Boehner rented a spine?
Those promoting this theory have gotten very specific about how the president will pull this off. (Epps has even taken the time to prewrite the speech Obama could give.) The president would just direct the Treasury Department to keep selling bonds. Obama would explain that the Republicans have left him no choice. The Constitution requires him to see that the laws are faithfully executed, but if he executes the debt ceiling law, he will be failing to execute the scores of laws that Congress has passed and that create the need for new borrowing. Put in this position, Henry Aaron argued this week, the president should follow the least bad option and break the ceiling.
One possible impediment to this plan would be that the White House legal counsel has said the president doesn't have this authority under the Constitution. Sure, but the president can just get another opinion or claim the situation demanded it. He's done that kind of back bend on matters of national security. He granted a waiver to businesses for the Affordable Care Act. A president can always find a workaround.
But the White House says finding a narrow legal rationale for this break-glass emergency measure would do no good because it would offer no certainty to financial markets—and staving off global economic chaos is what this whole exercise is about. "We'd break the glass, but it would only keep the house on fire," says a senior White House aide. The gambit would be up for dispute in the courts and invite chaos in Congress. While the president may be willing to take a political hit for doing something edgy to save the economy, his treasury secretary and economic advisers worry most about the disruption the ensuing legal fights would cause. At the very least........."
Why does everybody keep using the word “default”?
The Dems use it to scare people and the GOP seems to believe the majority of Americans are too stupid to understand basic math.
Rand Paul explained it perfectly last week:
The US takes in approximately $270B per month in various types of revenue. The interest on bonds and to creditors which MUST be paid first per the Consitution before any other debts, totals about $30B. That leaves $240B left to fund entitlements, enough to fund Social Security/Medicare in it’s entirety, Veteran’s benefits, and most, if not all, unemployment compensation. Then from there, it’s a priority game in determining how to spend the remaining few billion.
But the bottom line is that if the debt ceiling is not raised, the US can and will continue to pay it’s MANDATORY debts. Failing to pay an “entitlement” program is NOT a “default”.
Obama WANTS to threaten ‘default’ and would be willing to do so in order to raise the debt ceiling by himself and declare he is saving the nation by doing so.
He's doing what we've been griping about, time to THANK him.
I believe this will help him know the path he is taking is backed up by We The People.
I read a quote once, can't remember who to attribute it to:
” The smartest man I know is my Taylor, for he takes measure of me every time he sees me”
You don't hit a puppy with a newspaper when he Ain't peeing on the floor!
They ought to deliver a throne to the White House with a note from Boehner to His Majesty. Start figuring out pr.
Why was Georgey stunned? Does he think the Repubs will actually hold and not fold?
Obama and his minions are bound and determine to ruin America. Period.
Fact is, if the speaker can hold this line(obamacare or debt limit increase -pick one), watch how fast the dems capitulate.
Boehner stands erect!
I’m glad Boehner is taking a stand, but he clearly cannot handle the press, Cruz has set the example on how to deal with the press, but no one will follow, Boehner looks and acts like an amateur, I couldn’t watch but about three minutes, he’s embarrassing.
Maybe I should have watched the whole thing, but I just could not!
I think this is just for show.
Yesterday it was reported that Boehner said he would bypass the Hastert Rule and let a vote come for raising the debt ceiling. That means Obamacare gets funded and the republicans lose.
There is no out for Obama except to look weak. Same with Boehner except for ignoring the Hastert Rule and saying the House voted to end the shutdown.
I have a thought on something I think has never been done before.
I am wondering if it would be constitutional for the House to sell US congressional bonds for federal reserve notes (created money or created digits). Then I am wondering if they can place the cash proceeds into trust accounts that can be used for specified purposes.
Such an idea would negate the idiotic trial flag idea of Obama using the 14th Amendment to bypass Congress and raise the debt ceiling by EO.
“Default” is a bunch of hooey.
Foster Friess:
It’s impossible to default on the debt——years down the road, maybe
Average monthly interest costs are $18 billion….. we take in on average $225 billion. By law, the president must pay interest first before anything else.
In addition to interest we must roll over the $550 billion of maturing debt each month. Newly issued bonds replace maturing bonds with no net change in total debt outstanding. If the Chinese and other investors won’t purchase them, Federal Reserve Chairman Bernanke will just buy them for the Fed’s account.
When confronted with money problems, adults make decisions and set priorities. We pay the mortgage before we pay the cable bill. But the Obama administration chooses tointentionally inflict pain on the American people by making the most headline-grabbing cuts possible.
What better example of this disgusting antic than erecting physical barriers on Tuesday, blocking access to the open air World War II Memorial to a group of Mississippi visiting vets. Erecting the barriers actually cost money to do so!
They recently shut down White House tours and National Parks but still managed to find the money for bonuses to IRS staffers and a multi-million dollar weekend of golf for the president and Tiger Woods.
The Social Security folks send out $68 billion a month. Active-duty military members get about $12.5 billion. From there, we work through the budget in order of priority, air traffic controllers, meat inspectors, etc. Unfortunately, the $225 billion a month falls short of the federal government’s important obligations.
But why not be honest and say “the government wouldn’t be able to pay all of itsbills” rather than the over-dramatic nonsense that “we will default on our debt”?
Did we need to lay out the $13 billion in crony loans to the solar energy investors that also happen to be major Democratic donors? Or, most especially, the billions that the “Affordable” Care Act is going to cost?
What if we asked employees of departments of agriculture, education, and energy if they would enjoy a voluntary unpaid sabbatical for the number of months they would choose? Would that provide enough cash flow to keep the White House tours going and the parks open for the American people?
The doomsayers have it exactly backwards. Say your personal finances were a mess, so you quit adding debt and cut spending. Your credit score would improve. If you don’t believe me, ask any banker. Why would raising our national debt limit help our credit rating?
Some in the media posit that Standard & Poor’s reduced our credit rating due to “political gridlock.” Do you think it just might be because we are like a household earning $26,000 a year, spending $38,000 and increasing daily, our $169,000 credit card debt? How significant is the comparable $865 sequester reduction in relation to a $38,000 expense level?
Why do we tolerate such nonsense and demagoguery from our politicians and media?
Employees in small towns all across America suffer lower incomes when their employer struggles or goes out of business. In Washington, D.C, forget it! Our Ruling Political Elite believe we out here in the hinterlands (colonies?!) just fell off the pumpkin truck.
If you read or hear of “journalists” talking about default, forward them this...
God Bless
Thank you, John.
Perhaps bonehead has finally realized he will be in one of the first Obama Boxcars.
Boehner is a lying sack of sh*t!
Debt has priority based on the Constitution AND the US takes in MORE than enough to cover the payments - there is NO question that the US will default!
Why is Boehnor pushing this default theory? Its crazy. If the debt limit does not get raised there will still be the same amount of money as there was last year.
On any given day more than enough revenue comes into the Treasury to pay the service on the debt. Barry will just have to prioritize spending just like we all do at home. Some weeks we don’t get the Blue Bunny Pistachio with almond ice cream.
Prolly can’t afford Obamacare, unemployment may have to go back to 6 mos instead of 3 years, 250,0000 govt employees we don’t need may have to go, A few govt agencies may have to be closed, free school breakfast and lunches may have to go, welfare may have to take a major cut, maybe Pakistan doesn’t get their 2 billion in foreign aid to enemies.
Why should Obama care if the US were to default on its debt?
It’s no sweat off his back.
they want the debt ceiling raised... again.
he’s spent $17t in that last 4.5 yrs... and is already putting $1.5t on the debt yearly.
with 0bamacare trying to grab the US healthcare system... which costs more then $3t/yr...
exactly WH much would they want it raised? $1trillion? that’s enough for about 4 months. $2 trillion? 8 months. $3 trillion to bring our det to $20 trillion by this time next year?
year... that’ll work... /sarc