US looks down on the barrel Yet Another Self-Imposed Default PossibilityHouse Republicans, now Effectively guided by the most deranged members of the Freedom Caucusopenly promising take America’s full trust and credit hostage to extract massive concessions from President Joe Biden and his fellow Democrats.
of dire consequences The default details are well documented. US debt is virtually the foundation of the global financial system. If the world starts to doubt its credibility, we could have a massive recession, if not a catastrophic financial crisis.
Without the coin, the president would be breaking the law in some way.
However, there is one aspect of the debt limit issue that has gone largely unreported. That is, following a restriction is just as illegal as ignoring it. If Republicans refuse to raise the debt ceiling, the president will be in trouble. That is, while he demands spending, he forbids borrowing the necessary funds. Unless he chooses the platinum coin loophole, Biden will have no way out. Without the coin, the president would be breaking the law in some way. It is hard to understand why he would choose a choice that would cause an economic crisis.
Let’s review the situation. Treasury Secretary Janet Yellen said: On Thursday, the department will begin shuffling various accounts to try and stop it from actually violating the debt ceiling, but the trick is estimated to come into play in June. You have not agreed to the set of demands you make, but Some hardliners mentioned Cut spending by $1 for every dollar of new debt, cut spending to fiscal 2022 levels, end new funding to the IRS, roll back abortion rights. Meanwhile, House Republicans reportedly Priority payment plan It voids all but government bonds, Social Security, Medicare, veterans benefits, and military interest payments.
Basically, they want the Democrats to repeal all of last year’s hard-won bills or shut down like a quarter of the government. per Washington Post — indefinitely. But such measures would need to be passed by both Senate Democrats and Biden. rejected unruly concessions. moreover, experts agree Given the sheer volume of payments the government makes every day, prioritizing payments is logically impossible.
Meanwhile, during the lame duck session, Congress passed a $1.7 trillion appropriation bill that will continue to fund the government through September. sign the law Congress has directed the executive branch to run the government at specified spending levels through the end of the fiscal year, but has now refused to grant the borrowing powers necessary to carry out its own directives.
If the debt ceiling is hit and the coin is ruled out, Biden will have to choose which law violations to commit.
It may sound silly, but that’s why the famous platinum coin is the most legally defensible option for Mr. Biden. Law of 1997 explicitly allow Treasury Secretary’s Ability to Mint Platinum Coins Any Some have the intended purpose of benefiting the government through seigniorage. If Congress says the president must spend, he can’t borrow, can Mint, then the way is clear for legal adherents. In platinum coins he mints a trillion or two trillion dollars, deposits them with the Federal Reserve and the matter is quickly solved. Economically, it’s practically the same as borrowing money, and perhaps at some point the cap will be raised, replacing coin usage with regular debt.
still managing lawyer clearly disagreeYellen is further said The coin is a “gimmick” that “undermines the Fed’s independence and confuses monetary and fiscal policy.” This is a weak argument in context — reportedly why the gimmick (very overrated) Fed independence would be worse than financial Armageddon.
But in any case, it is very strange that both the administration and nearly all mainstream media coverage treat the debt ceiling as an impregnable legal impediment, while not allowing the same treatment for the Spending Act. am. “Once the government runs out of temporary measures and runs out of cash, it will not be able to issue new bonds.” Alan Lapeport wrote in The New York Times, as if it were the actual physical mechanism that forcibly prevents new borrowing. Nowhere does he mention that if Mr. Biden does not spend as ordered, Mr. Biden will also be breaking the law.
If the debt ceiling is hit and the coin is ruled out, Biden will have to choose which law violations to commit. Certainly, any sane person would choose an option that would not cause dramatic and utterly pointless harm to the global economy. That choice becomes even clearer when you consider that the debt ceiling itself is arguably unconstitutional under the 14th Amendment. which stateas “The validity of the public debt of the United States as authorized by law . . . should not be questioned.” President Abraham Lincoln claimed When Supreme Court Justice Roger B. Tunney tried to stop the incarceration of a man accused of treason during the Civil War, “all but one law was not enforced, and the government itself failed to enforce its Are you taking it apart so you don’t break the law?”
House Republicans, most of whom voted to overturn the 2020 electioncompletely captivated Q anon lunaticThey are so clueless and careless enough to blow up the global economy that they either blame Biden or simply revel in the resulting chaos and destruction. Senate Majority Leader Chuck Schumer, DN.Y. advocated, is wishful thinking. It’s very likely you’ll need something like a platinum coin to stave off the disaster. Mr. Biden must forge himself to permanently break his debt ceiling in his own power.
