The thing is, the coin option sounds silly, but it clearly obeys the letter of the law. As far as I can tell, none of the other options — other than outright surrender — has the same virtue. Failing to pay debt service would be a breach of contract. Paying contractors, and maybe Social Security recipients, in scrip would violate the law, which says that they should be paid — not given IOUs. Deciding that the president has the right to ignore the debt limit after all would avoid these legal breaches at the expense of another breach.Indeed, what else would be legal and would work? That's why Obama can be counted on NOT to do it... :-(
(Krugman provides some details here.)
UPDATE: Treasury says they won't do it. WTF happens now? And who gave an executive department the authority to override a presidential order? Stranger and stranger...
Not only wouldn't he do it, he made sure the Republicans know he won't do it, so they provide him with cover for his assault on the social safety net.
ReplyDeleteThe 'lesser of two evils' has yet to show that the description is apt.
Bryan, I almost throw up every time I remember I voted for Obama. Twice. And yet I still feel there was no choice, mostly because of women's rights matters. When abortions are done with coat hangers in back-room "clinics" and even rape is "on the table," one simply must resist the GOP as the total nutjobs they are. Had Rmoney become president, American women would just about now be learning how to tie their hijab, at least those American women not already stoned to death. And the economy... yes, I believe Paul Ryan is actually worse than Obama, even as bad as the latter is proving to be. FWIW, I gave the Obama campaign no money at all, and scant endorsement. I don't like having no candidates on my side... none at all. Politics in America now belongs to the highest bidder, no matter who is in office.
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