May 09, 2013
Vote Alert: House Republicans Put China Before Veterans and Troops
221 House Republicans just voted to pay Chinese bondholders before American troops in harm’s way and our veterans. Instead of solving problems and making sure the nation avoids default, House Republicans manufactured yet another crisis and pushed through a plan that puts China first in line if a default happens.
In an interview this week, House Speaker John Boehner admitted that this plan would ensure that bondholders in China, Iran and the Cayman Islands would be paid before American troops, disabled veterans, doctors and hospitals treating Medicare patients, and American small businesses.
“House Republicans’ misplaced priorities have reached a new low – now they’re putting millionaire Chinese bondholders before American troops, veterans and middle class families,” said Jesse Ferguson of the Democratic Congressional Campaign Committee. “The Republican Congress is manufacturing yet another false crisis to throw the U.S. economy into default and its latest jaw-dropping ploy is to pay China’s bondholders instead of U.S. troops. Americans want true problem-solvers to stand up for them, not House Republicans’ extreme ideology and out-of-touch agenda.”
U.S.’s Largest Foreign Creditor Is China. “China is the largest foreign creditor to the United States, holding more than $1 trillion in Treasury debt as of March, U.S. data shows.” [Reuters, 6/08/11]
Boehner “Essentially Agreed With Democrats” That Bill “Would Put China Before U.S. Troops.” According to the Huffington Post: “House Speaker John Boehner (R-Ohio) on Tuesday essentially agreed with Democrats' arguments that a Republican bill to prioritize debt payments would put China before U.S. troops -- except he suggested that would be a good thing. […] When show host Peter Cook asked if Boehner's comments mean that, as Democrats have suggested, Republicans are basically choosing to pay China before paying U.S. troops, Boehner didn't disagree. ‘Listen. Those who have loaned us money, like in any other proceeding, if you will, court proceeding, the bondholders usually get paid first. Same thing here,’ Boehner said. Notably, the description of a court proceeding where bondholders get paid first is not just any court proceeding. It's a bankruptcy court proceeding.” [Huffington Post, 5/07/13]
- · Headline: John Boehner On Debt Ceiling: Let's Pay China First, Then U.S. Troops [Huffington Post, 5/07/13]
House Republicans Are Pushing Bill Destined For Failure, As the President Has Pledged A Veto of Bill. Days before the House Republican leadership brought HR 807, the Full Faith and Credit Act, the President issued a Statement of Administration Policy pledging to veto the bill. [Office of Management and Budget, 5/07/13]
Boehner Agreed with the President that “the Country Isn’t Facing an Immediate Debt Crisis.” According to the Los Angeles Times: “The country isn’t facing an immediate debt crisis, House Speaker John Boehner (R-Ohio) said Sunday, but he argued that Congress and the president must reform entitlements to avert one that lies dead ahead. ‘We all know that we have one looming,’ Boehner said on ABC’s ‘This Week.’ ‘And we have one looming because we have entitlement programs that are not sustainable in their current form. They’re going to go bankrupt.’ Boehner expressed agreement with Obama's statement in an ABC interview the other day that the debt doesn't present ‘an immediate crisis.’” [Los Angeles Times, 3/17/13]
- · Headline: There's no immediate debt crisis, Boehner says, agreeing with Obama [Los Angeles Times, 3/17/13]
The President Has Cut $2.7 Trillion From The Deficit. According to a CNN fact check of the President’s 2013 State of the Union speech: “In fact, the latest savings estimate is actually closer to $2.7 trillion, according to Marc Goldwein, CRFB's senior policy director. Of that amount, $1.57 trillion comes from spending cuts, $690 billion from increased tax revenue and $430 billion from interest savings.” [CNN, 2/12/13]
The President Has Reduced the Deficit to $845 Billion for 2013. According to the Associated Press, “The Congressional Budget Office analysis released Tuesday says the government will run a $845 billion deficit this year, a modest improvement compared to last year's $1.1 trillion shortfall.” [Associated Press, 2/05/13]