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kentuck

(111,110 posts)
Wed Oct 2, 2013, 11:24 PM Oct 2013

Should the President sit idly by and watch the Congress default on our debt??

(pnwmom had this link in an earlier post)

http://www.nytimes.com/roomfordebate/2013/10/02/can-obama-ignore-the-debt-ceiling/emergency-powers-let-the-president-borrow-beyond-the-debt-limit

<snip>
Hamilton, like Locke and others before him, believed that ultimately the executive in a liberal constitutional system must have a power — sometimes, called the “prerogative” — to act unilaterally to address serious unanticipated threats to public well-being.

Thomas Jefferson, normally Hamilton’s antagonist, agreed with Hamilton that the executive must sometimes take actions that are not authorized by the Constitution. In a famous letter, Jefferson posed a hypothetical where gridlock in Congress blocked the country from acquiring needed territory: “Ought the Executive, in that case, and with that foreknowledge, to have secured the good to his country, and to have trusted to their justice for the transgression of the law? I think he ought, and that the act would have been approved.” Jefferson would have the executive act extra-legally rather than based on an expansive Hamiltonian interpretation of the Constitution, and then seek vindication from the public. Such thinking justified in Jefferson’s mind his purchase of the territory of Louisiana from France despite his view that he lacked the constitutional authority to do so.

Whichever view you accept, it provides a basis for President Obama to raise the debt ceiling on his own if he believes with good reason that the failure to raise the debt ceiling would lead to default on U.S. debt, and that this in turn would lead to the collapse of the financial system and economic depression. Default is not a legitimate policy choice; no one favors it. It would result from a failure of our institutions, not from a compromise among contending political groups, and the president’s intervention would surely be ratified by the public and even by Congress.

The contrary view — that the president must sit helplessly as the economy collapses, fettered by a reading of an 18th-century document that not even the founders would have believed appropriate — reflects a legalistic mentality that none of our great presidents has possessed or acted on.

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longship

(40,416 posts)
1. Then there's the sharks in the water smelling blood.
Wed Oct 2, 2013, 11:41 PM
Oct 2013

The House Republicans.

My thinking is that President Obama is not likely to be throwing chum over the transom before he jumps into the water. He doesn't want to get into a "we're gonna need a bigger boat" scenario.


kentuck

(111,110 posts)
2. What do you think the President should do?
Wed Oct 2, 2013, 11:45 PM
Oct 2013

If we are one hour from defaulting on the debt, should he do anything?

 

Cali_Democrat

(30,439 posts)
6. Yes. Have a press conference and tell Boehner to have an up or down vote
Wed Oct 2, 2013, 11:51 PM
Oct 2013

The problem is that Boehner won't even allow these bills to the floor unless they are approved by the crazies in GOP.

They would pass easily.

longship

(40,416 posts)
7. I don't know. Events and politics have overtaken my experience.
Thu Oct 3, 2013, 12:14 AM
Oct 2013

I have been very politically active since my first presidential election, in 1972, when I was a precinct delegate for McGovern. Since then, I have done a lot -- less recently, age has its challenges.

But I have never seen anything like what is going on here. We saw rather alarming glimmerings of this in the latter part of the 80's in Kansas. I served there as a county party officer and state delegate. We had a wonderful organization with a permanent headquarters and a salaried executive director, even during non-election years. I applied for the ED position, but the party opted for the best person. alas, I settled for party treasurer, an elected, but volunteer position.

We did good. KS governors were almost wholly Democrats back then. The last was Kathleen Sibelius. But we saw bad things happening in the Republican Party. We had evidence of theocratic undercurrents. The GOP monthly newsletter spoke more of Jesus than candidates. It alarmed us.

Nobody listened.

And here we are.

meadowlark5

(2,795 posts)
3. What about the 14th amendment?
Wed Oct 2, 2013, 11:46 PM
Oct 2013

Wasn't there a lot of talk about that amendment last debt ceiling stand off, stating the govt shall not not meet it's financial obligations. Basically giving the president the authority to raise the debt ceiling.

Is that true or was that amendment being loosely interpreted? I sure hope it's true and Obama cuts them off at the knees if they threaten to default just to stop Obamacare.

tularetom

(23,664 posts)
4. Seems to me that if he does so, he has in effect acquiesced to a congressional coup
Wed Oct 2, 2013, 11:46 PM
Oct 2013

and participated in the neutering of the executive branch.

History would not be kind to him if he were to fail to act. Nobody will remember Ted Cruz and the 50 or so tea bag congresscritters who actually precipitated a constitutional crisis, but everybody will remember that it took place during Obama's term.

He's a bright man. And aware of his legacy. He's not about to cave on this, even if it results in impeachment.

kentuck

(111,110 posts)
5. If we reach the 11th hour and are ready to default on our debt....?
Wed Oct 2, 2013, 11:49 PM
Oct 2013

Then the President should act. He should not let the Congress default on our debt.

I think this will be his legacy.

kelly1mm

(4,734 posts)
9. Him 'acting' by trying to say that the 14th amendment makes the debt ceiling itself
Thu Oct 3, 2013, 01:10 AM
Oct 2013

unconstitutional and/or minting a 2 trillion dollar coin may in fact be legal. However, I really don't think it would help much. The real problem with default is that the interest rates on the national debt would go WAY UP so, there would be a WAY larger % of total government inflows going out to pay interest and less for everything else. Right now the US has a debt of about 17 trillion. at 2% interest that is about 340 billion a year, or about 10% of government revenue (IIRC, about 3.8 Trillion) if interest rates go to 4% then 20% of revenue goes to interest, if 6% then 30%. If it gets to 12% for interest (like in the late 70's-early 80's) then 60% of revenue would go to debt service.

OK, so that's the problem we are trying to avoid (IMO). So, how does the 14th Amendment/2T coin fit in? Confidence. Even the promoters of these strategies say that they will be fought in court and/or are legally questionable. Investors will price that uncertainty into the interest rate charged on the debt issued. So, maybe not AS BAD as a true default, but certainly destructive enough.

 

Rex

(65,616 posts)
8. He should do exactly what he is doing, trying to enforce a bill decide on by Congress!
Thu Oct 3, 2013, 12:15 AM
Oct 2013

The fact that some cannot stand it, is a testament to their hatred of democracy.

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