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View Diary: Why The Debt Limit Fight Will Be A Political Face-Off With No Gimmicks Or Constitutional Crisis (208 comments)

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  •  Asset sales (2+ / 0-)
    Recommended by:
    Gary Norton, elwior

    The US has some $400 billion in gold, plus assorted other fairly liquid assets, such as the strategic oil reserve. Wouldn't there be some sort of requirement to sell those assets to pay the bills?

    Incidentally the mere threat of gold sales will freak out the Tea Party - those folks have all their investments in gold.

    Could Obama make a recision request to defer payment of some bills for 45 days? That would let him pick and choose who to pay which could be politically advantageous.

    •  recission not recision (0+ / 0-)

      Sorry for the typo

      •  rescission, not either of the other spellings (1+ / 0-)
        Recommended by:
        elwior

        got it right eventually...

        •  Executive Powers (0+ / 0-)

          I don't think the president has the power to pick and choose.  He could assume such powers if he chooses to go by Gary's argument but I think that would be inappropriate.  The president has no power to choose which appropriations to enact.  While I do agree that the president's approach so far is politically smart, I think in the end, he is constitutionally required to keep borrowing.  I also think the president believes so as well.  During the press conference, he said "They cannot do that." after detailing that congress commands him to spend and then says that he cannot pay.

          I think not raising the debt ceiling is an unlawful act by congress.  They literally cannot choose not to pay for the debt.  I believe the president must take it as implicit that congress provides sufficient borrowing power to meet any appropriations they command him to incur.  If congress wants to assert that it's appropriations are conditional and that the president is required to choose amongst appropriations, they must pass a bill to say so.  I think House Republicans are actually trying to do that already.

          I don't think picking and choosing is politically advantageous.  I think it is the goal of the House Republicans.  Their entire goal is to create a situation where the president cannot raise taxes and must cut spending and the president is the one who has to decide what gets cut and kept.  They want that weight to be the president's.  They are cowards.  Cut, Cap, and Balance was an attempt to create such a situation as well.  This is also why McConnell and Boehner are always saying the president needs to get serious on spending as opposed to simply asking for specific cuts.  The president is trying to avoid having to assume Congress' job while being constrained by Republicans to achieve their spending goals.

    •  Suppose he could sell things for which he has (2+ / 0-)
      Recommended by:
      elwior, MichaelNY

      authority under current law, but he won't for the reasons stated. That only delays the inevitable. The debt limit must be raised and putting it off doesn't achieve anything positive.

      Look, the limit has already been breached. We are not in default now only because of the "extraordinary" measures such as canceling the Treasury instruments issued to the Civil Service Retirement Fund. And what has that done but give the Republicans two more months to diddle the country.

      Further, affiant sayeth not.

      by Gary Norton on Mon Jan 14, 2013 at 09:01:07 PM PST

      [ Parent ]

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