Biden says not yet ready to invoke 14th Amendment to avoid debt default

[Yo_Mama_Been_Loggin]

WASHINGTON (Reuters) - President Joe Biden said on Friday he was not yet ready to invoke the 14th Amendment to avoid the United States defaulting on its debts as early as June 1, comments which for the first time suggested he has not ruled out the option.

"I've not gotten there yet," Biden said in an interview with MSNBC when asked about the possibility of invoking the amendment.

The divided U.S. Congress is running out of time to raise the federal government's $31.4 trillion debt ceiling, with the Treasury Department warning it could be unable to pay its bills as soon as June 1.

If Congress fails to act, some legal experts say Biden has another option to avert a crisis: Invoke the 14th Amendment to the U.S. Constitution to ensure the United States can continue to pay its bills.

https://www.yahoo.com/news/biden-says-not-yet-ready-035836794.html

[Matthew28]

1. Honestly

If the Republicans really do push us off the cliff then I hope Biden does it. He would at least show that he cares about America and its people. He could then hold it over the republicans heads going into the 2024 election.

[themaguffin]

5. I hope that he does it before. Force Rs to overtly work to stop payment.

[Buckeyeblue]

13. Agreed. I think it would be a good strategy.

The downside is there would still be concern that Republicans could win with SCOTUS and we would be back to the beginning.

I think Democrats should cut a deal with McCarthy that if he brings up a bill to extend the debt ceiling they will provide votes to reelect him Speaker if the crazies try to call for a new Speaker vote.

[themaguffin]

18. If it goes to SCOTUS or a coin has to be accepted by the Fed, whatever. Then those people have to

decide if they want to be the ones to blow up the world.

[drray23]

2. it is significant that he answered that way.

He did not dismiss it outright saying it was a crazy notion. He just said he has not gotten there yet. I interpret that as if all hell break loose , he would consider doing it.

[Cha]

8. Yes.. very Encouraging.. I and Millions

of Others would be directly Affected if the magats get their way and destroy the Economy by withholding our SS Checks and everything else the Government Does to PAY People!

[NYC Liberal]

10. Yep. There's no reason for him to pull the trigger now.

He would do it when he can say he was forced to act as a last resort.

[bucolic_frolic]

3. Republicans will challenge it in SCOTUS

Biden will only go there if there is no alternative, and getting to that point will allow financial markets globally to weigh in on what the GOP House is doing to us. If SCOTUS rejects 14th Amendment then SCOTUS will share the GOP blame. SCOTUS can't afford more bad publicity. I thinks our chances in this whole debt crisis are very good.

[JohnSJ]

4. I agree

[NickB79]

16. We know how Clarence Thomas will vote

Whatever his billionaire BFF says.

And a crash d economy might not be so good for his business.

[Walleye]

6. The news media should stop calling it a debt limit crisis

It is a Republican crash the economy crisis

[GPV]

14. Hear, hear!

[ProudMNDemocrat]

7. At least Joe has that option if Congress fails.

Joe is aware if he has to invoke the 14th Amendment if need be in order to NOT have the US default. Joe knows what it would mean if it were.

Of course, House Republicans will be PISSED that Joe ruined their plan to destroy the faith and credit of the US.

Beware the Dark Brandon to the rescue....?fit=1200%2C1694&quality=100&ssl=1

[Cha]

9. YAY!! Of course, Pres Biden is not

ready yet.. the magats need More Rope!

[Cha]

11. Not having the "Debt Ceiling Raised Cold also Unsettle..

the Financial Market".

Section Four of the amendment, adopted after the 1861-1865 Civil War, states that the "validity of the public debt of the United States ... shall not be questioned." But the clause has been largely unaddressed by the courts.

Some experts have suggested that Biden could invoke this amendment to raise the debt ceiling on his own if Congress does not act. That would almost certainly lead to prolonged legal wrangling, which could unsettle financial markets

TY!

[bullimiami]

12. Congress created a budget and approved that budget. This debt limit business is bullshit.

Their time to object to and adjust the budget is the next budget legislation.
This budget is law. Done.

Biden should just declare it unconstitutional.

[LetMyPeopleVote]

15. The 14th Amendment allows the President to take lawful actions to prevent default on our debt

Link to tweet

[onenote]

19. Some legal experts disagree. I think they have the better argument.

I know that there are legal experts that think it can be used, as well as those that say it cannot. My take is that the stronger case is that it cannot.

The relevant language is found in Section 4 of the 14th amendment: "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"

The purpose of the amendment was to prevent the repudiation of certain public debt as well as to prevent public debt being incurred for certain purposes.

The key word is "validity". Failing the raise the debt limit results in a default on certain obligations, but not the repudiation of them or a declaration that they are not valid debts. Put in more mundane terms, when one defaults on a home mortgage, the debt doesn't become invalid, and the home owner continues to owe the money; similarly, if you default on a car loan, the loan isn't declared invalid, it simply opens the owner to repossession (assuming the car is collateral on the loan). Debts incurred by the US are not secured by typical collateral, but that doesn't change things. Credit card debt generally isn't secured by collateral, but if you fail to pay your credit card debt, it isn't rendered invalid -- it remains a valid debt that the credit card company can pursue.

I think the courts would look at this language of the 14th and distinguish defaulting on debts from repudiating them and declaring them unlawful.

[LetMyPeopleVote]

20. I saw this analysis from Prof. Tribe that I found interestig

I still have my copy of Tribe on Constitutional law, second edition, in my library.
https://www.democraticunderground.com/1016351127

[David__77]

17. Better to do it sooner than later.

From both a political and economic perspective.