… or, how the debt ceiling crises can be solved today
As I write this, we are in a very precarious position. The credit rating of the US is on the brink of devaluation. Not because of some financial catastrophe, but because Congress has apparently lost the desire to craft a pragmatic compromise.
For whom does the Speaker speak?
Last week, both sides were talking, and working out details. Twice now, President Obama and John Boehner (two very intelligent and reasonable men) have crafted a deal that give the Republicans virtually all the deficit reduction that they asked for in January, in exchange for some measures to increase revenue in addition to their spending cuts.
And each time Boehner has taken the specifics to his caucus, the deal has been shouted down by Tea Party congressionals who insist on spending cuts and no revue increasing measures – even if they are not income taxes.
The bottom line is that Obama can deliver the Democrats on a compromise bill, but Boehner can’t deliver Republicans. You can only make a deal if you are willing to give up something to get what you want most. The Tea Party representatives don’t want to give up anything. They have essentially removed themselves from any compromise deal. And without them, Boehner doesn’t have a majority of Congressional votes behind him. He can only pass legislation by leaning more to the left and picking up some Democrats. But if he does that, he will be rejected as Speaker of the House by his own party. Boehner’s hands are tied.
So it’s the 11th hour – where are we now? Nowhere. Both parties are going through the motions of passing their own version of debt ceiling + deficit reduction bills; neither of which will pass because they contain the exact same proposals that have already been rejected. Where do we go from here.
The constitutional (i.e. “nuclear”) option
The debt ceiling has always gone through Congress because the constitution gives congress the “power of the purse”; they set budgets.
However, the Fourteenth Amendment says that “The validity of the public debt of the United States, authorized by law, including debts incurred for payments of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”
In other words, Congress cannot refuse to pay it’s debts, which is essentially what those opposed to raising the debt ceiling are proposing. The purpose of the clause was to insure that paying off debt could not be held hostage to political change. (Specifically, in the case of the Fourteenth Amendment the fear was that if the southern states ever controlled Congress after the Civil War, they might refuse to pay the Union debts.)
In our current state (which does seem to change daily), the Senate is ready to pass a compromise bill and the President is ready to sign one. But the House Republicans are divided and the Tea Party faction is obstinate. Only a bi-partisan bill can get out of the House, but to support such a bill would be political suicide for Boehner.
Obama has given Congress every chance to come up with a compromise solution to this issue. Since they cannot, and the Constitution requires Congress to pay all debts, it’s time for the President to step up and unilaterally raise the debt ceiling, invoking the Constitution. Congress would inevitably press the matter to the Supreme Court, but this is not a question that lends itself to a quick answer. It would take months, if not a year or more to debate and render an opinion. By that time, the point would be moot.
A Tea Party Victory
If this comes to pass, the Tea Party Republicans will walk away from this battle with nothing to show for their efforts, having turned down a four trillion dollar deficit cut proposed by Obama. Except they will be able to say that they didn’t vote to raise the debt ceiling and they didn’t vote to raise taxes. The really sad thing is – they will probably be more than happy with those prizes.


