Obama already using 14th amendment option

[Agorism]

http://www.dailykos.com/story/2011/07/29/1000330/-Balkin:-There-will-be-no-default,-as-the-president-already-is-using-the-14th-Amendment?via=blog_1


Jack Balkin is Knight Professor of Constitutional Law at Yale Law School, and unintended proprietor of the best law blog. This week, he said President Obama already has effectively begun using the Fourteenth Amendment to prevent a government default.


Obama has already told bond holders that there will be no default on bonds. He plans to use existing revenues to pay off interest on the debt and other vested obligations. This is required by section 4 of the Fourteenth Amendment. Whatever he says in public, his lawyers have almost certainly told him something like that.
But that means less money for other government services, including social safety net programs like Medicare.

So we'll see a partial government shutdown once the government runs out of other options.

[nobody's_hero]

Lol. I think Obama needs to learn that 'validity' of the debt and 'sustainability' of the debt are not the same.



Okay, if you max out a few credit cards and you are $20,000 in debt, the credit card companies, as well as the law, are going to say that it is a valid debt.

They're not guaranteeing that you can ever pay it off, they're just saying that it exists.

[sailingaway]

It is not an option to raise the debt ceiling. There's only something like $20 billion per month in interest payments due and there is close to $200 billion in income each month. Paying the $20 never was going to need raising the debt ceiling. That is what Ron and Rand have been saying since Obama started calling for the sky to fall.