I'm not a scholar of constitutional/governmental issues, so I don't really have any specific insights to share on this. But if Congress fails to raise the debt limit, is there a way for the President to take executive action on this issue? I'm wondering what that path would look like, and what the ramifications would be.
I've been following this issue pretty closely, and it's clear that defaulting on the debt would be a serious problem. And what I'm seeing from Obama is a "best effort" to find workable solutions, including ones that would be very expensive to him and Democrats, in terms of political capital. But I also feel that he's negotiating from a position of confidence, and that he's willing to veto unacceptable solutions. Insisting on even a small percentage of tax increases or closing loopholes them is a poison pill for Republicans in Congress, given the corner they've backed themselves into, and Obama has been pretty assertive about keeping that on the table.
When I'm negotiating with others within a conflict arena, I never play all my cards. I do my best to stay civil and constructive even when I'm dealing with people I feel are malicious or untrustworthy. I choose not to escalate the tension, even when I feel that it would be an appropriate, in-kind response. I've found that reliably gives me a tactical edge, and that when I do play a card that I've been holding back, it has much more significant impact.
When dealing with manipulative/malicious people, they're generally quick to assess people who don't respond aggressively to their aggression as weak, and they usually drop their guard and overplay their hand. Staying calm and building allies is usually a good way to build popular support, allowing me to push back assertively when needed.
So I'm wondering if Obama's still holding a card, and how that would play out. If Congress fails to raise the debt limit, and he assesses that this is an issue that poses a clear danger to the US,
1-What could he do to address this by executive order?
and
2-What would the political consequences of that be?