4 ms·
To the people speculating the the US will default, and that the Treasury won't prioritize payments, I think you are, understandably, misdirected by the idea th
by hacknat 13y ago
To the people speculating the the US will default, and that the Treasury won't prioritize payments, I think you are, understandably, misdirected by the idea that Wall Street cares whether this is resolved legally or not. The market gives only the slightest of shits whether this is resolved legally.
The administration will make sure that we won't default if Congress can't act, and will most likely be dragged into court for doing so, where it will be determined that they acted illegally, but only on some technicality that nobody cares about and allows people to keep their money. Wall Street wants money, it doesn't care if your system has inner logic to get it.
- JumpCrisscross 13y ago"The market gives only the slightest of shits whether this is resolved legally." Yes - the market would prefer the executive overrule the legislature versus follow it over a cliff. But nobody wants to be left holding a Treasury later ruled illegally issued and thus not entitled to payment.
- hacknat 13y agoTotally.
- chris_mahan 13y agoBut a trillion dollar coin is currency, and if the US doesn't back its currency, then things will get real dark real fast.
- mullingitover 13y agoCongress fails to make the debt payments happen (unconstitutional), President just prints more money and makes the payments (pretty sure this is also unconstitutional), everyone goes home happy.
- mynameishere 13y agoUh, the president can't print money. What he is constitutionally required to do is pay US debts before anything else. That means social security, the military, the white house janitor, etc, all get paid 2nd (or 3rd, etc). We're a long way from an actual default.
- a3n 13y agoI'm guessing the Republicans are saying "Oh please, oh please," at the prospect of impeaching Obama for spending and borrowing without authorization. And they don't even have to win, they just need a forum that will be covered on the nightly/daily news to call Obama names and gum up his administration until the next election. I'm guessing the administration is saying "Oh please, oh please" at the prospect of default that they'll justifiably lay on the Republicans, and use to make the Reps look bad and gum up their lives until the next election. I'm guessing we're fucked.
- hacknat 13y agoUnless one of them happens to be a statesman, which I think Obama is.
- twoodfin 13y agoA statesman who voted against raising the debt limit in 2006 when it was politically convenient? Nobody's covering themselves in glory here.
- honestcoyote 13y agoHe voted against the debt limit as a political protest when there was no chance the debt limit increase would fail.
- twoodfin 13y agoHence "politically convenient". He now describes people who consider casting that same vote as "hostage takers". Statesmen should be a bit more judicious.
- pnathan 13y agoThat's my opinion as well. The Republican hardliners are echoing what I've heard many "normal citizens" say for quite a few years. I am sure they are ringing up the votes every time they declare no compromise. The Democrats, on the other hand, get to point at the Republicans and say, "They are screwing you!", and have that more or less be true. I am sure they are ringing up the votes every time they declare that the Republicans are screwing the popularion. Yeah, I'm not seeing how the parties have serious incentive to actually do their job.