Mr. President, Invoke the 14th Amendment. Pay the Bills.

[Yavin4]

Then, tell the Republicans to go fuck themselves.

[Drale]

1. That is what is going to happen

Theres not going to be a deal and the President knows it. You could offer to rename the United State Republican land and if it was Obama's idea they would oppose it.

[Yavin4]

2. You Mean Rename The U.S., Ronald Reaganstan n/t

[Drale]

4. O thats a good one.

:rofl:

[dkf]

3. Debt Ceiling Debate: The Mother of all Timelines

Aug. 2 — The Treasury Department’s deadline for raising the debt ceiling. Here’s how Treasury Secretary Tim Geithner described this drop-dead date, according to a Federal News transcript of NBC’s Meet the Press broadcast on July 10: ”There is no credible way to give Congress more time. There is no constitutional option, there is no delay option, there is no creative financial option. They have to act by the second.”

“The U.S. sovereign rating will be placed on if, contrary to expectations, an increase in the ceiling has not been enacted by August 2,” -Fitch Ratings.

“The Secretary of the Treasury has indicated that the government will have to drastically reduce expenditure sometime around August 2 if the debt limit is not raised; the initiation of a rating review would precede this date,” -Moody’s Investor Service

Aug. 3 – About $23 billion in Social Security benefits checks are due. In a recent Q&A, style explainer Goldman Sachs analyst Alec Phillips noted that Social Security payments might still be made by drawing down the Treasury’s cash balance. “The Treasury would exhaust its financing options when making Social Security payments,” Phillips wrote.

Aug. 4 – “The Treasury Department has a $91 billion T-bill maturity due on August 4, and a failure to pay that obligation under this scenario would cause ratings agencies to issue a “D” rating on the security, and to downgrade the credit rating of other Treasuries, likely by several notches,” wrote analysts at Janney Capital Markets. This seems to be the date when S&P would act. “If you miss a payment, and you’re not in a grace period and you’re out of compliance with the bond indenture, the rating goes to SD, selective default,” said John Chambers, chairman of the sovereign ratings committee at Standard & Poor’s Ratings Services.

http://blogs.wsj.com/marketbeat/2011/07/11/debt-ceiling-debate-the-mother-of-all-timelines/

[sad sally]

5. If Article 5 didn't exist, the President could invoke under Article 4,

If the President tried to use it the Republicans would claim treason.


Section 4.
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

Section 5.
The Congress shall have the power to enforce, by appropriate legislation, the provisions of this article.

[Yavin4]

8. But It Will Be Congress That's in Breach of the Constitution

I say bring on the crisis.

[European Socialist]

6. After what we have seen in the last two years....

How do we know he won't use that power to punch the hippee. But I willing to take that chance.

[Cereal Kyller]

7. K&R

Start using the Constitution instead of abusing it like your predecessor.

[Hutzpa]

9. Sounds like your're trying to setup the President

why would you suggest such a thing, do you understand the ramification of this?

[Yavin4]

10. Sure do.

Bring the bastards on.

[PoliticAverse]

11. Nope, the 14th Amendment won't be invoked as no one involved believes it authorizes the President...

to ignore the debt limit.

http://www.treasury.gov/connect/blog/Pages/FACT-CHECK-Treasury-General-Counsel-George-Madison-Responds-to-New-York-Times-Op-Ed-on-14th-Amendment.aspx

There also won't be a default because the debt limit will be increased before the deadline.

It's simply not in the interest of the majority of the players involved to let it happen.

As we get closer to the deadline the Republicans will increasingly look for a face-saving way out.