On the recordJune 30, 2011
I thank the Senator from Illinois for his deference. We understand we have to make tough choices. They have to include expenditure cuts. We have already started with the continuing resolution of the last year where we reduced spending significantly. But we have to have revenue on the table. As Federal Reserve Chairman Bernanke said: [ . . . ] a sharp fiscal consolidation focused on the very near term could be self-defeating if it were to undercut the still-fragile economy. We need to create jobs. We need to balance deficit reduction with job creation. We need to put everything on the table, and we need to recognize that the consequences of default on our debt will be staggering, felt by every American. One figure that continues to be impressed upon me is the fact that for every 1 percent increase in the interest rate over the 10-year period, we increase our deficit by over $1 trillion. I think the first response to a default would be a rise in the interest rates we have to pay for our debt. I would urge progress on the efforts to have a comprehensive solution. I yield the floor. The PRESIDING OFFICER. The Senator from Illinois is recognized.
