Congress Has More Authority Than They're Using Over The National Debt

Official Wire, The Wall Street Journal ^ | May 12, 2011 | Ed Hassell

[dont_tread_on_malik]

Former White House lawyer, David B. Rivkin, Jr., who is often ahead of the curve in matters of conservative strategy, addressed the country’s runaway debt problem in a May 12 editorial written for The Wall Street Journal.

The article, written by Rivkin and law colleague Lee Casey, specifically points to Section Four of the 14th Amendment, which forbids any default on the outstanding federal debt. “Section Four can become a powerful hammer for the budget hawks if Congress simply reclaims its constitutional pre-eminence in the borrowing process,” the piece argued.

Rivkin then pointed out that the 14th Amendment forbids dishonoring “the validity of the public debt of the United States, authorized by law” which makes the country a greater credit risk since the U.S. constitutionally cannot default on its financial obligations.

Congress should promptly increase the debt ceiling, Rivkin wrote, but with one key caveat: “The increase can be used only for borrowing to service existing obligations.”

[dont_tread_on_malik]

They should really hire Mr. Rivkin to some kind of consultant for the GOP party, if he could do that. He always makes sense, even when some are embarrassing the party. Thank you, Mr. Rivkin, for another thought-provoking piece.

[DManA]

Not sure I get this. Is it that they can borrow only to refinance bonds that are expiring?

[glorgau]

“The increase can be used only for borrowing to service existing obligations.”

Then everything else besides debt service would go "off budget". Better to let the government combine begin to live off it's own internal fat stores. i.e. diet.

[capt. norm]

If they did it that way, the Obama bunch will not be able to pile on new debt.

That would pretty much stop his spending spree.

[phockthis]

So, basically they must pay our debt first before anything goes to Obama’s agenda...