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Judd Gregg: No more debt without spending cuts

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By JUDD GREGG

ARE WE THERE YET? Yes (sigh), we're there. The U.S. government has borrowed itself into an abyss of debt totaling $12 trillion, and the law says that's all we get. The secretary of the Treasury has written Congress asking us to act "as soon as possible" to increase the nation's credit limit.

After hovering around 40 percent of gross domestic product for the past 30 years, our debt, owed collectively by all Americans, has taken a quantum leap this year.

Under the Obama budget plan, U.S. debt is headed into uncharted territory. Why? Because President Obama's budget promises deficits averaging $1 trillion per year for the next decade. As a result, debt held by the public will double by 2013 and triple by 2019, when it will represent more than 80 percent of our economy.

In the future, we can expect many subsequent letters from the secretary of the Treasury asking Congress to raise the nation's credit limit.

These are clearly unsustainable levels. We cannot allow massive interest payments on the debt to pre-empt important funding priorities of national security, health care and education, but we will have no choice in the matter unless the President and the Congress take action now to prevent the spending that will result in such high levels of debt.

We are hearing similar warnings from around the world. One of the federal government's biggest debt customers is China. But a former adviser to the Chinese Central Bank said publicly that "the U.S. government should not be complacent" and noted that China has safer alternatives than buying U.S. Treasuries. We should be exporting goods; instead we are exporting debt.

Former Federal Reserve Chairman Alan Greenspan recently called the current level of U.S. debt "very dangerous" and said it must be confronted "immediately" before increased issuances of U.S. Treasuries undermine the dollar.

How many warnings are necessary? American families are tightening their belts -- cutting out non-necessities, paying back the debt they owe, and saving, not borrowing, more. It's time for their leaders to do the same. It's time to follow the model of the American people and start taking the hard but necessary steps required to get back on the right fiscal track.

Therefore, when Congress votes on whether to increase the debt limit, that legislative action absolutely must include a clear plan for getting the debt under control.

In fact, if this Congress agrees to raise the debt limit without fundamental spending and debt reforms attached, it is implicitly agreeing to the Obama administration's plan for more spending, bigger government and unsustainable debt. By allowing new borrowing with no strings attached, Congress is positioning itself as the next systemic risk, passing on a burden to future generations. Our children will spend their lives struggling to pay off our debt with fewer jobs in an anemic economy because we were unwilling to address our overspending.

The first step is to stop pretending the federal government can do everything the political class wants. The next generations of Americans cannot foot the bill for a President and a Congress lurching to the left. The second step is to address the more than $70 trillion in unfunded entitlement obligations as the baby-boom generation continues to retire and collect federal medical and retirement benefits.

The third step is to take action today to slow the growth in the debt by finding savings and using them not for new spending, but for deficit reduction. Freeze discretionary spending, end stimulus spending not expected to occur until after 2010, reform entitlements through fast-track legislation, and be sure that all the repayments and interest under the Troubled Asset Relief Program (TARP) go to reduce the debt -- these are the conditions for raising the debt ceiling.

Sen. Judd Gregg is the ranking Republican member of the Senate Budget Committee. This column was first published in The Washington Times.

YOUR COMMENTS


Gloria is right Spike, the Constitution isn't worth the paper it is written on. The Constitution specifically eliminates dual citizens from being President and it is well established the President's father was Kenyan and a Brittish subject making the President a dual citizen when he was born. If you don't follow the rules then the rules are meaningless. The people spoke and the Constitution is meaningless. Thanks Dems!
- Don Diamant, Milton, NH

It doesn't matter who delivers the message, the debt created to pander to special political interests is going to destroy our currency, & bankrupt the country. If you were only sacrificing your own future, go ahead, but this rudderless ship of state will sink us all.
- Mae, Plaistow

Frances in Tennessee asserts "Real health care reform, with a public option to insure tough competition, will go a long way to cutting our deficit." Only thru massive tax increases to pay for the public option and other huge spending programs included in the Democrat's proposals. BTW the massive tax increase will come from both the Feds and the States becuase the proposal downshifts huge amounts of MediCare/MedicAid costs on the States. Frances knows there are better ways to balance the budget but doens't want to admit it was mistake to vote Democrat.
- Jim, Manchester

Francis from Tennessee asserts that "our economy was in pretty good shape when Clinton left office." Wrong! Our economy was badly and obviously overheated when Clinton left office. Even before it popped economists were calling the Dot.com boom/bust a bubble. Reporting on unsustainable .com companies with no income was everywhere.

Another part of what fueled that boom time was housing construction caused Congress's underwriting mortgage loans thru Fannie & Freddie which fueled a second bust more recently. Clinton, Bush and their respective Congress's all had opportunities to prevent these busts by reforming home finance and applying the brakes to the economy, but instead, they got greedy, fell into partisan bickering, and failed to adress the clear warning signs.

Further, part of what made Clinton's tenure seem more economically successful was all the sophisticated technology he allowed to be sold to the Chinese (short term gain, long term loss). They gained 20 years on us technologically during the 8 years of his tenure. Now they can challenge us militarily and are kicking our butt economically by selling us, and our former customers, cheaper products based on our own technology.
- Jim, Manchester

Gee Spike thanks for the church lady bolt upright opinion of what government can and can't do under the Constitution: "...would note neither health care nor education are in Washington's enumerated powers." You should work teach pol sci at some community college where theory matters. Because, we don't need more selfish neocon theorists gumming up efforts to roll back decades of GOP malfeasance.

Now, back to reality of a properly run nation; What are we going to do about health and education?
- Gloria, Rochester

Time to come home Judd, baby. Actually, it's been time for some time...
- Jack, Candia

Jim, Raymond
"I only say that because you voted to protect defense contractors right to gang rape their employees and lock them in shipping containers."

REALLY?? DO TELL!

Please cite your sources for this INCREDIBLE assertion--supply us with a link to a reputable confirmation--or be man enough to apologize for this slander. We're waiting.
- Paul, Sunapee

Article 1, Section 8 of the United States Constitution gives Congress the power to

"provide for the common Defence and general Welfare of the United States"

Because the Constitution does not have a definition for "general Welfare", Congress gets to decide what general Welfare means. Congress may be involved with health care, education, and many other things because of Article 1, Section 8 of the United States Constitution.

"To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."

Saying Congress should not be involved in education and health care is a matter of opinion. Saying Congress may not be involved in education and health care is to be NOT correct constitutionally speaking. The Consititution does not ban Congress from being involved in education and health care.

I think Congress should be involved in education and health care. I am NOT happy with the way Congress is involved with education and health care. I would like Congress to care more about Amendment 10 of the United States Constitution and allow state governments to have more say dealing with education and health care.

Our country should drill for more oil on our lands and ocean waters.

Our country should have a military tax on gasoline to help pay for some of the military costs related to gasoline. Our country should have had a military tax placed on gasoline since Reagan was President.

Our national debt was less than 1 trillion dollars on January 20, 1981. Our national debt has soared mainly under Republican Presidents. Congress is mainly responsible for our national debt increasing significantly.

Members of Congress should fulfill their constitutional obligations discussed in Article 1, Section 8 of the United States Constitution. Candidates for United States Senate and United States House of Representatives should be asked if they are going to fulfill their constitutional obligations.

Congress and not the Federal Reserve is supposed to be in charge of our currency.

Congress and not the President is supposed to negotiate trade agreements with "foreign Nations."

Congress and not the President is supposed to decide how terrorists and prisoners of war are deal with

Article 1, Section 8 of the Constitution says Congress has the power

"To define and punish Piracies and Felonies committed on the high Seas, and Offences against the Law of Nations

"To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water"

Before Amendment Seventeen of the United States Constitution was passed, United States Senators were chosen by State Legislatures which gave them a say on the national debt, military spending, and many other things.

I would like an Amendment to the United States Constitution passed that allows each State to have at least 3 United States Senators and each State Legislature to choose at least 1 United States Senator.

People should NOT expect government spending to be brought under control if State Legislatures are not able to choose some United States Senators again.

Republican Senators, Democrat Senators, Republican Representatives, and Democrat Representatives are responsible for the national debt soaring. Some Republican Senators are more responsible for the national debt soaring while Bush was President than other members of Congress because they were often lapdogs while Bush was President.

When I ran for United States Senate in the Republican primary in 2002, I discussed some of the reasons I disliked Bush on The Green Papers website in Vox Populi dealing with how to increase membership in the Republican party.

I vote for Republicans and Democrats. I do not care which political party a person belongs to. I vote for the candidate who will be best for our Republic or the candidate who will do the least amount of damage.

I hope people will read George Washington's Farewell Address on the net. He was right about political parties and many other things.
- Ken Stremsky, Manchester, NH

Bob- I seem to remember that Bush inherited a surplus and our economy was in pretty good shape when Clinton left office.

As for spending cuts, I believe that Obama has curbed military spending some. He cut funding for the very expensive superdooper helicopter and some other advanced military plane development programs that were huge money pits. I don't remember the exact details, but I know McCain was onboard with these recent program cuts.

Real health care reform, with a public option to insure tough competition, will go a long way to cutting our deficit. The Medicare program costs have been growing in large part because overall costs for health care are rapidly rising with no end in sight. Congress keeps patching it every few years, but except for Clinton, no one until now has attempted to fix the problem. This entitlement program (Medicare) can't be fixed alone inside of a broken health care system. The last administration pushed the Medicare private insurance HMO program which costs more than traditional Medicare and does not yield any better results. It is a government handout to the insurance industry. That is why this program has been specifically targeted by Obama for being a waste of money.

Because this administration took over during this huge recession and in the middle of two wars they have pretty much had their hands tied behind their back.
The government can't cut spending when everyone else has. Where would we be without the stimulus that helped to keep states afloat and saved the jobs of teachers, police officers etc.

As for what my party has done to get the train back on track, they will stop giving insurance companies a free pass to take our citizens money when it is most profitable for them and then dump them onto government programs (the taxpayer) when they become sick and too expensive.

This party is setting up a consumer protection board to monitor bank practices because those who can least afford it, pay the most in unfair bank fees. And because when people lose their house to foreclosure it costs the taxpayer. Wasn't it the large number of defaults/foreclosures that started this economic downturn?
- Frances, Nashville, TN

I think I am getting the handle on Gregg speak. Denial of responsibility followed by a dose of fear mongering in order to conceal that a) he has no problems as he is rich and has now a life pension from his governmental service and general richness, b) he neither understands nor credits your condition because he is just not like you. Used to making the rules, and exempting himself (he already has health care) it is stunning to him that you would be worried about your job or health care or educating your children. One of God's elect needn't bother himself with those details. That anyone would find it necessary to deficit finance to repair the theft Republicanics have carried out wouldn't enter his mind. Just cause problems and then retire and blame it on those with ideas, energy and a strategy to make life better for those who actually work for a living.
- Robert, Deerfield

Frances & Jim, the Senator is saying--and I'm typing this real slow for your benefit--that economics dictates we have run out of political options.

Spike, you are on the right track. The Founders created a system of limited government, with Federal powers defined and limited by the Constitution.

Outside those limits, as we know now--and THEY surely knew then--is a slippery, slippery slope.

What liberals hope will be a genie in a bottle, conservatives know to be Pandora's Box. God help us.
- Paul, Sunapee

Gee Judd,

Nice words but you forgot to mention that fifty-one cents of every tax dollar goes directly to defense contractors. Could it be that the defense contractors own you? I only say that because you voted to protect defense contractors right to gang rape their employees and lock them in shipping containers. If we want to get the budget under control we need to look at where the money is going and we can’t ignore the ones who give our Senators huge gobs of cash. It’s funny we didn’t hear a peep from you when 22 trillion dollars disappeared from our economy which doesn’t include the cost of the two wars we’re still fighting. The solution is very simple, remove the Bush tax cuts for the wealthy they have not created any jobs and cut the waste out of defense by getting rid of the no bid contracts and crony deals. That should increase revenue and bring about twenty-five cents on the dollar back into the general treasury. There ya go Judd problem solved now get back to work.
- Jim, Raymond NH

Sen. Gregg worries that debt will interfere with "important funding priorities...health care and education." A Republican would note neither health care nor education are in Washington's enumerated powers. They are outside his job description.

Gregg's ilk still believes that the federal government should intervene in every aspect of America's economy (as with his gas-guzzler tax) and that is how we got to these debt levels. We need to find out whether his successor is more faithful to our Constitution of limited government, or will keep searching for solutions to non-problems as Obama defines them.
- Spike, Brentwood NH

So Francis of Nashville...tell me, what has YOUR party done to get the train back on track since they have had control? Both parties are to blame...
- Bob, New Hampton

Those are nice thoughts Senator, but honestly, what are the chances of these things taking place with the current attitudes that have run this country in recent years? Yeah...that's what I thought.

Cynical? Yeah...I suppose I am, but how else am I to think seeing the unbridled government spending we've seen happening for the past several years? That makes it tough for me to be optimistic.
- Bob, New Hampton

Too bad Mr Gregg didn't think of this during the republican spending spree.

I haven't checked, but did Senator Gregg vote for the two wars that were not paid for? How about the tax cuts for the wealthy they passed without making any cuts in spending to offset them? Rebates? Did they pay for those? I don't think so.

Surely the republican controlled congress would not have approved the largest ever expansion of an entitlement, Medicare Part D, without paying for it. But they did. They handed the pharmaceutical companies wads of taxpayer dollars and didn't even negotiate drug prices. And did they not PAY for it.

Mr Gregg does not mention the fancy accounting the last administration did when they left the cost of the wars off of their deficit numbers. Did he sound the alarm then? Obama has added in the previously hidden numbers, but they are not his spending deficits.

It is Mr. Gregg's party that drove the train off the tracks. I seriously question his motives when it has taken him this long to sound the alarm.
- Frances, Nashville, TN

When a household or a small business is in financial trouble what do we do? We stop spending and make more money somehow. As a country we need to stop letting our money out of the country. No more outsourcing to foreign countries and incresae our manufacturing and exports to other countries. Have a moratorium on immigration until we get our house back together. Use our own oil and gas resources until OPEC and others cut the price of oil. Cut foreign aid and lastly stop government's wasteful spending. It's almost too late and we can't file bankruptcy.
- Paul, Londonderry

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