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I guess when you focus on the physical act there is no difference between someone coming into your house and taking the fridge, or someone you hired coming into
by rsj_hn 5y ago
I guess when you focus on the physical act there is no difference between someone coming into your house and taking the fridge, or someone you hired coming into your house and taking the fridge. In both cases it is someone taking the fridge, so they must be the same right?
But when it comes to authority, the constitution requires issuing IOUs that come with the full faith and credit of the US goverment originate in an act of congress. This is because "full and faith and credit" is not something that the executive can do on its own.
The constitution also gives the executive the right to mint coinage, but only up to spending limits, except for a loophole for various collectible coins made out of platinum. These were not intended to circulate, or be deposited at the Federal Reserve in exchange for reserves, which is why I am skeptical about the legality of using this coin. It would also be a huge political embarrassment. But if they cannot deposit it for reserves, then no one is going to get their bill paid with the trillion dollar coin.
In the past, congress had to pass a bill for each debt issuance, which was too much work as debt issuance ramped up. Then congress went to a debt ceiling authorizing the issuing of debt up to a certain amount. This was intended to give the administration flexibility. For the same reason, many spending programs authorize payments "up to" some amount in order to support flexibility. Should the executive do this, you can be sure this flexibility would disappear and things would get much more painful for the executive.
Now if you don't see anything wrong with bypassing congressional authorization because conceptually writing an IOU on metal and paper is the same, then we fundamentally disagree. It's not about the act, but the authorization behind it.
- bryanlarsen 5y agoThis isn't bypassing congressional authorization -- it already has it. Congress has both authorized and forbidden the spending above the debt ceiling.