The Speech Obama Could Give: 'The Constitution Forbids Default'

[n2doc]

GARRETT EPPS

...
As of midnight tonight, the government's statutory borrowing authority will be exhausted. If no measures are taken, the government must either default on its bonded indebtedness or on its obligations to seniors on Social Security, to unemployed workers dependent on federal insurance payments, and to American service personnel serving in areas of armed conflict.

For this reason, I have ordered that Secretary of the Treasury Timothy Geithner immediately begin issuing binding debt instruments on the world market sufficient to cover all the current obligations of the United States government, even in default of Congressional action to meet those obligations.

I take this action to fulfill the oath I took as president of the United States. The Constitution explicitly requires me, under my duty to "take care that the laws be faithfully executed," to meet and pay all debts of the United States.

This requirement is absolute. It is contained in Section Four of the Fourteenth Amendment, which directs, in no uncertain terms, that "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."

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http://www.theatlantic.com/politics/archive/2011/04/the-speech-obama-could-give-the-constitution-forbids-default/237977/

This would really make the t-baggers head's explode

[DCBob]

1. That's interesting.. wonder how that would play out..

maybe SCOTUS gets involved.

[Overseas]

2. K&R.

[jody]

3. SCOTUS would have an opportunity to decide whether the 14th Amendment was legally ratified.

Many articles discuss the question as did MacKinnon in her book "Only Words".

[Kablooie]

5. Oh that would be fun.

saying that ratification was forced by the north on the south.

Then states would not be bound to use law to incarcerate citizens,
the national debt could be questioned by anyone,
and insurrection leaders could hold office.

[unblock]

4. the question is, if the treasury can't borrow anymore (debt ceiling), how would it pay its debts?

after a few tricks and gimmicks, obama would have to order some emergency printing, done in a way without any more borrowing.

[former9thward]

6. The Constitution does not forbid default.

No one is questioning the "validity of the public debt". If the debt limit is reached nothing will really happen. The Treasury Secretary is permitted by law to use funds from the federal pension programs to pay debts and he has said he will do so. The federal government constantly has revenue coming in from hundreds of sources. The government will not halt. I think the Republicans should be called on their bluff and let the debt limit be reached.