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ORDER FOR ADJOURNMENT (Senate - September 22, 1995)

Mr. BYRD. Mr. President, I thank my friend, the distinguished Senator from Rhode Island [Mr. Chafee] for his courtesy.

Mr. President, I want to be very observant of the rules of comity that exist between the Senate and the House. And, so, I seek never to call the name of a Member of the other body. I think the rules of comity are very important and I hope never to violate them.

However, Mr. President, I cannot allow the recent comments made by a Member of the other body, regarding a possible government-wide default, to go unanswered. Both the Washington Post and the New York Times today contain articles that suggest that a leading Member of the other body is willing to put the United States into default in order to coerce the President of the United States into swallowing a set of budget proposals that large segments of the public and the Congress consider to be extreme.

A Member of the other body has reportedly stated, `I don't care what the price is,' and is also quoted as saying that he does `not care if we have no executive offices and no bonds for 60 days--not this time.' He has further stated that he would use his office to prevent a vote to increase the debt limit until the President agrees to his proposals for balancing the budget.

That Member may not care, Mr. President, but I do. I care very deeply about the welfare of the United States and the people of the United States. This kind of arrogant brinkmanship can do irreparable damage to the United States, to its creditworthiness, and to its international standing. It could have long-lasting effects on the world stock and bond markets, with unseen ramifications for U.S. interests around the world. That is very careless--careless talk, Mr. President.

With each passing day, we climb ever closer to the $4.9 trillion ceiling on Federal debt imposed by Congress in 1993. We may hit that ceiling as early as the end of October, or as late as mid-November, but hit it we will, as sure as I am standing here today, unless action is taken soon to increase that limit. In the first 5 days of November, the Government must pay $50 billion in Social Security benefits, Medicare, and active-duty military pay. On November 15, some $25 billion in interest payments will be due on interest payments on the debt. Without an increase of the debt ceiling, the Government may be able to limp along until these payments are due, but no amount of accounting legerdemain will cover these large payments. Without an increase in the Government's ability to borrow, Government checks would not be honored. For the first time in history--we have been talking about history here today--the United States would default. It is almost inconceivable for me to imagine the Government of the United States bouncing a check, but that stark possibility looks us right in the face.

A Government default is not something to be taken lightly, as the author of the reported remarks seems to feel. This is a very, very serious issue. It does not just mean that `executive offices' might be shut for 60 days. It does not just mean that there will be `no bonds' for 60 days. It is far more devastating than that glib picture would imply. The Congressional Research Service paints a far darker scenario. Let me quote the CRS report:

It is difficult to describe the extent of the problems the Government would face if the debt limit were not increased when needed. Under current Federal borrowing needs (for 1996), the effect would be similar to a 10 percent reduction in spending with no preplanning and uncertain authority to rank activities by importance. From past experience, most non-essential operations of the Government could be shut down. Most Federal employees might be sent home. National parks and monuments could close. Regulatory activities could cease. Discretionary Federal activities would probably be cut back as much as possible so that mandatory activities could be paid for. Depending on how long the situation lasted, employees, and eventually beneficiaries, could stop receiving checks from the Government. Government bondholders might not receive their interest payments. Federal construction projects could stop. Payments to State and local governments could stop. Federal contractors could find their payments delayed or missed. Through its reach into all parts of society, the disruption of Federal activities could spread over the entire country.

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