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View Diary: Public debt of the United States shall not be questioned: the 14th Amendment and the debt ceiling (304 comments)

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  •  It would be an interesting out (4+ / 0-)
    Recommended by:
    andgarden, vcmvo2, brooklynbadboy, Sylv

    I think Obama  if pushed, would go the coin route instead of theroute I suggest here.

    The main reason is I thnk the Fed would cooperate with him.

    •  I also like the idea of selling off the (0+ / 0-)

      gold supply.

      It would dive the Paulites crazy!

      Ok, so I read the polls.

      by andgarden on Sun Dec 09, 2012 at 11:28:53 AM PST

      [ Parent ]

    •  Wow ... really? (3+ / 0-)
      Recommended by:
      NM Ward Chair, ferg, HeyMikey

      I confess to having been enamored with the coin idea, but mostly out of prospective perverse glee at seeing wingnut heads explode - not because I think it would really be a good thing for our nation.

      But if it does actually come to pass, I think he's do best to mint enough to stave off further debt limit crises until the next president's term, since congress would doubtless act swiftly to close that particular loophole.

      “What’s the use of having developed a science well enough to make predictions if, in the end, all we’re willing to do is stand around and wait for them to come true?” - Sherwood Rowland

      by jrooth on Sun Dec 09, 2012 at 11:35:51 AM PST

      [ Parent ]

      •  Balkin has a good argument (3+ / 0-)
        Recommended by:
        jrooth, Simplify, HeyMikey

        as to why he shouldn't issue the coin:

        In fact, if the president ignored the debt ceiling and issued his own bonds, or if he publicly announced that he would mint trillion dollar coins or sell an exploding option to the Federal Reserve, he might lose the high ground in the standoff and actually be politically weakened. First, Republicans would feel no obligation to raise the debt ceiling because Obama would have taken all the pressure off them, and government functions would continue normally. Second, any of these strategies would give Republicans the opportunity to go on the attack. They would insist that Obama was acting illegally, go to court to stop him, and possibly even try to impeach him.

        On the other hand, announcing his position in advance, steadfastly refusing to negotiate with hostage takers and assuring the investment community that all interest on federal obligations will continue to be paid regularly and on time puts Obama in a superior position both legally and politically.

        Because I was involved in the debates about the debt ceiling crisis in 2011, I've been interviewed a couple of times about the debt ceiling recently. The first thing reporters always want to talk about is platinum coins. That's fun to think about--it's a sort of financial science fiction--and the counter-intuitive nature of the idea probably attracts readership. But it is completely beside the point. It's not going to happen.

        Similarly, reporters--and more than a few Democrats--are interested in whether the president can invoke section 4 of the Fourteenth Amendment and raise the debt ceiling himself. Again, this constitutional question is quite interesting as an academic matter, but it's not how a debt ceiling standoff will actually end.  (And Obama's press secretary, Jay Carney, has recently repeated the president's view that he lacks the power unilaterally to raise the debt ceiling or otherwise ignore it).

        Rather, the smart move for Obama is to refuse to negotiate with hostage takers and to insist that he will continue to pay the debts of the United States. This is the correct constitutional course of action, and it also puts him in the strongest position politically as well.

        Mostly in accord with Armando.

        Ok, so I read the polls.

        by andgarden on Sun Dec 09, 2012 at 11:51:37 AM PST

        [ Parent ]

    •  And the coin thing is clearly legal. (0+ / 0-)

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