General Discussion

Nuclear Unicorn

(19,497 posts)

11. Only congress can encumber new debt and that hasn't happened since we have neither a budget or CR

Tue Oct 15, 2013, 06:56 AM

Oct 2013

How could Treasury issue bonds at the President's direction (Treasury being an executive department) and then go to Congress to authorize payment? That would leave the President absolutely vulnerable to being stiffed by Congress. They aren't obligated to pay those bonds and any resulting default on those bonds would be the President's exclusive fault. I don't know if it would mean impeachment but it would leave him irreversibly crippled for the remainder of his term.

I know Bush made plenty of appropriation requests but until Congress agrees there is no money to spend and since more useless wars are inevitable we shouldn't set a precedent.

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So Lets Say Obama Ignores the Debt Ceiling Come Thursday [View all] dballance Oct 2013 OP

It wouldn't avert a crisis, however. Gore1FL Oct 2013 #1

+1. n/t Laelth Oct 2013 #3

we have to have a deal before default arrives, I agree steve2470 Oct 2013 #4

Good Point. /nt dballance Oct 2013 #5

I see your point. However, in the long run it may strengthen our bonds and credit rating, if pampango Oct 2013 #13

I'd rather them eliminate the debt ceiling altogether after a sweeping 2014 election. Gore1FL Oct 2013 #19

That would put us back where we were in 1917. Igel Oct 2013 #35

that's the whole point. grantcart Oct 2013 #29

yes, they'd go somewhere and yes, spineless blob of orange cali Oct 2013 #2

Any bonds Obama unilaterally issued would be worthless. Nuclear Unicorn Oct 2013 #6

Obama wouldn't be issuing the bonds, Treasury would. dballance Oct 2013 #9

Only congress can encumber new debt and that hasn't happened since we have neither a budget or CR Nuclear Unicorn Oct 2013 #11

While the legal battle wages karadax Oct 2013 #14

I still think raising the debt limit should not be decided by the people who spent the money, it B Calm Oct 2013 #7

I agree, the old 1917 law has to be revised or repealed steve2470 Oct 2013 #8

I believe when that law was passed this sort of situation was never envisioned. dballance Oct 2013 #10

Denmark is the only other Democracy that has a debt ceiling. RC Oct 2013 #12

Congress hasn't even approved the spending. Yo_Mama Oct 2013 #16

Moot, huh? RC Oct 2013 #17

Because Congress hasn't approved the spending and Congress hasn't approved the debt limit increase Yo_Mama Oct 2013 #18

Maybe you ought to re-read my post again. RC Oct 2013 #20

Actually, no. BellaKos Oct 2013 #27

It hasn't, we still don't have a continuing resolution much less a budget Yo_Mama Oct 2013 #31

It's technical. BellaKos Oct 2013 #32

Mr. Market doesn't want those bonds Yo_Mama Oct 2013 #15

Yesterday Thom Hartmann said that the Feds could just forgive some of the debt klyon Oct 2013 #21

Mr. President order the fed to end this now. klyon Oct 2013 #22

It's better if it is ended legislatively. Gore1FL Oct 2013 #23

Legally the fed can do it, they do it all the time. klyon Oct 2013 #24

The long game dictates that Obama hold firm, honor debts and let impeachment drive the midterms. mattclearing Oct 2013 #25

It would cause a THIRD crisis warrenswil Oct 2013 #26

If the President doesn't do anything extraordinary, BellaKos Oct 2013 #28

Obama won't commit an impeachable offense. He will go through the Supreme Court berni_mccoy Oct 2013 #30

Let me ask you this Savannahmann Oct 2013 #33

Obama said that is something he will not do Lifelong Dem Oct 2013 #34

any extracurricular involvement AT ALL breaks the system tillikum Oct 2013 #36