14th Amendment Section 4 of the Constitution "The validity of the public debt of the United States, authorized by law, including debts incurred for payment ... shall not be questioned."
Article One, Section 8, Clause 1 of the Constitution “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts …”
The Supreme Court found judicial review in the US Constitution by their interpretation of the Constitution in Marbury v. Madison (1803). In other words, the Court used “judicial review” to find “judicial review”.
The Executive and Legislative branches agreed the Supreme Court was the final interpreter of the Constitution. IMO, the Executive and Legislative branches have abdicated their responsibilities to make sure the bills and laws they write are Constitutional to the Supreme Court. Neither branch is careful because they always depend on the Court to correct their mistakes.
Breaching the Debt Ceiling would be a BIG MISTAKE!
- Slashed Government Services – cutting Social Security, Medicare, Medicaid, Defense Spending.
- High Interest Rates– higher borrowing cost both Government and private.
- Market Panic– Stock Market crash … Recession … Depression.
- A Run on Money Markets.
- Gold Sell-off.
- Long-term Effects - permanently downgrade U.S. debt, jeopardize the dollar's status as the world's reserve currency.
- Recession ... Depression. A Moody’s Analytics report released in September 2021 estimated that a default could have similar macroeconomic consequences to the Great Recession: a 4 percent Gross Domestic Product (GDP) decline, nearly 6 million lost jobs, and an unemployment rate of 9 percent. In addition, Moody’s predicted a $15 trillion loss in household wealth, with stocks dropping by as much as one-third (33.33%) at the depths of the selloff.
Republicans just don’t care.
They will do ANYTHING to hurt President Biden and Democrats. This includes hurting Republicans to hurt Democrats.
Think about Republican reactions to COVID. Republicans have fought mask requirements and vaccine mandates . More Republicans Died Than Democrats after COVID-19 Vaccines Came Out.
The new research points excess deaths during the pandemic were 76% higher among Republicans than Democrats in two states, Ohio and Florida.
“If you don’t do what I want, I will HURT myself.”
IMO Economics is part art and part science. Usually you can find an economist support either side of an issue. I don’t think anyone would find an economist saying breaching the debt ceiling is not a big deal.
Congressional Republicans want to cut spending, but can’t agree on what to cut:
- Cut Social Security.
- Cut Medicare.
- Cut Medicaid.
- Cut Non-Defense spending.
No Raising Taxes. (of course)
Biden should just do an Executive Order (EO)abolishing the Debit Ceiling. Write it like a Supreme Court opinion using:
- The 14th amendment section 4 “The validity of the public debt of the United States,” it declares, “shall not be questioned”
- Article One, Section 8, Clause 1 of the Constitution “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts …”
Write it like a Supreme Court Opinion.
Dare the Supreme Court to Invalidated the Executive Order(EO). Let the Court AND the Congressional Republicans own the Economic Depression. They think Democrats will get blamed for the chaos.
There will chaos …
I wouldn’t be surprised if the House Republicans impeach President Biden. There will probably be violence, Even with the Executive Order (EO), the economy will be disrupted because of the chaos.
I doubt whether Congress, States or any US Citizen would having standing to bring a case to court because the Executive Order (EO) doesn’t cause injury to anyone. The EO prevents injury to everyone.
With this radical Supreme Court, I have no idea what they would do.
Let’s hope it doesn’t get that far.
