of its mortgage, 130,000. Think of what you could do without to help your child within education. It would become harderuc to borrow. The National Debt, the National Debt would increase by 850 billion so the folks that are advocating default as a way of, quote, cutting down on spending are doing the single most destructive thing that they could do that would result in increasing spending. So, mr. President , this notion of defaulting on our debt or using that as a tactic to get something completely unrelated to what we know is the obligation to pay our bills, confident country always pays for the bills is a disaster for the economy. It has longterm devastating implications for Everyday Americans as well as our reputation and strength as a country. You know, this is embedded in our dna that we pay our bills in full and on time and it started just after we became an independent country. We were broke. Alexander hamilton as you know was our first treasury secretary and he had to make a decision. We had borrowed a lot of money to prosecute our revolution. They represented that the borrowed money worth pennies on the dollar and the question for Alexander Hamilton was pay pennies on the dollar or pay 100 cents on the dollar. Despite the fact that this was an incredible hardship, Alexander Hamilton and our government that made the decision that those bonds were going to be repaid in full, the benefit of that to us is that we established as a country that we were safe, we were sound, we were reliable and no matter what the circumstances were, if we owed the money, we paid the money thatd, was owed, we pay it in full and we paid it on time. The benefits to the country and to us as individuals over the generations where weve kept that commitment have been incalculable. Leso, the notion that we should put that in jeopardy and even threatened not to pay our bills is something that has never, ever happened before in this country and should never happen. An honest impression of negotiation, let me ask the question why would president biden, why would any president , republican or democrat to negotiate when the effect of that is to threaten the pension deposits of the people we represent . Why would the president , any president negotiate when o the outcome of the negotiation threatens your money market . Why would this president or any president negotiate when the outcome of that negotiation would weaken the pension funds, where that negotiation if it comes out the way the proponents of default as a tactic is going to make it really tough on everyday people, our small businesses, local governments, savings for our kids education we pay our bills in full, on time. Thats what the United States of america hasay always done. That is what the United States of america must always do and i will yield back. 2024 democrac president ial candidate joining washington urnal to take your calls and talk about the platform. Her policy objectives and what she sees as a path to victory. Ve the world is changed. Today a fast reliable Internet Connection is something no one can live without so we are there for our customers. Speed, reliability, value and choice. Now more than ever it all starts with great internet. On the Budget Proposal before the Senate Energy and Natural Resources committee. She was asked about pushing for more Domestic Oil Production and other u. S. Natural resources. This is just under two hours. This morning we will be addressing the fiscalea