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Uncle Joe

(58,463 posts)
Sat Oct 12, 2013, 02:45 PM Oct 2013

The Debt Limit Itself Should be unConstitutional

By not raising the debt limit and causing the nation to default on its' debt, the Congress will be in direct violation of the 14th Amendment and will have broken their oath to uphold and defend the Constitution of the United States.



http://en.wikipedia.org/wiki/Fourteenth_Amendment_to_the_United_States_Constitution

Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

(snip)

Section 4 confirmed the legitimacy of all U.S. public debt appropriated by the Congress. It also confirmed that neither the United States nor any state would pay for the loss of slaves or debts that had been incurred by the Confederacy. For example, during the Civil War several British and French banks had lent large sums of money to the Confederacy to support its war against the Union.[152] In Perry v. United States (1935), the Supreme Court ruled that under Section 4 voiding a United States bond "went beyond the congressional power."[153]

The debt-ceiling crisis in 2011 raised the question of what powers Section 4 gives to the President, an issue that remains unsettled.[154] Some, such as legal scholar Garrett Epps, fiscal expert Bruce Bartlett and Treasury Secretary Timothy Geithner, have argued that a debt ceiling may be unconstitutional and therefore void as long as it interferes with the duty of the government to pay interest on outstanding bonds and to make payments owed to pensioners (that is, Social Security recipients).[155][156] Legal analyst Jeffrey Rosen has argued that Section 4 gives the President unilateral authority to raise or ignore the national debt ceiling, and that if challenged the Supreme Court would likely rule in favor of expanded executive power or dismiss the case altogether for lack of standing.[157] Erwin Chemerinsky, professor and dean at University of California, Irvine School of Law, has argued that not even in a "dire financial emergency" could the President raise the debt ceiling as "there is no reasonable way to interpret the Constitution that [allows him to do so]".[158]



Having an arbitrary debt limit has nothing to do with Congress' power of the purse authority, if Congress believes the nation shouldn't spend any more or go further in to debt, then that's the way they should vote with each Congress and if the American People believe the nation is going too far in to debt, the remedy is the ballot box.

The key point being the Congress should vote one way or the other.

The debt limit is nothing but a political scheme which only serves to bolt the nation from one budgetary, financial crisis to another.

Holding the nation hostage, using the debt limit and unfavorable law as an excuse to not vote on a clean spending bill isn't using their power of the purse authority granted by the Constitution, it's extortion, plain and simple.

There are only two reasons that Boehner hasn't allowed a vote on a clean spending bill, he's afraid it would pass contrary to his assertions and/or he fears whatever vote they take will be politically unpopular.

By not allowing a vote on a clean spending bill, Boehner has allowed politics to trump the interests of the nation, an arbitrary debt limit only makes betraying the pubic trust all the easier to do.

The Supreme Court should rule the debt limit as being unConstitutional.




79 replies = new reply since forum marked as read
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The Debt Limit Itself Should be unConstitutional (Original Post) Uncle Joe Oct 2013 OP
Do you have to break it first? hootinholler Oct 2013 #1
Just the act of threatening not to raise the debt limit should be De Facto reason in litigating it. Uncle Joe Oct 2013 #2
P.S. By threatening not to raise it, they are in fact calling the debt in to question. Uncle Joe Oct 2013 #3
Whether to grant relief on a declaratory basis is discretionary with the court jberryhill Oct 2013 #4
I wondering on what basis it hasn't been? Uncle Joe Oct 2013 #5
On the basis of what? jberryhill Oct 2013 #6
Why hasn't anyone filed an action. n/t Uncle Joe Oct 2013 #7
You'll have to ask everyone who hasn't jberryhill Oct 2013 #9
It's a dumb law, true. Laelth Oct 2013 #8
Because currently the only purpose for the debt ceiling is in "creating question" or Uncle Joe Oct 2013 #10
The fact that the law is "useless" or "stupid" doesn't mean it's unconstitutional. Laelth Oct 2013 #14
Just, wow. Fla_Democrat Oct 2013 #64
It is rather astonishing isn't it and for anyone to believe Uncle Joe Oct 2013 #75
You are correct. Congress already allowed the spending via the budget Warpy Oct 2013 #11
Nonetheless, I believe the effort should be made. Uncle Joe Oct 2013 #13
Yeah! Feed that MIC! No limits, baby!!! Nuclear Unicorn Oct 2013 #12
In so far as limits are concerned Uncle Joe Oct 2013 #15
"Congress still controls the power of the purse with or without a debt ceiling" Nuclear Unicorn Oct 2013 #16
I assume it's like an overdraft limit. CJCRANE Oct 2013 #17
"Why would you set your overdraft limit lower than the amount you've already spent?" Nuclear Unicorn Oct 2013 #18
Surely the DC and the budget are normally passed at the same time? CJCRANE Oct 2013 #19
The DC is usually passed to carry spending past the current fiscal year under debate. Nuclear Unicorn Oct 2013 #22
The specific words in the economists paragrah is "unneeded uncertainty" Uncle Joe Oct 2013 #20
Emergency supplemetnal bills still go through congress Nuclear Unicorn Oct 2013 #24
The United States and Denmark are the only two constitutional nations that have debt ceilings Uncle Joe Oct 2013 #28
Our MIC and other nonsense grows because our pols pay-off their patrons Nuclear Unicorn Oct 2013 #29
Except the Democratic Party in general cares about the nation and the rule of law, Uncle Joe Oct 2013 #31
The 14A requires we pay our debts first Nuclear Unicorn Oct 2013 #32
If there isn't enough after paying debts and obligations to operate federal agencies, some Uncle Joe Oct 2013 #35
It seemslike your strongest argument isn't against the DC but debt itself. Nuclear Unicorn Oct 2013 #37
You cut off this part of my post Uncle Joe Oct 2013 #42
I cut it off because it's a hypothetical Nuclear Unicorn Oct 2013 #45
Why would a government shutdown, people getting thrown out of work and the economy being weakened Uncle Joe Oct 2013 #55
I don't see why we would take the blame for the DC not going up or the shutdown. Nuclear Unicorn Oct 2013 #63
We're not taking the blame, I was responding to you dismissng my hypothesis by not including Uncle Joe Oct 2013 #70
P.S. What is DC? n/t Uncle Joe Oct 2013 #23
DC = Debt Ceiling. Sorry, I should have used the parantheses thingy. Nuclear Unicorn Oct 2013 #25
That's cool, I should have figured it out. Uncle Joe Oct 2013 #26
Exactly. Cha Oct 2013 #21
Agreed. The constitution already says we are supposed to pay the bills. If they want to limit the jwirr Oct 2013 #27
Well, if we hit the debt ceiling then we'll see an instantnaeous balanced budget Nuclear Unicorn Oct 2013 #30
Except if there is nothing left over to pay the federal agencies, Uncle Joe Oct 2013 #33
If our interest payments exceed our receipts then we're already bankrupt Nuclear Unicorn Oct 2013 #34
The difference is you're proposing a hypothesis that may or may not occur, my OP is presenting Uncle Joe Oct 2013 #36
Except there won't be a default, just a balanced budget Nuclear Unicorn Oct 2013 #38
Which in turn causes bankruptcy across the nation and the globe which then decreases tax revenue Uncle Joe Oct 2013 #40
Granted, but that's not the same as a 14A violation. Nuclear Unicorn Oct 2013 #41
Why does it have to be done? Who decides that it has to be done? nt CJCRANE Oct 2013 #44
In all honesty I'm not sure which "it" you're referring to. Clarification would be appreciated. Nuclear Unicorn Oct 2013 #46
Cutting the military budget. CJCRANE Oct 2013 #48
Again, we WILL NOT default. We will service our debt from the taxes we still collect. Nuclear Unicorn Oct 2013 #50
You seem to be very sure about this. Do you have inside information? CJCRANE Oct 2013 #54
Our only unpaid oblgation, absent a new budget, is interest on current debt Nuclear Unicorn Oct 2013 #61
Interest on a debt, is not the same as the debt itself. CJCRANE Oct 2013 #66
"Interest on a debt, is not the same as a debt." Nuclear Unicorn Oct 2013 #67
There was a budget surplus just over 10 years ago. CJCRANE Oct 2013 #69
Sure it is by not raising the debt, Congress is raising question as to the United States ability Uncle Joe Oct 2013 #51
"the debt limit creates 'unnecessary uncertainty.'" Nuclear Unicorn Oct 2013 #65
There is no unrestrained spending. CJCRANE Oct 2013 #68
In regards to the 14th Amendment of the Constitution and threatening to not raise the debt limit Uncle Joe Oct 2013 #71
There should be no need for a debt limit... kentuck Oct 2013 #39
There is no 14th amendment violation FreeJoe Oct 2013 #43
That's not what the 14th Amendment says. Here's the relevant section: CJCRANE Oct 2013 #47
SS isn't a pension FreeJoe Oct 2013 #49
The implication is that *all debts* shall not be questioned. CJCRANE Oct 2013 #52
Regardless of how you define "debts" FreeJoe Oct 2013 #56
The broad meaning of "debt" is an unpaid obligation. CJCRANE Oct 2013 #59
Section 4 of the 14th Amendment MSMITH33156 Oct 2013 #53
I think that he has already... FreeJoe Oct 2013 #57
It was right in the initial post of this thread MSMITH33156 Oct 2013 #58
Even if you were correct with your narrow interpretation, which I don't agree with, the loss Uncle Joe Oct 2013 #60
I agree FreeJoe Oct 2013 #62
I agree with you, it is a really stupid idea but in this case Uncle Joe Oct 2013 #72
I wrote very similar remarks recently on this subject, Uncle Joe Samantha Oct 2013 #73
I absolutely agree, Samantha, the Republican House is violating their oath of office just by Uncle Joe Oct 2013 #74
I should have put the sarcasm indicator by that statement but I have a question for you Samantha Oct 2013 #76
I agree with you that the debt ceiling is unConstitutional, but Uncle Joe Oct 2013 #77
It seems to me that if AG Holder would render an opinion in line with your thinking ... GeorgeGist Oct 2013 #78
Perhaps but that could prove to be more problematic Uncle Joe Oct 2013 #79

Uncle Joe

(58,463 posts)
2. Just the act of threatening not to raise the debt limit should be De Facto reason in litigating it.
Sat Oct 12, 2013, 02:50 PM
Oct 2013

In this case one shouldn't have to wait until the ship hits the iceberg before changing course.

Extortion is against the law and that's what this is.

Uncle Joe

(58,463 posts)
3. P.S. By threatening not to raise it, they are in fact calling the debt in to question.
Sat Oct 12, 2013, 03:05 PM
Oct 2013

That violates the 14th Amendment.

 

jberryhill

(62,444 posts)
9. You'll have to ask everyone who hasn't
Sat Oct 12, 2013, 04:24 PM
Oct 2013

Personally, I've been busy with other things, but that's just me.

Laelth

(32,017 posts)
8. It's a dumb law, true.
Sat Oct 12, 2013, 04:11 PM
Oct 2013

It is also destructive and dangerous, but I see nothing about it that is necessarily unconstitutional.

That said, the SCOTUS is a strange institution, and I suppose they could find some way to rule that the debt ceiling law is unconstitutional, if they wanted to.



-Laelth

Uncle Joe

(58,463 posts)
10. Because currently the only purpose for the debt ceiling is in "creating question" or
Sat Oct 12, 2013, 04:47 PM
Oct 2013
"unneeded uncertainty" regarding the United States' ability to pay its' public debt.

This is implicit but when the Congress threatens to not raise the debt ceiling causing default and erosion of United States' creditworthiness it becomes an explicit violation of the 14th Amendment.



http://en.wikipedia.org/wiki/United_States_debt_ceiling

Default on financial obligations[edit]If the debt ceiling is not raised by the time extraordinary measures are exhausted, the government will be unable to pay its financial obligations. The United States has never reached this point. If extraordinary measures are exhausted, the executive branch has the authority to determine which obligations are paid and which are not.[21]

Failure to pay obligations has been characterized as a default; however, some have argued that the executive branch can choose to prioritize interest payments on bonds, which would avoid an immediate, direct default on sovereign debt. During the debt ceiling crisis in 2011, Treasury Secretary Timothy Geitner argued that prioritization of interest payments would not help since government expenditures would have needed to be cut by an unrealistic 40% if the debt ceiling is not raised. Also, a default on non-debt obligations would still undermine American creditworthiness according to at least one rating agency.[22] In 2011, the Treasury suggested that it could not prioritize certain types of expenditures because all expenditures are on equal footing under the law. In this view, when extraordinary measures are exhausted, no payments could be made at all and the United States would be in default on all of its obligations.[23] The CBO notes that prioritization would not avoid the technical definition found in Black's Law Dictionary where default is defined as “the failure to make a payment when due.”[24]

Controversy[edit]A vote to increase the debt ceiling is usually seen as a formality, needed to continue spending that has already been approved previously by Congress and the President. Earlier reports to Congress from experts have repeatedly said that the debt limit is an ineffective means to restrain the growth of debt.[6] James Surowiecki argues that the debt ceiling originally served a useful purpose. When introduced, the President had stronger authority to borrow and spend as he pleased; however, after 1974, Congress began passing comprehensive budget resolutions that specify exactly how much money the government can spend.[7] The apparent redundancy of the debt ceiling has led to suggestions that it should be abolished altogether.[25][26]

A January 2013 poll of a panel of highly regarded economists found that 84% agreed or strongly agreed that, since Congress already approves spending and taxation, "a separate debt ceiling that has to be increased periodically creates unneeded uncertainty and can potentially lead to worse fiscal outcomes." Only one member of the panel, Luigi Zingales, disagreed with the statement.[27]



Laelth

(32,017 posts)
14. The fact that the law is "useless" or "stupid" doesn't mean it's unconstitutional.
Sat Oct 12, 2013, 04:58 PM
Oct 2013

That said, the argument you present could very well serve as the basis for a SCOTUS ruling striking down the debt ceiling. As I said above, the SCOTUS is quite flexible and unpredictable.

-Laelth

Fla_Democrat

(2,547 posts)
64. Just, wow.
Sat Oct 12, 2013, 08:05 PM
Oct 2013

During the debt ceiling crisis in 2011, Treasury Secretary Timothy Geitner argued that prioritization of interest payments would not help since government expenditures would have needed to be cut by an unrealistic 40% if the debt ceiling is not raised.








Uncle Joe

(58,463 posts)
75. It is rather astonishing isn't it and for anyone to believe
Sat Oct 12, 2013, 10:55 PM
Oct 2013

this wouldn't impede the U.S. Government's ability to pay its' debt and obligations due to the economic turmoil and reduced tax revenue, they would have to be seriously deluding themselves

Warpy

(111,383 posts)
11. You are correct. Congress already allowed the spending via the budget
Sat Oct 12, 2013, 04:48 PM
Oct 2013

and that should be an end to it. This constant haggling over whether or not the executive branch has the ability to spend the money they already approved gives Congress power over the executive they were never meant to have.

The legislation is unconstitutional but we won't get it overturned while all those right wingers are on the bench.

Uncle Joe

(58,463 posts)
13. Nonetheless, I believe the effort should be made.
Sat Oct 12, 2013, 04:53 PM
Oct 2013


The legislation is unconstitutional but we won't get it overturned while all those right wingers are on the bench.



The stakes are too high and you never know once in a blue moon, even the right wing SC agrees with the Obama Administration as they did re: the Affordable Care Act.

Uncle Joe

(58,463 posts)
15. In so far as limits are concerned
Sat Oct 12, 2013, 05:01 PM
Oct 2013


http://en.wikipedia.org/wiki/United_States_debt_ceiling

Default on financial obligationsIf the debt ceiling is not raised by the time extraordinary measures are exhausted, the government will be unable to pay its financial obligations. The United States has never reached this point. If extraordinary measures are exhausted, the executive branch has the authority to determine which obligations are paid and which are not.

Failure to pay obligations has been characterized as a default; however, some have argued that the executive branch can choose to prioritize interest payments on bonds, which would avoid an immediate, direct default on sovereign debt. During the debt ceiling crisis in 2011, Treasury Secretary Timothy Geitner argued that prioritization of interest payments would not help since government expenditures would have needed to be cut by an unrealistic 40% if the debt ceiling is not raised. Also, a default on non-debt obligations would still undermine American creditworthiness according to at least one rating agency. In 2011, the Treasury suggested that it could not prioritize certain types of expenditures because all expenditures are on equal footing under the law. In this view, when extraordinary measures are exhausted, no payments could be made at all and the United States would be in default on all of its obligations. The CBO notes that prioritization would not avoid the technical definition found in Black's Law Dictionary where default is defined as “the failure to make a payment when due.”

ControversyA vote to increase the debt ceiling is usually seen as a formality, needed to continue spending that has already been approved previously by Congress and the President. Earlier reports to Congress from experts have repeatedly said that the debt limit is an ineffective means to restrain the growth of debt. James Surowiecki argues that the debt ceiling originally served a useful purpose. When introduced, the President had stronger authority to borrow and spend as he pleased; however, after 1974, Congress began passing comprehensive budget resolutions that specify exactly how much money the government can spend. The apparent redundancy of the debt ceiling has led to suggestions that it should be abolished altogether.

A January 2013 poll of a panel of highly regarded economists found that 84% agreed or strongly agreed that, since Congress already approves spending and taxation, "a separate debt ceiling that has to be increased periodically creates unneeded uncertainty and can potentially lead to worse fiscal outcomes." Only one member of the panel, Luigi Zingales, disagreed with the statement.



Having or taking away the debt ceiling has nothing to do with the MIC just ask George W. Bush.

Congress still controls the power of the purse with or without a debt ceiling and since 1974 they can determine how much money can be spent.



Nuclear Unicorn

(19,497 posts)
16. "Congress still controls the power of the purse with or without a debt ceiling"
Sat Oct 12, 2013, 05:18 PM
Oct 2013

I'm not trying to be mean but this honestly sounds like double-speak. The thread is about how bad the DC is supposed to be but then you go ahead and say it's immaterial to congress' power of the purse. If it's immaterial then leave it in place.

And I'm also not understanding what that stat about the 84% of economists is supposed to mean. Okay, so congress passes a law. If money was appropriated then implantation and enforcement would not be a budgetary issue. But if money isn't appropriated then it must be done with a new budget each year. Nothing can force congress to fund a law because then that would subvert congress' power of the purse.

Having or taking away the debt ceiling has nothing to do with the MIC just ask George W. Bush.


A president can't appropriate military spending on his own. Any increases were requests granted by congress. If such a request were to exceed the DC then congress would need a separate vote.

I want that double requirement there. Before we get dragged into the next war of choice(and we will) I want every politician knowing they will have to vote, not once, but twice to feed the Beast and then go back to their constituents burying their sons and daughters to explain why.

CJCRANE

(18,184 posts)
17. I assume it's like an overdraft limit.
Sat Oct 12, 2013, 05:27 PM
Oct 2013

But just imagine that you controlled both your spending and your overdraft limit.

Why would you set your overdraft limit lower than the amount you've already spent?

It just seems to me to be another example of the Repubs causing America to punch itself in the face.

Nuclear Unicorn

(19,497 posts)
18. "Why would you set your overdraft limit lower than the amount you've already spent?"
Sat Oct 12, 2013, 05:31 PM
Oct 2013

Except DC's are set prior to passing any budget that may exceed them.

CJCRANE

(18,184 posts)
19. Surely the DC and the budget are normally passed at the same time?
Sat Oct 12, 2013, 05:37 PM
Oct 2013

It wouldn't be a good idea to set your overdraft limit before you know what you want to or need to spend.

If they control both the limit and the spending then they should just decide what they want to spend, there's no need for a limit as the de facto limit is factored in.

Uncle Joe

(58,463 posts)
20. The specific words in the economists paragrah is "unneeded uncertainty"
Sat Oct 12, 2013, 05:38 PM
Oct 2013


A January 2013 poll of a panel of highly regarded economists found that 84% agreed or strongly agreed that, since Congress already approves spending and taxation, "a separate debt ceiling that has to be increased periodically creates unneeded uncertainty and can potentially lead to worse fiscal outcomes." Only one member of the panel, Luigi Zingales, disagreed with the statement.



This is the same as "calling in to question" of the United States's ability to pay it debt and obligations, which is in direct violation of the 14th Amendment.

Bush essentially fought two+ wars off the books.



http://www.sfgate.com/opinion/openforum/article/Stop-conducting-the-war-off-the-books-2624023.php

Bush has funded the war in Iraq and the broader "war on terror" almost entirely through "emergency supplemental" appropriations bills -- in other words, off the books. Ninety-three percent of the approximately $507 billion appropriated for the war in Iraq has come through such bills, and the president is reportedly set to ask for another $100 billion in "emergency" funds in February to cover costs.

By designating budget requests as "emergencies," the president and the former Republican-led Congresses placed them on a legislative fast-track. Congress had little opportunity to ask tough questions about how these funds were being spent, and little opportunity to strip out offending items -- including a litany of earmarks and other domestic spending that had nothing to do with the war.


Calling these funding requests "emergencies" also automatically exempts them from spending caps. The president can thus claim that more than $500 billion in recent spending is not part of the deficit. Nonsense.



The debt limit means little to nothing in regarding to feeding the MIC.

Nuclear Unicorn

(19,497 posts)
24. Emergency supplemetnal bills still go through congress
Sat Oct 12, 2013, 05:55 PM
Oct 2013

And any deficit spending adds to the debt thus exhausting the current DC that much more quickly.

As it should be.

Congress could easily have declined to ascent to a ESB or an increase to the DC and stopped Bush dead in his tracks. That would be TWO opportunities to stop his madness.

Uncle Joe

(58,463 posts)
28. The United States and Denmark are the only two constitutional nations that have debt ceilings
Sat Oct 12, 2013, 06:08 PM
Oct 2013


http://en.wikipedia.org/wiki/United_States_debt_ceiling

The United States (a constitutional republic) and Denmark (a constitutional monarchy) are the only constitutional countries to have legislative restrictions on the incurring of public debt. The Danish debt ceiling is, however, mainly a formality and follows the budgeting and expenditure process and provides ample latitude for unforeseen deficits. It has never created the periodic crises as has the American.[2]



Our MIC has grown regardless of any debt ceiling and every other nation seems to do well without it.

Nuclear Unicorn

(19,497 posts)
29. Our MIC and other nonsense grows because our pols pay-off their patrons
Sat Oct 12, 2013, 06:13 PM
Oct 2013

We should be using the DC and other parliamentary options to end the madness. That's what it's there for. We're just pissed because the Tea Party (TP) beat us to the punch.

Uncle Joe

(58,463 posts)
31. Except the Democratic Party in general cares about the nation and the rule of law,
Sat Oct 12, 2013, 06:24 PM
Oct 2013

we should not aspire to be as Republicans.



We should be using the DC and other parliamentary options to end the madness. That's what it's there for. We're just pissed because the Tea Party (TP) beat us to the punch.



If you mean by not raising the DC as the Tea Party promotes which in turn would create financial chaos, and undermine the 14th Amendment.

I don't care which party is promoting it.

The debt and obligations of the United States should never be called in to question.

Edit for P.S. The Republicans are paying a heavy political price for their actions.

Nuclear Unicorn

(19,497 posts)
32. The 14A requires we pay our debts first
Sat Oct 12, 2013, 06:36 PM
Oct 2013

Okay. We still collect tax receipts. We pay debt service first and then we can spend the rest on our federal agencies. In effect the 14A creates an instantaneous balanced budget if we hit the DC. I will grant that would be bad for the economy because it would immediately end $700 billion/year in federal deficit spending. That would be too much too soon.

However, it should be pointed out that if we accumulate too much debt then debt service -- interest only payments, no reduction of the principle -- would exceed annual tax receipts and that would put us in violation of the 14A. There is coming a time when these debates become moot. We need to go back to campaigning on the Clinton era budgets.

Uncle Joe

(58,463 posts)
35. If there isn't enough after paying debts and obligations to operate federal agencies, some
Sat Oct 12, 2013, 06:47 PM
Oct 2013

will be forced to close and we have essentially done as the Republicans in shutting down at least parts of the government, the economy will suffer and we will be politically hammered just as the Republicans are today, giving them an avenue back to power.

Your last paragraph proposes a hypothesis that may or may not occur, my OP is addressing an actual violation of the 14th Amendment that is taking place now.

Nuclear Unicorn

(19,497 posts)
37. It seemslike your strongest argument isn't against the DC but debt itself.
Sat Oct 12, 2013, 06:55 PM
Oct 2013
If there isn't enough after paying debts and obligations to operate federal agencies, some will be forced to close and we have essentially done as the Republicans in shutting down at least parts of the government, the economy will suffer


Be that as it may it's not a constitutional violation to see federal agencies close due to lack of funding.

What if I said we could raise federal spending on every agency without adding or cutting the DoD? That's what our debt is doing to us. We are spending a fifth of our tax revenue on debt service. That means past deficits are stealing from our ability to run our government today. It's like your credit card interest -- it's drawing income out of your wallet before you even slaved for the wages.

Uncle Joe

(58,463 posts)
42. You cut off this part of my post
Sat Oct 12, 2013, 07:14 PM
Oct 2013


If there isn't enough after paying debts and obligations to operate federal agencies, some
will be forced to close and we have essentially done as the Republicans in shutting down at least parts of the government, the economy will suffer and we will be politically hammered just as the Republicans are today, giving them an avenue back to power.



It is a constituional violation to cause question to be raised as to wether the United States will pay its' debt and obligations and that's what the Republicans are doing now in refusing to raise the debt ceiling.

The post to which you just shaded was in response to your assertion that we should adopt the tactics of the Tea Party.

As to this



What if I said we could raise federal spending on every agency without adding or cutting the DoD? That's what our debt is doing to us. We are spending a fifth of our tax revenue on debt service. That means past deficits are stealing from our ability to run our government today. It's like your credit card interest -- it's drawing income out of your wallet before you even slaved for the wages.



It demonstrates that the debt ceiling has/had no positive effect on spending.

It's the job of Congress to manage the budget and if they fall short, it's up to the American People to hold them accountable at the ballot box, and through various means of communication.

What the Congress should not be doing is undermining the full faith and credit of the United States Government, which is essentially what the Republican House is doing now.

Nuclear Unicorn

(19,497 posts)
45. I cut it off because it's a hypothetical
Sat Oct 12, 2013, 07:21 PM
Oct 2013

I don't necessarily agree with it either.

What the Congress should not be doing is undermining the full faith and credit of the United States Government, which is essentially what the Republican House is doing now.


I wish the Dems could cause people to question spending on the MIC that drives us deeper towards bankruptcy

Uncle Joe

(58,463 posts)
55. Why would a government shutdown, people getting thrown out of work and the economy being weakened
Sat Oct 12, 2013, 07:36 PM
Oct 2013

be viewed any differently by the American People if Democrats were doing it instead of Republicans?

If you're really against the out of whack spending toward the MIC it would seem to me, having Democrats in power would be for the most part beneficial towards those ends.

Nuclear Unicorn

(19,497 posts)
63. I don't see why we would take the blame for the DC not going up or the shutdown.
Sat Oct 12, 2013, 08:04 PM
Oct 2013

The GOP is owning it. All we need to do is GOTV.

Uncle Joe

(58,463 posts)
70. We're not taking the blame, I was responding to you dismissng my hypothesis by not including
Sat Oct 12, 2013, 08:45 PM
Oct 2013

the last part of my paragraph.

You had stated more or less that we should do as the Tea Party.




If there isn't enough after paying debts and obligations to operate federal agencies, some
will be forced to close and we have essentially done as the Republicans in shutting down at least parts of the government, the economy will suffer and we will be politically hammered just as the Republicans are today, giving them an avenue back to power.



This most certainly is the Republicans fault and my contention is it would be wrong for us to ever follow a similar path.




Cha

(297,818 posts)
21. Exactly.
Sat Oct 12, 2013, 05:38 PM
Oct 2013
By not raising the debt limit and causing the nation to default on its' debt, the Congress will be in direct violation of the 14th Amendment and will have broken their oath to uphold and defend the Constitution of the United States.

thanks Joe

jwirr

(39,215 posts)
27. Agreed. The constitution already says we are supposed to pay the bills. If they want to limit the
Sat Oct 12, 2013, 05:58 PM
Oct 2013

debt then do it while they are doing the spending. Congress should understand that if a spending bill is passed it gets paid.

Nuclear Unicorn

(19,497 posts)
30. Well, if we hit the debt ceiling then we'll see an instantnaeous balanced budget
Sat Oct 12, 2013, 06:18 PM
Oct 2013

We'll pay debt service first and then we can spend whatever is left over from the tax receipts on our federal agencies.

Uncle Joe

(58,463 posts)
33. Except if there is nothing left over to pay the federal agencies,
Sat Oct 12, 2013, 06:36 PM
Oct 2013

at least parts of the government will have to shut down.

How is this any different from what the Republicans are doing now and getting politically hammered for?

Uncle Joe

(58,463 posts)
36. The difference is you're proposing a hypothesis that may or may not occur, my OP is presenting
Sat Oct 12, 2013, 06:51 PM
Oct 2013

a violation of the 14th Amendment that's occurring now.

If we default because the Republicans refuse to raise the debt limit, then bankruptcy will occur much sooner across the nation and worldwide.

Nuclear Unicorn

(19,497 posts)
38. Except there won't be a default, just a balanced budget
Sat Oct 12, 2013, 06:57 PM
Oct 2013

Albeit one that pulls too much money from the economy too quickly.

Uncle Joe

(58,463 posts)
40. Which in turn causes bankruptcy across the nation and the globe which then decreases tax revenue
Sat Oct 12, 2013, 07:00 PM
Oct 2013

to the government making sustaining the debt and keeping a balanced budget even tougher.

Nuclear Unicorn

(19,497 posts)
41. Granted, but that's not the same as a 14A violation.
Sat Oct 12, 2013, 07:09 PM
Oct 2013

Although, I think it's a fair question to see which businesses would be hurt. We NEED military budget cuts. That means people making good wages in factories etc. will be losing their jobs, with an attending tax revenue loss and loss in the private sector economy -- but it still has to be done.

CJCRANE

(18,184 posts)
48. Cutting the military budget.
Sat Oct 12, 2013, 07:25 PM
Oct 2013

It may need to be done (in your or other people's opinion) but defaulting on debts seems to be a blunt and undemocratic way of doing it.

Nuclear Unicorn

(19,497 posts)
50. Again, we WILL NOT default. We will service our debt from the taxes we still collect.
Sat Oct 12, 2013, 07:28 PM
Oct 2013

We will pay debt service before we can spend on the federal agencies.

CJCRANE

(18,184 posts)
54. You seem to be very sure about this. Do you have inside information?
Sat Oct 12, 2013, 07:32 PM
Oct 2013

From my reading of the 14th, debts include all unpaid obligations.

Nuclear Unicorn

(19,497 posts)
61. Our only unpaid oblgation, absent a new budget, is interest on current debt
Sat Oct 12, 2013, 08:00 PM
Oct 2013

We have the tax receipts to pay for that debt service. If the DC does not go up the debt service gets paid but no federal agency can engage in deficit spending. Thus the 14A is not violated, though other effects will be felt, just not any unconstitutional ones.

CJCRANE

(18,184 posts)
66. Interest on a debt, is not the same as the debt itself.
Sat Oct 12, 2013, 08:10 PM
Oct 2013

The 14th amendment doesn't say "we'll just pay the interest on our debts".

It says:

"The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned".

The validity of the public debt...shall not be questioned.

That implies to me that it's not just about interest payments. The government has to prove that it's good to pay down the debt itself, not just scrape by by chipping away at the interest payments.

IMO the validity of the public debt will be questioned if the Repubs refuse to raise the debt ceiling.

Nuclear Unicorn

(19,497 posts)
67. "Interest on a debt, is not the same as a debt."
Sat Oct 12, 2013, 08:17 PM
Oct 2013
That implies to me that it's not just about interest payments. The government has to prove that it's good to pay down the debt itself, not just scrape by by chipping away at the interest payments.

IMO the validity of the public debt will be questioned if the Repubs refuse to raise the debt ceiling.


I'm sorry but that makes no sense. You're saying in order to prove we can pay our debt we have to raise the limit to the amount of debt we accrue. Getting new credit cards doesn't prove you can pay your old ones. It just puts you deeper in debt -- which actually makes it harder to pay down that debt.

When was the last time the US actually paid down principle on its debt? That would require a budget surplus, which hasn't happened since Clinton's budgets and then decades before that.

CJCRANE

(18,184 posts)
69. There was a budget surplus just over 10 years ago.
Sat Oct 12, 2013, 08:37 PM
Oct 2013

That's like yesterday in historical terms.

Creating an instant balanced budget is not necessary and will cause a lot more pain than paying down the deficit gradually as could easily be done with Clinton era tax levels.

Uncle Joe

(58,463 posts)
51. Sure it is by not raising the debt, Congress is raising question as to the United States ability
Sat Oct 12, 2013, 07:29 PM
Oct 2013

to pay its' debt and obligations.

The economists on my previous post to you upthread said the debt limit creates "unnecessary uncertainty."

So the debt limit itself creates "uncertainty and the Republicans refusal to raise the debt ceiling not only raises questions as to the "United States ability to pay its's debt and obligations, it becomes a self-fulfilling prophecy.

I believe the economic pain will be felt across the spectrum.

Hoover pretty much had a hands off approach when the Great Depression hit, FDR used government spending to help in revitalizing the economy, although it must be said WWII aided the American Economy as well, but FDR's New Deal policies were on the right track.

Not raising the debt ceiling and shutting down the government by whatever means, creating nothing but austerity especially in today's fragile economy can only send us backward to a much darker time.

Nuclear Unicorn

(19,497 posts)
65. "the debt limit creates 'unnecessary uncertainty.'"
Sat Oct 12, 2013, 08:10 PM
Oct 2013

That's more a political and economic argument, not a constitutional one. It could just as easily be argued that unrestrained spending leads to bankruptcy (and it does) ergo THAT is a 14A violation because it creates questions as to whether or not it can pay its debts.

Not raising the debt ceiling and shutting down the government by whatever means, creating nothing but austerity especially in today's fragile economy can only send us backward to a much darker time.


Granted, but that's a political/economic issue. GOTV 2014 is the answer.

CJCRANE

(18,184 posts)
68. There is no unrestrained spending.
Sat Oct 12, 2013, 08:25 PM
Oct 2013

And there was no question about whether the US could pay its debts until the tea partiers decided to make one.

Uncle Joe

(58,463 posts)
71. In regards to the 14th Amendment of the Constitution and threatening to not raise the debt limit
Sat Oct 12, 2013, 08:58 PM
Oct 2013

and thus "creating question" regarding U.S. ability to pay its' debt and obligation, is a constitutional one.

The political and economic aspects of the argument with 84% of economists state that it creates "unnecessary uncertainty" give support to legal contentions that the debt limit is unConstitutional as a violation of the 14th Amendment.

kentuck

(111,110 posts)
39. There should be no need for a debt limit...
Sat Oct 12, 2013, 06:57 PM
Oct 2013

Because once Congress approves a budget, they agree to increase the debt by what they raise and what they spend. It's a useless exercise, in my opinion.

FreeJoe

(1,039 posts)
43. There is no 14th amendment violation
Sat Oct 12, 2013, 07:17 PM
Oct 2013

The constitution requires that debts be paid. In this case, those debts are treasury bills, bonds, and such. It doesn't include SS payments, salaries, paying invoices, etc. Revenues more than cover the cost of servicing our debt, so not raising the debt limit doesn't violate the 14th amendment. It is stupid, harmful, disastrous, and a terrible idea, but it isn't a violation of the constitution.

CJCRANE

(18,184 posts)
47. That's not what the 14th Amendment says. Here's the relevant section:
Sat Oct 12, 2013, 07:23 PM
Oct 2013

"The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned".

FreeJoe

(1,039 posts)
49. SS isn't a pension
Sat Oct 12, 2013, 07:28 PM
Oct 2013

Pensions would include payments to retired federal workers. It would not include paying employees.

CJCRANE

(18,184 posts)
52. The implication is that *all debts* shall not be questioned.
Sat Oct 12, 2013, 07:30 PM
Oct 2013

It doesn't mention the specific debts that you cited as being the debts that are relevant.

FreeJoe

(1,039 posts)
56. Regardless of how you define "debts"
Sat Oct 12, 2013, 07:39 PM
Oct 2013

We are still bringing in enough income to pay those debts. It cannot plausibly argued that SNAP payments are debt payments. Or that federal salaries are debt payments. Or that Medicaid payments are debt payments.

Once again, I'm not trying to argue that failing to raise the debt limit is rational or that failing to spend money on anything other than debts is a good idea. I'm just saying that the constitution doesn't FORCE the government to borrow more money.

Honestly, the better argument is that the Impound Control Act, which requires that the executive branch spend appropriated funds is in direct conflict with the debt ceiling. Both are statues and not constitutional requirements, so it is not clear which would supersede the other. The executive would have to violate one or the other if the legislature doesn't change either.

CJCRANE

(18,184 posts)
59. The broad meaning of "debt" is an unpaid obligation.
Sat Oct 12, 2013, 07:47 PM
Oct 2013

You are conflating "debt payments" with "debts".

You are using a modern interpretation of "debt payments" based on modern banking terminology rather than the 18th Century American English meaning of "debts" IMO.

Disclaimer: I'm not a legal or constitutional scholar so you may be correct, but I do have some knowledge of English grammar which is what I'm basing my interpretation on.





MSMITH33156

(879 posts)
53. Section 4 of the 14th Amendment
Sat Oct 12, 2013, 07:32 PM
Oct 2013

is very vague. Your specific reading of it is certainly possible/plausible, but it depends on how narrowly or broadly you define "public debt" and what you think "questioning" it means. For example, you could argue exactly what you said, that "In this case, those debts are treasury bills, bonds, and such. It doesn't include SS payments, salaries, paying invoices, etc."...but then also say that the fact that we can't pay our other obligations of SS payments, salaries, invoices, etc. does bring into question the "validity of the public debt", since we basically become an untrustworthy lendee. Basically that if we pass on some obligations now, we are ripe to pass on other public debt obligations in the future, so passing on those obligations brings into question the validity of our debt.

This would all have to fight its way up to SCOTUS to be definitely determined.

From a political standpoint, Obama should come out on Tuesday and say that he believes there is a 14th Amendment remedy to the debt ceiling if Congress won't raise it. If he does that, then he will get his clean hike. Just like when W threatened to go to war in Iraq without Congress' authorization, they rushed to give it. If he basically threatens to take away a power they currently have, they won't allow him to do so and would rather rubber stamp what he wants.

I take it Obama has some sort of move in his back pocket here, a card he doesn't want to play yet. But there is no way they haven't considered a remedy in case the Republicans don't raise it. They know damn well they are dealing with crazy people.

FreeJoe

(1,039 posts)
57. I think that he has already...
Sat Oct 12, 2013, 07:42 PM
Oct 2013

said that the 14th amendment doesn't overrule the debt limit. I can't find any credible legal scholar claiming that it will.

MSMITH33156

(879 posts)
58. It was right in the initial post of this thread
Sat Oct 12, 2013, 07:43 PM
Oct 2013
Legal analyst Jeffrey Rosen has argued that Section 4 gives the President unilateral authority to raise or ignore the national debt ceiling, and that if challenged the Supreme Court would likely rule in favor of expanded executive power or dismiss the case altogether for lack of standing.


You are right in 2011 Obama said he wasn't going to use any sort of executive workaround, but he hasn't said anything this time, I don't believe. In 2011, he was also negotiating with them. His hardline stance has to be backed by some sort of plan B, doesn't it? There is no way he is thinking, "well, if they won't do it, just default."

EDIT: Never mind, saw that Carney came out last week and said those remedies were not in play.

Uncle Joe

(58,463 posts)
60. Even if you were correct with your narrow interpretation, which I don't agree with, the loss
Sat Oct 12, 2013, 07:47 PM
Oct 2013

of wages, damage to businesses and subsequent economic downturn would reduce tax revenue making it even more difficult for the government to honor "treasury bills, bonds and such."

Not to mention as the other posters stated, our nation's creditworthiness would be damaged resulting in higher interest rates on the debt.

Samantha

(9,314 posts)
73. I wrote very similar remarks recently on this subject, Uncle Joe
Sat Oct 12, 2013, 09:34 PM
Oct 2013
http://www.democraticunderground.com/10023812849

The Constitution trumps a Federal law which does not comport, and Second Liberty Bond Act of 1917, the so-called debt limit does conflict.

But here is another interesting thought: the onus of paying our bills is placed with the Congress. So if Congress fails to do so in light of that Constitutional directive, are not members of Congress failing to fulfill their duty, and since they swear in their oath of office to protect the Constitution, are they not violating their oath?

The whole conversation Republicans have relied upon blames President Obama for the shutdown and the possible failure to raise the debt limit. It is not his Constitutional responsibility to do so. It is their responsibility. So I think President Obama should step out and say it would be a breach of the Constitution for him to take action in this area when the Constitution clearly assigns that responsibility to them. Maybe some of them could even be impeached for failing to fulfill their responsibilities!!!

The debt limit was supposed to hold a President in check (financially) especially in a time of war from overspending. Another point I made in my thread was this one (to give you a smile):

"Importantly, the debt ceiling law was passed to keep the President of the United States "fiscally responsible" during wartime. Inasmuch as George W. Bush* kept 10.5 trillion dollars in debt off the general ledger and out of public sight during his two terms, he single-handedly proved by this action that this law is ineffective for the purpose for which it was intended! Repeal it now."

So I believe the Democrats should start screaming for a repeal of this Second Liberty Bond Act of 1917. Of course, Republicans would not go along with this, but it would be a great cause to publicly champion.

And of course, thank you for this thread!

Sam

Uncle Joe

(58,463 posts)
74. I absolutely agree, Samantha, the Republican House is violating their oath of office just by
Sat Oct 12, 2013, 09:43 PM
Oct 2013

threatening to not raise the debt ceiling.

They are actively creating an economic and trust crisis which "raises questions" in regards to the United States' ability to pay its' debt and obligations, even other nations are becoming more concerned.

Unfortunately I know of no law that allows for impeachment proceedings against a Congressperson.

The American People will have to make them pay at the ballot box and through various forms of communication; which I believe is happening with increased frequency and intensity.

Peace to you, Samantha.

Samantha

(9,314 posts)
76. I should have put the sarcasm indicator by that statement but I have a question for you
Sun Oct 13, 2013, 12:34 AM
Oct 2013

Some time ago, I was looking into treaties and found this quote:

http://www.lexrex.com/enlightened/AmericanIdeal/aspects...

&quot a) Treaties

The Constitution is the "supreme Law of the Land." It is controlling as to all officials of the three Branches of the Federal government--Executive, Legislative and Judicial--with regard to all of their pronouncements, actions, decisions, agreements and legislative Acts. Each of them is sworn, by oath of office, to support the Constitution only. To be valid, any treaty must be strictly in conformity to--free from any conflict with--the Constitution. A treaty is like a Federal law in this respect.

The Constitution is supreme over laws and treaties; it expressly states (Article VI, Section 2) that: "This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land . . ." This means that any such Law (Act of Congress) which violates the Constitution is automatically made null and void
to start with--nullified by the Constitution itself--and therefore cannot be a part of the "supreme Law of the Land.
"
This is also true as to treaties. " (emphasis added)

This discussion was inserted a thread located at http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=439&topic_id=1104652&mesg_id=1105631

So looking at the fact that the debt ceiling legislation (Second Liberty Bond Act of 1917) is not "in strict conformity to--free from any conflict with--the Constitution" -- why cannot one say it was automatically null and void?

The situation in front of us today clearly demonstrates the debt ceiling law is in conflict with the Constitution, doesn't it?

Sam

Uncle Joe

(58,463 posts)
77. I agree with you that the debt ceiling is unConstitutional, but
Sun Oct 13, 2013, 05:34 AM
Oct 2013

the people can't decide what's null and void in regards to the Constitution, it must be left to the Supreme Court whether I agree with them or not.

If the people decided they have the power to decide what's null and void, we would most definitely have chaos.



http://en.wikipedia.org/wiki/Judiciary_Act_of_1789

A clause granting the Supreme Court the power to issue writs of mandamus outside its appellate jurisdiction was declared unconstitutional by Marbury v. Madison (1803) (5 U.S. 137), one of the seminal cases in American law. The Supreme Court held that Section 13 of the Judiciary Act was unconstitutional because it purported to enlarge the original jurisdiction of the Supreme Court beyond that permitted by the Constitution. In Marbury, the Supreme Court ruled that Congress cannot pass laws that are contrary to the Constitution, and that it is the role of the judicial system to interpret what the Constitution permits. Thus, the Judiciary Act of 1789 was the first act of Congress to be partially invalidated by the Supreme Court.[10][11]






http://en.wikipedia.org/wiki/Judicial_review_in_the_United_States

The Constitution does not expressly provide that the federal judiciary has the power of judicial review. Rather, the power to declare laws unconstitutional has been deemed an implied power, derived from Article III and Article VI.[10]

The provisions relating to the federal judicial power in Article III state:

“ The judicial power of the United States, shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish. . . . The judicial power shall extend to all cases, in law and equity, arising under this Constitution, the laws of the United States, and treaties made, or which shall be made, under their authority. . . . In all cases affecting ambassadors, other public ministers and consuls, and those in which a state shall be party, the Supreme Court shall have original jurisdiction. In all the other cases before mentioned, the Supreme Court shall have appellate jurisdiction, both as to law and fact, with such exceptions, and under such regulations as the Congress shall make. ”

The Supremacy Clause of Article VI states:

“ This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding. . . . [A]ll executive and judicial Officers, both of the United States and of the several States, shall be bound by Oath or Affirmation, to support this Constitution. ”

The power of judicial review has been implied from these provisions based on the following reasoning. It is the inherent duty of the courts to determine the applicable law in any given case. The Supremacy Clause says "[t]his Constitution" is the "supreme law of the land." The Constitution therefore is the fundamental law of the United States. Federal statutes are the law of the land only when they are "made in pursuance" of the Constitution. State constitutions and statutes are valid only if they are consistent with the Constitution. Any law contrary to the Constitution is void. The federal judicial power extends to all cases "arising under this Constitution." As part of their inherent duty to determine the law, the federal courts have the duty to interpret and apply the Constitution and to decide whether a federal or state statute conflicts with the Constitution. All judges are bound to follow the Constitution. If there is a conflict, the federal courts have a duty to follow the Constitution and to treat the conflicting statute as unenforceable. The Supreme Court has final appellate jurisdiction in all cases arising under the Constitution, so the Supreme Court has the ultimate authority to decide whether statutes are consistent with the Constitution.



Joe

GeorgeGist

(25,324 posts)
78. It seems to me that if AG Holder would render an opinion in line with your thinking ...
Sun Oct 13, 2013, 08:55 AM
Oct 2013

the burden would be on the Republicans to challenge it at SCOTUS.

Meanwhile the President would be free to ignore the 'debt ceiling'.

Uncle Joe

(58,463 posts)
79. Perhaps but that could prove to be more problematic
Sun Oct 13, 2013, 02:44 PM
Oct 2013

in getting the desired result.

Should the SC rule narrowly that the Executive can't spend the necessary monies not appropriated to it by the legislative branch, we would be back at square one.

I believe the best strategy would be for the Obama Administration to directly challenge the Constitutionality of the debt ceiling to the SC based on it being a violation of the 14th Amendment.

There is plenty of economic, historic, legal and recorded ammunition for doing so, this would compel the SC to confront the Constitutionality of the issue head on.

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