As much as I hate to say it, Boehner’s inability to lead his own caucus has caused his blackmail of the American people to backfire, and it is now well within the realm of possibility that Republicans may push us over the cliff of default. If that happens, there are a few different things Obama may do, so lets take a look at them and at how this may effect Main Street Americans.
…SALE OF ASSETS
Treasury could consider selling off some of the government’s assets, including holdings of gold and mortgage-backed securities…
14TH AMENDMENT
Some legal scholars see a possible trump card for Obama in a provision of the Constitution that says the United States’ public debt "shall not be questioned."…
PRIORITIZING PAYMENTS
If the Treasury decides that neither an asset sale nor the use of the 14th Amendment are workable, it could look at delaying some payments to recipients of government benefits, government employees, outside contractors or other parties to ensure it has enough cash on hand to keep paying interest on its debts…
ENLISTING HELP OF THE FED
In a sign that financial authorities were coordinating closely on the unfolding debt drama, Geithner met on Friday with Federal Reserve Chairman Ben Bernanke and New York Federal Reserve Bank President William Dudley…
Inserted from <Reuters>
I’ve only given you a small taste of this article and encourage you to click through for the rest of it.
Sale of assets might be a short term help, at best, and the fire sale setting would minimize the value received.
The Constitution vests the Courts, not the Executive Branch, with determining Constitutional issues. Absent a court order to so so, Obama would be on thin ice. He could however invoke executive powers in a state of emergency. Either way, it would provoke a Constitutional crisis. SCOTUS has only four Justices, so the five fascists at SCROTUS would decide the issue. That is not a pleasant prospect.
In prioritizing payments, Obama should stop all federal funds to states the majority of whose Reps and Senators manufactured this crisis, blackmailed America, and will have caused the default, including the salaries and perques of all those politicians and their staffs.
For the Fed to borrow on behalf of the government would be conducting fiscal policy, and they are legally confined to monetary policy only. That is a bright line we do not want to cross.
Melissa Harris-Perry discusses the latest developments and how a default will effect us individually with Ezra Klein.
Visit msnbc.com for breaking news, world news, and news about the economy
To say it will be ugly is an understatement.
I most sincerely hope that this will not come to pass, but if it does, I hope this has left you a bit better informed.
35 Responses to “If Republicans Push Us Over the Cliff”
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The first thing that should be stopped is the slaaries of Representatives and Senators. I could live with that and would actually cheer. Stop funding their offices. Turn off their air conditioning. Close their gym. do they really need these things? They don’t think we need food or heat or anything else.
Why Senators? I’m with you on the rest of it. Also, suspend their health insurance and retirement plans.
I agree with both of you! 😆
So do I, but I think we should limit it to the Republican Representatives and Senators who are committing this blackmail.
Oops! Typing too fast so early in the morning. “salaries”
Hey! I’m typo king around here! 😉
Who owns the national debt
If you think we are going to throw China or England or Japan or the banking bondholders under the light rail train before we throw the aged the sick the disabled and federal retirees. I think that we have a few months of eating cat food ahead of us.
Congress will never stop their own salaries remember last year when they were swearing in the tea party crackpots and the one who was whining because his health care wasn’t immediately kicking in?
Fuck ’em all. They are all on opposite wings of the same party and they do not give one good god damn about the American people, they care about the ones that made them rich. You do know for example that Boehners personal net wealth in 2009 was 8 million. which was 3 Million more than Obama’s. they got theirs ergo there is no crisis except the one the speech writers declare
No Mark. It will hit pensions, IRAs, etc., very hard. It is the treasury that decides which bills to pay.
The only good that’s going to come out of it is that the Tea Party grassroots voter is going to get an education in hardship along with the rest of us. Maybe next time, if there is a next time, they won’t vote against their own best interests. Maybe not. 👿
I have a feeling that they are so unwilling to compromise, that they again will vote against their own interest. Either that, or they’re just stupid. 😉
I think they are angry and afraid, making them apt victims for Republican manipulation.
I HATE option 3! Obama ought to slap an immediate surcharge on all who made over $1 million last year, and DOUBLE on incomes from hedge fund managers and pampered. useless trust-funders like Grover Norquist!
I totally agree, Pope Jack!
I don’t think he has that power. Only Congress can levy taxes.
Pretty much like a deadly game of chicken with two cars headed directly toward each other. But to appreciate the full impact of what’s really going on, you need to understand a very key point: one of the two cars doesn’t have a driver in it.
Now THAT’S going to change everything.
(Heard a similar analogy somewhere)
Bingo!
Mortgage backed securities? Does anyone really still use those? If they do they’re dumber than I thought.
All the ones that were sold in the run up to the Republican recession are still there.
Cut their benefits, perks, retirements, health plans, make them pay (and live off of) Social Security. Let them share the sacrifice.
Ha, live of SS – that’s a good one! 😆 They’d die on $13K a year which would be kinda fun.
Anyone who fails to negotiate and find a common ground does not belong in the position to make decisions for the running of our Country.
Wholeheartedly agreed! Welcome Grace! They are being completely irresponsible in their duty to get a compromise done (apparently, to the teabaggers, compromise is a non existent word) and pass a clean debt ceiling bill like we’d done thousands of times in the past!
Amen to that!
As others have said above, lets cut off all of their salaries, insurance etc. It would be even better if we could target the Republicans. If the worst should come to pass, I think all who vote to let us default on our debts (meaning all those damn bastardly Republicans) should be considered traitors to the country. I read somewhere that the debt ceiling was raised 4 times when that asshole, George W Bush, was in charge but now that it is a Democrat in office they want to stop it from being raised. Great example of putting your party ahead of your country.
Actually it was raised, in order:
Reagan – 17 times
Bush I -5 times
Clinton – 4 times
Bush II – 7 times
All clean bills without a peep from anyone. But when a Dem president does it, there are conditions attached.
Thanks Lisa.
Welcome Rich. 🙂
I agree on limiting it to Republicans. That’s exactly what I said in the article. But they are not traitors. The Constitution defined treason such that it can only be charged when war had been declared. The are guilty of sedition.
Watching this debacle unfold is like watching a train wreck— the spoiled arrogant tea baggers , who display no judgment , no ability to compromise ,not a bit of cooperative in them — The selfish grandiosity of the bunch makes me gag– Most of those fools have most likely never held a real job—Yes cut their paychecks , they are not doing the job they are paid for when they act out of their own selfish over inflated egos- with complete disregard for the country , the wishes of the people they are supposed to be representing—- They will drag this country down .. we are already a laughing stock in the world-
Amen, Phyllis.
These stupid tea baggers don’t understand the word compromise (as many have pointed out here) and that will be their doom. EVERYTHING in Washington is a compromise and the sooner they realize that, the better off they will be or they’ll be out of office (even better!). If the president has to use the 14th amendment and deal with the shit later through SCOTUS, too bad. At least we won’t default and the markets won’t tumble into oblivion.
Exactly, Lisa.
Agree!!! You are so rigtht !
🙂
Hi Tom Cat,
One thing that would give the United States more money is if all the elected Government people had their salaries taken away when they refuse to do what’s right for the American people! I know that can’t happen but wouldn’t it be terrific!
Welcome Becky. 🙂
If you can figure out how, you have my support!