{ 1998/09/23 TIME: 11-30 , Wed. 105TH SENATE, SECOND SESSION}

{ NOT AN OFFICIAL TRANSCRIPT OF THE SENATE PROCEEDINGS.}

{11:30:02} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

{11:34:18 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: MR. PRESIDENT?

{11:34:21 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: THE SENATOR FROM IOWA.

{11:34:22 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: I ASK THAT FURTHER PROCEEDINGS UNDER THE QUORUM
           CALL BE DISPEPSED WITH.

{11:34:25 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: WITHOUT OBJECTION.

{11:34:26 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: I ASK A PARLIMENTARY INQUIRY. WHAT IS THE FLOOR
           SITUATION RIGHT NOW IN TERMS OF TIME UNDER THE UNANIMOUS
           CONSENT AGREEMENT THAT WAS REACHED YESTERDAY?

{11:34:36 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: THE SENATOR HAS THE RIGHT TO OFFER AN
           AMENDMENT AND THE SENATOR HAS 15 MINUTES REMAINING ON HIS TIME.

{11:34:40 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: I'M SORRY. HOW MUCH TIME?

{11:34:43 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: 15 MINUTES. MR. HARKIN: ON OUR SIDE?

{11:34:46 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: THAT'S CORRECT.

{11:34:48 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: SO THERE'S 15 MINUTES LEFT ON THIS SIDE.

{11:34:58 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: THAT'S CORRECT.

{11:35:03 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: I SEE. MR. PRESIDENT, I WOULD YIELD SEVEN MINUTES
           TO THE SENATOR FROM MINNESOTA, SENATOR WELLSTONE.

{11:35:14 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: THE SENATOR FROM MINNESOTA IS
           RECOGNIZED.

{11:35:17 NSP} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           MR. WELLSTONE: PARLIMENTARY INQUIRY, MR. CHAIRMAN. HAS THE
           AMENDMENT BEEN CALLED UP?

{11:35:22 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: MR. PRESIDENT, THEN STILL RESERVING PLIGHT TO THE
           FLOOR, I WOULD ASK THAT THE AMENDMENT BE BROUGHT UP AT THIS
           TIME.

{11:35:26 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: THE CLERK WILL REPORT.

{11:35:29 NSP} (THE CLERK) { NOT AN OFFICIAL TRANSCRIPT }

           THE CLERK: THE SENATOR FROM IOWA, MR. HARKIN FOR HIMSELF AND
           OTHERS, PROPOSES AN AMENDMENT NUMBERED 3616.

{11:35:34 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: MR. PRESIDENT, I ASK UNANIMOUS CONSENT THAT FURTHER
           READING BE DISPENSED WITH.

{11:35:37 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: WITHOUT OBJECTION.

{11:35:41 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: THEN I WOULD YIELD SEVEN MINUTE MINUTES TO THE
           SENATOR FROM MINNESOTA.

{11:35:44 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: THE SENATOR FROM MINNESOTA.

{11:35:46 NSP} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           MR. WELLSTONE: I WOULD ASK UNANIMOUS CONSENT THAT MY FULL
           STATEMENT BE INCLUDED IN THE RECORD.

{11:35:48 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: WITHOUT OBJECTION.

{11:35:50 NSP} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           MR. WELLSTONE: I THANK THE CHAIR AND I THANK MY COLLEAGUE FROM
           IOWA. I'M GOING TO HAVE TO FIGURE OUT HOW TO SUMMARIZE WHAT IS
           A LONGER STATEMENT AND A LONGER ANALYSIS. I DON'T THINK I'M
           GOING TO BE ABLE TO DO JUSTICE TO THE QUESTION THAT IS BEFORE
           US. WE HAD A LITTLE BIT OF A CONFUSION. WE WERE OVERHEING
           PRESIDENT NELSON MANDELA AND LOST SOME VALUABLE TIME ON THE
           FLOOR. ALTHOUGH I MUST SAY, I WOULD NEVER HAVE TRADED THAT
           EXPERIENCE TO HEAR PRESIDENT MANDELA. MR. PRESIDENT, FOR THE

{11:36:20} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           LAST FEW MONTHS, WE'VE BEEN SO ABSORBED WITH THE CRISIS IN THE
           WHITE HOUSE, I'M AFRAID WE'VE NEGLECTED ANOTHER CRISIS THAT
           MIGHT END UP HAVING A FAR GREATER IMPACT ON ORDINARY WORKING
           AMERICANS. I'M TALKING ABOUT A GLOBAL ECONOMIC CRISIS WHOSE
           EFFECTS ARE ALREADY BEING FELT ON OUR SHORES. THE SITUATION IN
           THE GLOBAL ECONOMY TODAY IS MUCH MORE THAN TROUBLING. IT'S
           DANGEROUS. I BELIEVE WE MUST ACT NOW TO STOP THE WORLD FROM
           SLIPPING INTO A DEFLATIONARY SPIRAL, AND, BY THE WAY, I WOULD

{11:36:52} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           LIKE TO GIVE BILL RIDER JUST A LITTLE BIT OF MENTION IN HIS
           BOOK "ONE WORLD READIED OR NOT." I THINK BILL DESERVES A
           TREMENDOUS AMOUNT OF CREDIT FOR BEING PROPHETIC ABOUT WHERE
           THIS INTERNATIONAL ECONOMY MIGHT GO. MR. PRESIDENT, I BELIEVE
           WE MUST ACT NOW TO STOP THE WORLD FROM SLIPPING INTO A
           DEFLATIONARY SPIRAL. SURELY PART OF THE SOLUTION -- IT'S NOT
           THE WHOLE SOLUTION -- IS FOR THE FEDERAL RESERVE TO CUT
           SHORT-TERM INTEREST RATES SIGNIFICANTLY. I HOPE THAT ALAN
           GREENSPAN, CHAIRMAN GREENSPAN, TODAY IN HIS TESTIMONY WILL
           INDEED SIGNAL THAT HE'S READY TO DO THAT. THIS MAY BE ONLY ONE

{11:37:27} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           PART OF THE SOLUTION, BUT IT'S AN IMPORTANT PART, AND THAT'S
           WHAT THIS SENSE OF THE CONGRESS RESOLUTION IS ALL ABOUT. MR.
           PRESIDENT, THE GLOBAL ECONOMIC CRISIS IS UNLIKE ANYTHING MANY
           OF US HAVE EVER EXPERIENCED IN OUR LIFETIMES. FOR THE FIRST
           TIME SINCE THE 1930'S, WE SEE G.D.P. FALLING IN OVER
           ONE-QUARTER OF THE WORLD ECONOMY. LAST WEEK PRESIDENT CLINTON
           CALLED THIS "THE GREATEST FINANCIAL CHALLENGE IN THE LAST
           HALF-CENTURY," ANDS EA RILETE. IF WE CHOOSE TO DO NOTHING, WE

{11:38:02} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           WILL HAVE LITTLE HOPE OF ESCAPEING FROM THIS CRISIS UNSCATHED.
           AS CHAIRMAN GREENSPAN RECENTLY TESTIFIED, WE CANNOT FOREVER BE
           AN OASIS OF GROWTH FROM SO MUCH OF THE WORLD'S ECONOMY IS
           CONTRACTING. LOWERING INTEREST RATES WILL ADDRESS THE GLOBAL
           CRISIS IN SEVERAL WAYS. IT WILL SUPPLY SOME MUCH-NEEDED
           LIQUIDITY TO A WORLD ECONOMY STARVED BY MASSIVE CURRENCY
           DEVALUATIONS. IT SHOULD HELP RESTART CAPITAL FLOWS TO CRISIS
           COUNTRIES, LOWER RATES WILL HS -- SHOULD ALSO WEAKEN THE DOLLAR

{11:38:37} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           MAKING IT EASIER FOR FOREIGN BORROWERS TO REPAY THEIR
           DOLLAR-DOMINATED DEBT, BOOSTING THE YEN AGAINST THE DOLLAR
           SHOULD MAKE OTHER ASIAN COUNTRIES MORE COMPETITIVE AND HELP
           STABILIZE THEIR ECONOMIES. THE END RESULT WILL BE HIGHER WORLD
           ECONOMIC GROWTH AND LESS INSTABILITY IN THE FINANCIAL MARKETS.
           MR. PRESIDENT, I CAN'T EMPHASIZE ENOUGH HOW IMPORTANT THIS
           SENSE OF THE SENATE AMENDMENT IS BECAUSE WE'RE ATTEMPTING TO
           SEND A SIGNIFICANT HALL HERE. I COME FROM THE -- A SIGNAL HERE.

{11:39:12} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           I COME FROM THE MIDWEST. WE SEE A CONTRACTION IN THE FARM
           ECONOMY. WE SEE FARMERS DRIVEN OFF THE LAND BECAUSE OF
           RECORD-LOW PRICES. BUT WHAT I SEE IS ALSO AN ABSOLUTELY
           IMPOSSIBLE SITUATION HERE WHERE WHAT IS HAPPENING IN THIS WORLD
           ECONOMY IS SURELY GOING TO AFFECT US. AND THERE IS NO QUESTION
           BUT BY LOWERING INTEREST RATES IN COORDINATION WITH OTHER
           COUNTRIES, GERMANY, G-7 COUNTRIES, IN COORDINATION WITH REALLY
           A NEW INTERNATIONAL STRUCTURE, WE CAN AT LEAST INCREASE DEMAND.

{11:39:43} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           IF THERE'S ONE THING WE MUST DO, IT IS INCREASE DEMAND IN ALL
           OF OUR ECONOMIES SO THAT PEOPLE WILL BE ABLE TO CONSUME AND SO
           THERE WILL BE MARTS. BILL GRIDER WAS RIGHT. THE MAJOR THREAT
           NOT ONLY TO THE INTERNATIONAL ECONOMY BUT TO OUR COUNTRY IS NOT
           INFLATION, IT'S DEFLATION. ALL THE ARGUMENTS ABOUT THE PHILLIPS
           CURVE DON'T STAND UP. IT'S NOT TRUE WHEN YOU HAVE LOW LEVELS OF
           UNEMPLOYMENT, YOU AUTOMATICALLY SET INTO GEAR AN INFLATIONARY
           SPIRAL IN YOUR ECONOMY. THAT HAS NOT HAPPENED. THERE IS NO

{11:40:17} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           EVIDENCE THAT IT WILL HAPPEN. AND THE NUMBER-ONE ENEMY RIGHT
           NOW IS NOT INFLATION, BUT THE WHOLE QUESTION OF DEPLACING. THE
           WHOLE QUESTION OF A DEPRESSION IN A GOOD PART OF THE
           INTERNATIONAL ECONOMY WHICH IS GOING TO DRAMATICALLY, CRUCIALLY
           AFFECT THE QUALITY OF OUR LIVES AND OUR CHILDREN'S LIVES AND
           OUR GRANDCHILDREN'S LIVES AND THE FEDERAL RESERVE BOARD, LED BY
           MR. GREENSPAN, MUST LOWER REAL INTEREST RATES. THEY ARE TOO
           HIGH. IT IS -- IT MAKES NO SENSE WHATSOEVER FROM THE POINT OF
           VIEW OF THE BEST FISCAL MANAGEMENT, FROM THE POINT OF VIEW OF

{11:40:50} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           FOCUSING ON ECONOMIC PERFORMANCE, FROM THE POINT OF VIEW OF THE
           NEED TO HAVE MORE DEMAND IN THESE ECONOMIES, FROM THE POINT OF
           VIEW OF COORDINATING WITH OTHER COUNTRIES LIKE GERMANY THAN FOR
           THE FEDERAL RESERVE BOARD TO LOWER THE REAL INTEREST RATES.
           THAT'S WHAT THIS AMENDMENT CALLS FOR, AND THAT'S WHY I'M
           PLEASED TO JOIN MY COLLEAGUE FROM IOWA.

{11:41:23} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

           AND I WOULD YIELD THE FLOOR.

{11:41:54} (MR. WELLSTONE) { NOT AN OFFICIAL TRANSCRIPT }

{11:42:11 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: THE SENATOR FROM IOWA.

{11:42:11 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: HOW MUCH TIME DO I HAVE REMAINING?

{11:42:17 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: SEVEN MINUTES AND 38 SECONDS REMAINING.

{11:42:20 NSP} (THE PRESIDING OFFICER) { NOT AN OFFICIAL TRANSCRIPT }

           THE PRESIDING OFFICER: I YIELD MY TIME, DS

{11:42:23 NSP} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           MR. HARKIN: I YIELD MY TIME, WHATEVER TIME I HAVE HERE. THIS
           AMENDMENT IS COSPONSORED BY SENATORS DORGAN, SENATOR ROBERT
           KERREY AND SENATOR BRYAN BRYAN, AND SENATOR WELLSTONE. THE
           FEDERAL OPEN MARKET ECONOMY RIGHT NOW, BECAUSE OF THEIR
           ACTIONS, REAL INTEREST RATES ARE RISING. IN FACT REAL INTEREST
           RATES ARE AT AN HISTORICALLY HIGH LEVEL, THE HIGHEST IN NINE
           YEARS. BECAUSE INFLATION HAS FALLEN WHILE THE FEDERAL RESERVE
           HAS FAILED TO LOWER THE FEDERAL FUNDS RATE. THE CHART HERE I

{11:42:53} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           HAVE POINTS THIS OUT. RIGHT NOW THE FEDERAL FUNDS RATE HAS
           CONTINUED TO GO UP AND RIGHT NOW AT ABOUT 3.9%, FEDERAL
           CHAIRMAN GREENSPAN SAID IN FEBRUARY OF THIS YEAR,
           "STATISTICALLY, IT IS A FACT THAT REAL INTEREST RATES ARE
           HIGHER NOW THAN THEY HAVE BEEN ON THE AVERAGE OF THE POST-WORLD
           WAR II PERIOD." MR. PRESIDENT, I'VE SAID TIME AND AGAIN THAT
           THE HIGH HIGH-INTEREST RATE POLICY BEING IMPOSED BY THE FEDERAL
           RESERVE IS A STEALTH TAX ON HARD-WORKING AMERICAN FAMILIES
           FAMILIES. AND I BELIEVE IT IS A CONTRIBUTING FACTOR TO THE NEAR

{11:43:26} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           COLLAPSE OF SEVERAL ECONOMIES WORLDWIDE. NOW, AGAIN, INTEREST
           RATES HAVE A SIGNIFICANT IMPACT ON VIRTUALLY EVERY FAMILY IN
           AMERICA, EVERY PRODUCER, BUSINESS, FAMILY FARMER IN THIS
           COUNTRY. LOWER RATES HAVE BEEN NEEDED FOR SOME TIME, BUT NOW
           QUICK ACTION IS TRULY CRUCIAL FOR OUR COUNTRY'S WELL-BEING. THE
           ECONOMIC SIGNS NOW ONLY IN THE U.S. ECONOMY BUT IN ECONOMIES
           WORLDWIDE DEMANDS SWIFT AND APPROPRIATE ACTION. MR. PRESIDENT,
           I NOTE IN THE FRONT PAGE OF "THE WASHINGTON POST" THIS MORNING,

{11:43:59} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           IT SAID "SIGNS POINT TO INTEREST RATE CUT." AND THAT -- IT SAYS
           "FEDERAL RESERVE BOARD ALAN GREENSPAN WILL TESTIFY BEFORE
           CONGRESS TODAY AMID GROWING SIGNS THAT HE MAY PROPOSE CUTTING
           INTEREST RATES WHEN FED POLICY-MAKERS MEET NEXT TUESDAY
           TUESDAY." AND IT GOES ON TO STATE HOW MANY EXECUTIVES AND
           ECONOMISTS HAVE CALLED FOR THAT. NOW, MR. PRESIDENT, THE
           AMENDMENT THAT I HAVE AT THE DESK READS THAT -- WE ASK THE
           FEDERAL OPEN MARKET COMMITTEE TO PROMPTLY REDUCE INTEREST

{11:44:32} (MR. HARKIN) { NOT AN OFFICIAL TRANSCRIPT }

           RATES. NOW, THE SENATOR FROM NEW MEXICO HAD SUGGESTED THAT
           PERHAPS WE MIGHT WANT TO ALTER THAT A LITTLE BIT TO JUST SAY
           THAT, PERHAPS, WE SHOULD ADVISE THEM OR -- IT IS OUR SENSE THAT
           THEY SHOULD DO SOMETHING LIKE THAT OR URGE THEM TO DO SOMETHING
           LIKE THAT THAT. WELL, I REFER BACK TO A CONGRESSIONAL
           RESOLUTION PASSED BY THE SENATE ON DECEMBER 18, 1982, AND IT
           PASSED BY 93-0.
{END: 1998/09/23 TIME: 11-45 , Wed.  105TH SENATE, SECOND SESSION}

{ NOT AN OFFICIAL TRANSCRIPT OF THE SENATE PROCEEDINGS.}