Just a gentle reminder that the President doesn’t actually have to wait around for the political mess on Capitol Hill to sort itself out before he ensures an increase in the debt limit. The first thing he could do is demand a clean bill. The politics of the debt limit are such at this point that asking for a clean bill isn’t as fanciful as it was before:
This would be no small threat. If I were a betting person I would hazard a very large sum that if the president stands up and says, “ENOUGH” — that he has tried and tried and tried to work out a compromise acceptable to the two major parties, but he hasn’t been able to and neither have they, that he is now demanding what he should have received in the first place, a bill unencumbered with Republican economic policy — he will be cheered throughout the land. Of course, a segment of Republicans would object. But that would just play into the president’s strategy of isolating the Republicans, of showing that they are far from the mainstream, are obstructionists and unreasonable.
The president’s sitting with the Republican and Democratic leaders day after day, even tolerating walk-outs by House Speaker John Boehner (R-Ohio) and the Majority Leader Eric Cantor (R-Va.) had been a display of patience that has both admirable and also threatening to turn him into a schlub.
The president reportedly remarked to the House leaders, “Eisenhower wouldn’t have sat here like this.” That’s precisely the point. There comes a moment when his sitting there while the Republican leaders bicker and talk their talking points turns into an outright offense to the Office of the President. It’s up to Obama to set things right.
The fact that conservative Republicans like Joe Walsh (R-IL) are hearing an earful from constituents about the consequences of default suggests that the worm has turned, and Republicans would be in a very difficult position to reject a clean bill.
Failing that, the President could, as we’ve said before, invoke the 14th Amendment, Section 4:
The provision in question, Section 4 of the amendment, was meant to ensure the payment of Union debts after the Civil War and to disavow Confederate ones. But it was written in broader terms.
“The validity of the public debt of the United States, authorized by law, including debts incurred for payments of pensions and bounties for services in suppressing insurrection or rebellion,” the critical sentence says, “shall not be questioned.”
The Supreme Court has said in passing that those words have outlived the historical moment that gave rise to them.
“While this provision was undoubtedly inspired by the desire to put beyond question the obligations of the government issued during the Civil War,” Chief Justice Charles Evans Hughes wrote for the court in 1935, “its language indicates a broader connotation.
Obama rejected this at a town hall meeting on Friday, saying, “I have talked to my lawyers, they are not persuaded that that is a winning argument.” That doesn’t necessarily mean that it won’t be used if all the other available arguments are losers, too.
Finally, as two conservative law professors conclude in a New York Times op-ed today, the President could just choose to have the country avoid default:
Where would Mr. Obama get his constitutional authority to raise the debt ceiling?
Our argument is not based on some obscure provision of the 14th amendment, but on the necessities of state, and on the president’s role as the ultimate guardian of the constitutional order, charged with taking care that the laws be faithfully executed.
When Abraham Lincoln suspended habeas corpus during the Civil War, he said that it was necessary to violate one law, lest all the laws but one fall into ruin. So too here: the president may need to violate the debt ceiling to prevent a catastrophe — whether a default on the debt or an enormous reduction in federal spending, which would throw the country back into recession.
A deadlocked Congress has become incapable of acting consistently; it commits to entitlements it will not reduce, appropriates funds it does not have, borrows money it cannot repay and then imposes a debt ceiling it will not raise. One of those things must give; in reality, that means that the conflicting laws will have to be reconciled by the only actor who combines the power to act with a willingness to shoulder responsibility — the president.
That’s right, two conservative law professors wrote that. And they invoked Lincoln, Obama’s favorite President.
And there are more options, like having the Treasury mint a trillion-dollar platinum coin, or having the Federal Reserve destroy the $1.6 trillion in US Treasury debt it holds. The point is that there are ways, both political and Constitutional, for the debt limit to be increased in a clean way. If the President actually wanted that to happen.



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If Obama unilaterally raises the debt limit, or ignores it, it will the be the key topic of 2012. To ignore the law whether by the 14th amendment or in any other way, without the approval of the congress will be the subject of countless TV ads and chatter amongst the talk show crowd. It will ensure that he is a one-term president and we will have to live with Romney, at best, or Bachmann/Palin/Paul/Perry at worst.
Oh, but then he wouldn’t get to cut all those “entitlements” which is his grand goal, his big promise to his backers. He would have to stop giving stuff away. No fun!
Bachmann Baggers Believe Jeebus Will Take Care of the Debt Ceiling
In batshit Bachmannburg, maybe we can just pray real hard to Jesus that international credit bureaus won’t care about all of delinquencies as long as we don’t default on our loans. Maybe Texas Governor Rick Perry can put that on his list of things to pray for at his batshit-crazy prayer fest on August 6: Please Jesus, after you’re done making the weather normal again no matter how badly we roast your planet; and after you’re done winning all the wars for us that George W. Bush started without thinking about it first because you told him to …
Article:
Bachmann Baggers
Oh, if only….
Nice use of “breaking.”
He always has options but instead likes to be “forced” into things. It’s a right-wing inversion of “make me do it”
The president reportedly remarked to the House leaders, “Eisenhower wouldn’t have sat here like this.” That’s precisely the point….
[This is what I find so truly wonderful about blog reporting, the choicest juiciest quotes get pulled from places I never had time to read: "Eisenhower wouldn't have sat here like this." So he does have an awareness of historical context --- and yet a blind spot to Eisenhower enforcing 90% income tax rates on the rich. The ironies of this kind of quote makes me smile. The Obama-pod "we know best" attitude is getting closer and closer to the banana peel.] …There comes a moment when his sitting there while the Republican leaders bicker and talk their talking points turns into an outright offense to the Office of the President. It’s up to Obama to set things right. [But he doesn't see that the offenses are being committed against the office; perhaps then, what he thinks is that they are being committed against him and that's fair play. THAT says something interesting. We find out more each day about what goes on in Obama's head: On the one hand: "I know best", on the other hand "I'm not good enough to escape abuse." You're right, Eisenhower wouldn't have taken this crap.]
When the Treasury takes those bonds off its books without paying for them, that constitutes “repudiation of debt.”
The obvious alternative is for the Treasury to mint a $1.6T jumbo coin and purchase those bonds from the Fed, whereupon the Treasury could retire them with being accused of debt repudiation.
I’d like to see Romney try it. “President Obama singlehandedly saved America and the world from immediate collapse! STOP HIM OR HE’LL DO IT AGAIN!!!!”
Obama has options, but he will take only those which he feels his base (Big Money donors) will support or demand he take.
If the Wall Street Gang Banksters want a default, for whatever reason, there will be one. If they don’t, there will be strong actions taken to avoid one.
Obama does not work for us.
Now, a serious question: If the Fed was able to make loans to banks of $16.1 Trillion to prevent the Too Big To Fail going under, why can’t the Fed do something about this amazingly stupid crisis? Or do the Fed governors work for the same masters Obama does, and it’s simply up to them?
Obama should just act (as if that’s likely to happen)
He could come out with a simple but elegent speech that the Congress could not find a solution to a problem whose time has come to fruition, and that if he did not act, the consequences would have been dire. He could then take the blame upon himself, accepting the political risk, and saying, now that the pressure is off Congress, it is time they man up to the table and act like they can do the job that voting Americans sent them to do.
Of course, we know his political strategists, thinking of fall, 2012, would never allow him to do this. Far too presidential.
More succinctly:
Time for that Andy Sheperd moment.
Betcha some hedge funds are in on the script and will make many more gagillions when treasuries move on whatever happens. Leverage can be tremendous.
I thought Reagan was his favorite. Did he change his mind again?
Which he doesn’t. Nothing less than beginning the destruction of SSMM will satisfy his egotistical bloodlust.
greybeard? oh really! you are a very, very, optimistic person.
Obama is a 1 term president, his presidency ended last week!
you need to prepare for President Romney, Paul, Perry, Palin, Bachmann now.
Hello ” I am president OBAMA I cut taxes for the rich, and cut Social Security for the poor” do you think this is going to play well in 2012?
Baby Boomers will not vote for OBAMA, they will vote Dem, but ignore OBAMA,
2012 =
Dem House
Dem Senate
GOP white house, yes this is how it will all playout.
Obama won’t invoke the 14th Amendment because it wouldn’t be bipartisan.
He imagines himself as the only adult in the room and able to bring everyone together, doing such an unilateral action would deeply undercut that image.
and if were lucky enough to get anyone but obama in 2012 I would call that a win for the USA Working Class Citizen.If we had a Republican President the house and senate Demorats might get a spine and block the dismanteling and cutting the staples of the retired and disabled.The Demorats could grow a spine and start pushing bills loaded with Carrots and Big Hardwood Sticks that would encourage businesses to be more of a Patriot toward liveable wage jobs for USA Citizens.
The debt limit will be increased by hook or by crook because not increasing hurts both parties in 2012 and that puts the Nov 2012 elections in a cocked hat. Both parties are looking for an issue that will assure the other party will be creamed. However, this issue is playing out badly for both sides, and with everyone’s feet mired deeply in doo-doo, foot washings that simplify the issue and just get it done are in the offing.
“Reagan” didn’t sit well with many of his supporters, and so history gets another re-write, thanks to Ms. Drew.
Sheeeit, – Jimmy Carter wouldn’t have sat there like this.
not a bad result
Direct Action
Just a technicality here, reference the title of this post.
If Obama invokes the 14th amendment, he wouldn’t (or at least shouldn’t) increase the debt limit. What he would be doing would be to nullify the debt limit, which is what those of us that read the 14th amendment that way believe it does.
In other words it would be like the “nuclear option” in the Senate. If that had been played, it would’ve been the end of the filibuster forever. Likewise, if the Presdident invokes the 14th (properly), it will be the end of debt limit language.
And for those that somehow want to claim that this would remove Congress’ control over debt limits from Congress (a wacky claim I saw some talking head on TV make believe or not), wrong. Congress passes every dollar appropriated and ALREADY has in it’s power the ability to limit the debt.
Also, Congress passed a LAW appropriating and authorizing the expenditure of XXX funds. Congress also passed a law limiting the debt.
Why does Obama HAVE to enforce the latter at the expense of the first??? He could just as easily claim the laws are contradictory (they are) and therefore he had to choose one. And he could CHOOSE which one he enforces.
Again, this is ALL MORE EVIDENCE that this WHOLE THING is KABUKI.
Obama is playing his part. If he really were a President that just wanted to enforce the current laws without worry of a debt limit now or at anytime between now and the election, HE CAN ALREADY DO THAT BY THE MEANS MENTIONED.
That he CHOOSES not to is evidence that he’s playing his part in this theater.
WAKE THE FUCK UP PEOPLE.
Me likey!!
Thank you, SD!
;~DW
good radio interview with Dave Dayen, mentioned in the twitter column.
very clear explanations of this mess.
Ani DeFranco put out 2 albums adding her music to some choice stories/wisdom of Utah Phillips.
Fellow Workers and The Past Didn’t Go Anywhere
Highly recommended for anyone seeking peace and social and economic justice.
Great post.
Could we please, however, eliminate block quotes of italics as they are practically unreadable. Instead of adding emphasis, as you desire, they become unreadable, not the desired outcome.
See:
Italics are quite handy for emphasizing words or short phrases. They tend to have a softer emphasis than emboldening. Italics should not be used for blocks of text, because they can have a similar effect to serif fonts at small resolutions, reducing readability. Sans-serif fonts that work well on screen can have poor readability in italic form.
http://www.webdesignfromscratch.com/basics/readability/
PW – that’s cute, but I see an image that combines Obama in a stripped prison uniform signing a $1 trillion spending bill with a voice over that intones “Obama ignored congress and spent over $X trillion without your approval”
Are you gonna go on every thread with the same comment? We had this discussion a couple months ago. Apparently your suggestion didn’t go very far at the time so you figured you’d try again?
The Fourteenth Amendment is the law. The Constitution is the foundation of all the other federal laws. Obama can’t legally ignore the obligations the U.S. has already taken on. The Congress has passed lots of laws, and right now, some of them are in conflict.
What makes this tricky is that the 14th Amendment doesn’t speak to the debt ceiling directly. So long as there are alternatives that leave unquestioned the validity of the public debt of the United States, there is no Constitutional issue with refusing to raise the debt ceiling (one alternative, for example, would be to sell off governmental assets to meet our debt obligations). Now, I don’t want to see “The Lincoln Memorial, sponsored by Toyota” any more than the next guy… but the 14th Amendment argument seems weak to me.
That being said, just because it is a weak Constitutional argument doesn’t mean that it can’t work. I don’t think he’ll be impeached if tries it and the Supreme Court almost certainly won’t step in. If a President pursues a course of action based upon unsound legal principles and no one challenges it, is it really unConstitutional? He may be voted out of office because of it, but maybe not… and besides, he knew the job he signed on for.
You are absolutely correct. That does not change the fact that to invoke this approach will be considered unilateral and will create a firestorm and attacks next year.
Or he could be considered decisive. A Decider. A Problem Solver. Once upon a time that was also considered a manly Presidential Trait. The American people don’t want this crappy show to continue. Sooner or later he’s going to have to extricate himself from this impossible situation he’s got himself in. Though there’s still the problem that he’s committed himself to the grand goal of “deficit reduction,” which he tells us will later down the road put the country in a better position to spend money on creating jobs.
Let us all hope so. This will allow the continuing collapse to smear the Reprobates, who’s Prez willpush for even crazier positions. In the meantime, libera/progressives can work on the Dumbmotherfuckerocrats.
“Now, a serious question: If the Fed was able to make loans to banks of $16.1 Trillion to prevent the Too Big To Fail going under, why can’t the Fed do something about this amazingly stupid crisis? Or do the Fed governors work for the same masters Obama does, and it’s simply up to them?”
Seems that they could.
http://pragcap.com/james-galbraith-responds-to-paul-krugman
However, this option is not one that will increase the debt ceiling. Instead it will make it irrelevant. See: http://my.firedoglake.com/letsgetitdone/2011/07/20/beyond-the-debt-ceiling-the-30-trillion-plan-for-ending-borrowing-and-the-national-debt/
Pushed all these ideas – especially coin seignorage ! – to Thom Hartmann’s site. Let’s hope TH and Bernie will use their intelligent lectern to interrupt the governmental banging of the baby recovery’s head on the debt ceiling. Perhaps a few thousands of letters and calls to Congress might open the door to the asylum a wee crack and let in the winds of change we can believe in.