Biden is "considering" using a constitutional mechanism to avoid America's default

[yota691]

Biden is "considering" using a constitutional mechanism to avoid America's default

Arab and international
   

Economy News / Baghdad
US President Joe Biden announced Sunday that he is studying the possibility of resorting to a constitutional mechanism to avoid defaulting the United States, as talks with Republicans stalled over raising the debt ceiling.

 

"I can't guarantee they won't fabricate a default by doing something outrageous," Biden said at the G7 summit in Hiroshima, stressing, "I'm studying Article 14 (of the US Constitution) to see if we have (...) legal authority" to bypass Congress.

 

US President Joe Biden confirmed Sunday that Republican proposals on the US debt ceiling are "unacceptable", according to Agence France-Presse.

 

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"Now is the time for the other side to abandon its extreme positions, because so much of what they have proposed so far is simply and quite frankly unacceptable," Biden told reporters at the G7 summit in Japan.

 

 

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Added 05/21/2023 - 3:20 PM

[yota691]

The 14th Amendment and the Debt Ceiling Explained

Hip Hughes

25,935 views  Oct 10, 2013  The Constitution Explained
My teacher stab at explaining the argument for the 14th amendment being used in relationship to the Debt Ceiling.  "An educated citizenry is a vital requisite for our survival as a free people." ~Thomas Jefferson

 

 

Seneca Brahe
9 years ago
I read up, and you are right. The Fed does not coin (or print for that matter), they apparently pay for the printing costs of the reserve notes (and not for the value of them), and in the case of coins pay the face value for them. Of course, the Fed remains the main holder of all these. Thanks for bringing this up, I always love learning more about the intricacies of our banking system.

jazerazo
9 years ago
awesome video, as always. By the way, could someone explain me what means that whoever is suing wouldn't have "standing"?

SugaryPhoenixxx
5 years ago
Correction: The PEOPLE are responsible for repaying the debt. That is where my problem comes in. 

My government is spending billions of our tax dollars on needles things, that do NOT benefit the people. I call that taxation without representation. Politicians promising one thing, but then bending to the will of their lobbyists is just wrong. 

Our country is in deep, deep trouble.

 

Seneca Brahe
9 years ago
Only if that money accelerates the money supply, there are ways to print and keep down acceleration of M2. We are getting technical here, but you are right that if the printed money entered the money supply too quickly then inflation would result. Nicely done.

 

Seneca Brahe
9 years ago
The Federal Reserve can print/coin, not the government. The FED is a private banking cabal, not an arm of government - as much as it seems it is. You rightly point out that the Fed could easily print/coin the money and buy Treasuries and "give" the government money, which is another thing that can happen if the ceiling is breached. Very good observation.

 

AbselutlyNobody
9 years ago
But then the value of the dollar would fall so much that you could create the same situation that happened in Germany in the 20 and 30's except worst. 

[yota691]

Two experts debate 14th amendment and the debt limit

MSNBC

 

94,499 views  May 18, 2023  #Biden #Congress #debtlimit
The GOP is holding the economy hostage by refusing to raise the debt ceiling… again. Biden initially said he wouldn’t negotiate, but some legal experts say he still doesn’t have to, arguing the 14th Amendment requires the president to ignore the debt ceiling. Constitutional law experts Lawrence Tribe and Michael W. McConnell join Mehdi for a debate on whether Biden can and should ignore the debt ceiling through the 14th amendment.

[yota691]

What does the 14th Amendment say about the debt limit?

 

 

“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.3 days ago

[yota691]

What are constitutional debt limits imposed on?

 

 

The Constitution grants Congress the sole authority to borrow on behalf of the United States. It has delegated that authority to the Executive Branch but placed a ceiling, or limit, on the total amount of debt that can be outstanding at one time. Currently, the debt ceiling is slightly below $31.4 trillion.Feb 11, 2022

[yota691]

It amounts to 31.4 trillion dollars

The Biden and McCarthy meeting ended without an agreement to raise the debt ceiling

2023.05.23 - 08:42

 

Baghdad - people  

US President Joe Biden and House Speaker Kevin McCarthy held discussions yesterday, Monday, but they ended without reaching an agreement on how to raise the US government's debt ceiling of $ 31.4 trillion.  

  

 

  

The Democratic president and the most prominent Republican politician in Congress strived for progress to reach an agreement, and McCarthy pressured the White House to agree to federal spending cuts that Biden considered "harsh." Biden, on the other hand, called for new taxes on the wealthy, which Republicans reject.  

  

"I feel like we had a productive discussion. (But) we don't have a deal yet," McCarthy told reporters after an hour-long talks with Biden in the Oval Office. He added that negotiators from both sides would continue consultations.  

  

The two sides have only ten days to reach an agreement to raise the federal government's debt ceiling, otherwise it may default in an unprecedented way in paying obligations. Experts warn that this scenario could lead to a recession.  

  

Biden said before the meeting began that he was "optimistic" that some progress could be made. He noted that both sides need a bipartisan agreement to convince their bases of it.  

  

Any agreement to raise the debt ceiling must be ratified by both houses of Congress, so bipartisan support is required. Republicans control the House of Representatives, while Democrats control the Senate.  

  

Reuters