Kent Pitman

Kent Pitman
Location
New England, USA
Title
Philosopher, Technologist, Writer
Bio
I've been using the net in various roles—technical, social, and political—for the last 30 years. I'm disappointed that most forums don't pay for good writing and I'm ever in search of forums that do. (I've not seen any Tippem money, that's for sure.) And I worry some that our posting here for free could one day put paid writers in Closed Salon out of work. See my personal home page for more about me.

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JUNE 29, 2011 9:14AM

Taking Charge of the Debt

Rate: 18 Flag

The buzz yesterday is that there may be another way to resolve the deadly game of chicken being foisted upon the American people by the Tea Party over the debt. It turns out that the answer was in plain sight all along.

The 14th Amendment, section 4, quite plainly reads:

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.

In effect, this says, that once a debt is owed by the United States, the United States will pay it, debt ceiling or not. Having a debt ceiling is really meaningless and unconstitutional once the debt has been incurred. So all the fuss about how we might not pay is nonsense.

This puts the Tea Party in the awkward position of having to go against the clear language of the Constitution in order to continue on what has been a quite obvious dance with potential destruction. President Obama needs only assert that this is his interpretation, and that's the end of the immediate crisis. It would eliminate the need to negotiate with the Republicans at all on the near-term question of debt.

That doesn't mean he shouldn't continue to make any prudent cuts in wasteful spending, but it does provide much-needed breathing room. Although the matter of the debt, if left unchecked, will become quite severe in coming years, some prominent economists have opined that the debt and the deficit are not our most pressing short-term problem and that the recession is a considerably greater short-term concern. As such, we need to do targeted investment spending, an economic “surge” if you will, to get America back to work and out of the current recession. We do not need more hastily-made, slash-and-burn tax cuts in the destabilizing way that Republicans have been trying to force in a transparent attempt to both cripple the middle class who might vote against them and get that crippling blamed on the Democrats.

As such, the President really must not go ahead with any concessions that he may have made simply out of fear that the Tea Party might force a default. Word has it that the Administration has been prepared to make some fairly radical cuts as part of bargaining for tax increases, but they now have more options and the President must adjust his strategy to acknowledge that. It is simply not appropriate for the President now to say, “well, we promised we'd get rid of this stuff and we're going to do it even if the Republicans don't do their part in allowing us to raise taxes on the rich.” Democrats have made too many unilateral concessions to the Republicans. They have the upper hand now and must use that advantage to restore balance.

What the President must do is to promise that if re-elected, he will simply allow the Bush tax cuts to expire, as he should have done already. These tax cuts were extended into the next presidential term, allowing the President to avoid making a decision on the matter for this election cycle. However, the American people need to know that they can trust the President to do the right thing in the future. It is a travesty that he allowed them to be extended at all, as it would not have required any votes by the Republicans. And he may have wished he wouldn't have to take a position on the matter. However, if he agrees that they would expire in his next term, it creates a powerful incentive for progressives not to jump ship on his re-election.

Personally, while I might expect President Obama to use the 14th Amendment to resolve this, I doubt he'll make such promises. Based on past performance, I must say that I think he seems way too comfortable in his self-made role as Compromiser-in-Chief, and way too little little concerned with the needs of the Democrats just now. I think that's because absent any credible challenge from another member of his party, he thinks party members have nowhere to run and may be relied upon to support him without his lifting a finger. In fact, at this point, to my great surprise, he seems single-mindedly and I think somewhat cynically concerned with currying favor only with Republicans.

Ironically, it's the Republicans who have been pushing this message lately: that President Obama is failing to lead. I think they're right on that isolated fact. But I think they imagine we'll all want to rush into their welcoming arms in disgust, and I'm less sure about that. Still, what we need is some credible alternative from within the Democratic Party.†

Now would be the time for Hillary Clinton to step forward, promising the Democratic leadership that President Obama has been failing to do. She's said she won't run, but she could change her mind. She's a patriot, after all.

She could promise that, if elected, she would allow the Bush tax cuts to really expire. Even just the debate that would result would be worth the effort, since Obama could then no longer take the support of his Democratic for granted, and he'd have to lean back to the left. The national debate would change in really substantive ways.

I think if Hillary ran, she would have a really excellent chance of prevailing. I think she would do us proud.


If you got value from this post, please "rate" it.

†Some would argue that this is the time for a third-party candidate. It's a romantic notion and has some appeal, but it's a terribly dangerous plan that could backfire horribly, bleeding off enough support from Democrats to give Republicans the upper hand. I'm not willing to suggest it. I think Hillary is a solid enough choice that if she could be convinced to run, that would just be the obviously right thing.

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I say we declare a JUBILEE YEAR and absolve all private debts for people making under $100,000 per year.
rw005g, I'm not sure if the suggestion is real or sarcastic. Taking it as a real suggestion, I'll just say that such would increase the sense that there as no penalty for not being financially prudent among the lower-end of the economic scale. I do think we should do some things for people down there, but I suggest things like eliminating a lot of taxes for people in that income range.
Obama and the Republicans kicked the can past the next presidential election on the Bush tax cuts.

The idea of reopening this now is insane.

Whichever party has the presidency can unilaterally eliminate them.

The entire mess is rather simple:

1. Spend as much as possible for the next 12 months, with as much frontloaded as possible.

2. Backload cuts.

3. The entire 'crisis' must be settled on reducing health care spending as a percentage of GDP.

To some extent, the surge in Afghanistan was simply a 'shovel ready' project. That plus the continuing savings from pulling out of Iraq makes a nice dent in required future spending cuts.

Libya is the future for our Generals. We only do cheap stuff, demand that our 'allies' go all in regarding political capital -- as well as act in a back up role that utilizes only our technological superiority.

But, first and foremost, push the Republicans including the Tea Baggers to OWN the inevitable cost cuts in health care. The only way to actually cut costs involve rationalization of the system which is part of the Democratic playbook.

They took the political hit for the first major attempt at rationalization. Force the Republicans to take the next one.
By the way, I'm not sure the 14th amendment as cited will really fix the problem. For reasons that are beyond the scope of this discussion.

However, it could prove useful political cover to eliminate a showdown that is inherently idiotic.

The desire for all politicians of all parties, including the Tea Baggers, is to defer the unpopular.

If it gains traction, it will be the Republicans that see the folly of going into 2012 on record as forcing cuts of highly popular social programs.
I am absolutely serious. The Hebrews and Romans did this like every 100 years or so. The British once did this, too.

When you have a group of financiers actively exploiting the poverty of the uber-poor, and forcing them into deeper poverty and despair, and when 40-50% consumer debt in America is due to emergency medical expenses alone (a VERY SMALL PORTION OF CONSUMER DEBT IS ACTUALLY DUE TO "fiscal irresponsibility), then this is, in my opinion, an EMINENTLY SENSIBLE THING TO DO.

The pervading belief in America that the indebtedness of the working classes is due to their "lack of fiscal responsibility" is a form of class-bias.
Consumer and lower-class debt, the vast majority of the time, is due to EXPLOITATION, not irresponsibility.

I come from a working, lower class family. The vast majority of the time my single mom used credit cards was for (a) her chemotheraphy [they cut her health insurance], (b) groceries, because she was laid off and food donations from the salvation army weren't sufficient and (c) clothes for her growing kids (not designer brands, and all basic, utility-necessary) and winter coats.

I am also the Chief Financial Education Instructor for my local Habitat for Humanity branch. I am very knowledgeable about this. While some of this is due to lack of knowledge, it is more about lack of knowledge about how they are being exploited, due to their poverty. Most middle class folks lack this knowledge of the games financiers play, too. The thing is, financiers tend to not play these games with the middle classes, because the middle classes can afford attorneys.
Kent…

…I get that you, and people who think as you do…will not flock to the Republican candidate, but there are plenty of people who will. I suspect the liberals with their unrelenting moaning about what Barak Obama is not doing…have managed to undermine his chances for re-election. I think it highly likely that the Republican candidate, whoever she might be, will probably unseat Obama next election. Having a primary fight for the Democratic candidate will probably do more to solidify the Democratic loss than anything else I can think of.

I hope Hillary waits until 2016 to run. Her candidacy in 2012 would be a disaster for the Democrats…just as the win I am predicting for the Republicans will more than likely be a disaster for our country and the world.

Democratic expectations have been absurdly unrealistic right from the beginning of the Obama presidency. He has gotten as much from the environment in which he has been working as possible…and a hell of a lot more than I expected him to get.

As for the debt, someone is going to have to blink or the “world economy” will become world chaos. Who eventually will blink is still up for grabs. But Obama is getting no backing whatever from his constituency…and the Republicans are getting tons from theirs…so if there is any handwriting on the wall…it don’t look good as far as I am concerned.
Well deserved EP for this well thought out post. It seems so simple.
rated with love
I hope you checked your parachute this morning. That's a long way up there to be looking down. Some fall when they don't expect it either. Could happen to you. I won't try to refute your statements as Rwoo5g is not going to have any problem handling you.

But this: "I'll just say that such would increase the sense that there as no penalty for not being financially prudent among the lower-end of the economic scale. I do think we should do some things for people down there'"

Down There ?!?!?! Really? Down there? You're a smart guy but that statement just plain stinks.
a.k.a., I'll jump to your comment and then return later to the others. The statement wasn't meant as any kind of judgment on people in that economic status. I didn't invent the directionality notion of upper, middle, and lower class. When I refer to the upper class, I am not saying I respect them more, nor when I refer to the lower class that I respect them less. But you can't believe in progressive taxation (and I do) without having nouns to refer to people in the circumstance of the different strata. See my articles Tax Policy and the Dewey Decimal System or Redistributing Burden before you peg me as excessively snooty or not caring about the plight of the downtrodden. You're seeing a problem where none exists. I'm not even failing to give credence to what RW005G is saying; I respect his opinion a great deal. I just wanted to make sure he was explicit so I could tell what he was saying.
[I think she would do us proud. ]....well, at least she could stir bloomer pudding with a limp cigar......or....could she.

The Constitution was written for We the People....not a Church, Corporation nor Government.

We the People can tell all those jack@sses and elephants that act like turnips to do what we the people want....and the president would have to sit there just like the rest of the turnips.

America is $57 trillion in debt....$100 trillion shortfall in social security and medicare and having a health insurance policy hanging around 305 million Americans with no way to pay for it ain't gonna solve a dang thing.

There is no where in the Constitution that Government is to take care of We the People....We the People is what spells Constitution.
Nick, if you know a reason the 14th amendment would not apply as stated, please feel encouraged to share it.

RW005G, I've looked at this topic but not in quite the way you suggest. (See the links I pointed a.k.a. to, for example, though there are others.) I agree with a lot of the substance of what you're saying about the problem description, but I'll have to ponder the dynamics of your suggestion awhile before I have a considered opinion. I hope you didn't infer anything ill of my question about sarcasm; the general form of your remark was ambiguous. I'll think more and perhaps have more to say later.

Frank, I'm not as convinced as you seem to be that blinking is required. I think the Democrats are capable of confronting the spending issue in an adult way. I just think it can't be done on the timetable the Republicans seem to want. It's odd to me because the Republicans are perfectly willing to say we can't pull troops out of this or that country for fear that they would be destabilized by too-rapid lack of support, but they won't make the same statement about pulling support out of our own country.

Poetess, thanks for the support!

mad, I confess I doubt your numbers. Can you cite sources so I can check them out? Also, the Constitution does mention the general welfare, and it is a legitimate topic of concern.
people like to pretend that the president is their personal proxy in the white house, it greatly magnifies the gravity of their words to say "the president must..."

american people do not live in a democracy, and any president will do what he thinks best for himself, confusing his career with the national welfare as they always do.

the point of a debt ceiling is to prevent politicians from buying votes by indebting generations to come. it is an attempt at intergenerational equity. it will fail, because politicians can not regulate themselves, and the people can not regulate them for lack of democracy.

politicians spend other people's money, and that is why the american economy is collapsing. citizen's spend their own money, one of the reasons democracy is better than elective aristocracy.

you may wish to break the debt ceiling, but your children will pay for your weakness.
Very interesting. There it is, right in the constitution that the tea-partiers hold so dear. You're right though. Obama will not play the constitution card, also right that he seems more interested in pleasing Repubs. I, as others, was disgusted when he caved on that, and truly lost faith in him that day. Extension of the "patriot" (gag me) act is another huge bugaboo for me.
I like the Hillary in the race scenario too.
Well done, thoughtful post.. as always Kent.
"As such, we need to do targeted investment spending, an economic “surge” if you will"
Rated for many things, but would have given this a thumbs up for the above sentence alone!
@Loomis... if you can, remember twelve years back, when there was a budget surplus and times were good. Rich were taxed fairly, and everyone thrived. Bush and company blew it for all. True, the deficit needs reigned in, but let's please remember where it (deficit) came from. The least all those screaming patriots can do is to acknowledge that the tax system is rigged in their favor, and volunteer to put it back the way it was under Clinton.
Greed is at the root of OUR problems.
All of Your points are excellently made and expressed as usual.

I would like to point to two:

"What the President must do is to promise that if re-elected, he will simply allow the Bush tax cuts to expire, as he should have done already. These tax cuts were extended into the next presidential term, allowing the President to avoid making a decision on the matter for this election cycle. However, the American people need to know that they can trust the President to do the right thing in the future. It is a travesty that he allowed them to be extended at all, as it would not have required any votes by the Republicans. And he may have wished he wouldn't have to take a position on the matter. However, if he agrees that they would expire in his next term, it creates a powerful incentive for progressives not to jump ship on his re-election.

What has obama done to make me believe that he would follow through with such an agreement/promise? His record on promises, speaks for itself. It seems to me, he will say ANYTHING to get elected, and then, TOTALLY, go back on his word.

These two sentences are so true:

"In fact, at this point, to my great surprise, he seems single-mindedly and I think somewhat cynically concerned with currying favor only with Republicans."

"Still, what we need is some credible alternative from within the Democratic Party,"

however I don't see much credibility in Hillary.

I WOULD vote for Kucinich, but "they'll" never allow him a fair shot at it.


-R-
We can't focus on the national level. If we are too concentrated on the federal level, the Establishment concentrates to destroy us. All politics is local, as tip o'neil once said. We need to control our local municipalities. This is KEY for progressives. The municipal, county and MAYBE, LATER, the state level.

Then, and only then, can we talk about FEDERAL influence.

Until then, we must be content with letting Rome burn, because there aint too much we can do about it. So be it.
First of all, as Bush v. Gore and other decisions of the Clarence Thomas court have demonstrated, what the Constitution says has little relevance as far as the way things actually get done in DC.

Secondly, I share your malaise about the conduct of the Obama administration entirely, and I certainly think you're spot on about Obama's pandering to the GOP.

Thirdly, I don't see how it's possible for Hillary to just take over and successfully run for President in 2012 unless Obama were to die or resign. Institutional arrangements in DC and the D party are simply too powerful to allow for a switch from Obama to Hillary in this election cycle, although some people put forward the outside chance of job swapping between Hillary and Biden.

Meanwhile, as I've said elsewhere, the fix is in. Expect the same tired theatrics that happened with the budget resolution "debate" earlier this year. The Rs go up to the very last second. Some fig leaf compromises are made on the part of the Ds, and establishment Ds and Rs combine to relegate the Tea Party-oids to the far corner of right field all by themselves.

The fact of the matter is, no one sees the horrible, deep divisions that are fracturing the Republican Party right now. We are witnessing the slow rebranding of the GOP as a more sensible, centrist wing.
The current debt ceiling statute was enacted in 1917 in conjunction with America’s entry into WWI. Prior to this law, Congress was more involved in the details of America’s accumulation of debt – authorizing loans or allowing the Treasury to issue specific types of debt instruments (bills, notes, bonds, etc.,).

The 14th Amendment had already been ratified at the time the “debt ceiling” law was enacted. This amendment was one of several passed in connection with the Civil War to address its causes and its consequences. The section to which your post refers effectively made the South reimburse, in part, the expenses to defeat them.

Hence, since 1917, one would presume the constitutionality of the “debt ceiling” statute with regards to the 14th Amendment would have crossed the minds of many. Since it has not been severely tested on this basis (to my knowledge), then one might also surmise that either many have concluded that it is constitutional or many have concluded that the consequences of litigating its constitutionality would have harmful effects. More on this below.

Before we get to this, however, let me suggest this reading from the Congressional Research Service:

http://assets.opencrs.com/rpts/RL31967_20100128.pdf .

Let me also refer you Article 1 Section 8 Clause 1 of the Constitution of these United States. Component parts of this part of our constitution are commonly known as the as the Taxing and Spending, General Welfare, and Uniformity Clauses.

You might also wish to familiarize yourself with Clauses 2, 5, 6, 11, 12, 13, and 18 (the last one) in this section. All of these enumerate the powers assigned to Congress associated with the creation or use of public funds, our armed forces, and war. A small amount of fact would help this debate.

The power of the purse lies with Congress, not with the President. Congress can exercise the powers granted under the aforementioned clauses in a way that would/could bitchslap this President so hard that his sainted mother would hurt.

So, let’s pretend that President Obama follows the offering of your post above and expands his presidential powers by declaring the “debt ceiling” unconstitutional and further deciding that all the fuss about how we pay it is nonsense. To add insult to injury, the president decides on his own, or asks Congress for legislation, to do some "targeted investment spending".

After doing the suggested reading, let me predict that Congress will react to these presidential decisions by informing Barack Obama exactly what language is clear in the Constitution, how it is not going to authorize the money the President needs to pay our obligations without its consent (14th Amendment notwithstanding), and just what timeline and charges will soon be in place for his impeachment.
The current debt ceiling statute was enacted in 1917 in conjunction with America’s entry into WWI. Prior to this law, Congress was more involved in the details of America’s accumulation of debt – authorizing loans or allowing the Treasury to issue specific types of debt instruments (bills, notes, bonds, etc.,).

The 14th Amendment had already been ratified at the time the “debt ceiling” law was enacted. This amendment was one of several passed in connection with the Civil War to address its causes and its consequences. The section to which your post refers effectively made the South reimburse, in part, the expenses to defeat them.

Hence, since 1917, one would presume the constitutionality of the “debt ceiling” statute with regards to the 14th Amendment would have crossed the minds of many. Since it has not been severely tested on this basis (to my knowledge), then one might also surmise that either many have concluded that it is constitutional or many have concluded that the consequences of litigating its constitutionality would have harmful effects. More on this below.

Before we get to this, however, let me suggest this reading from the Congressional Research Service:

http://assets.opencrs.com/rpts/RL31967_20100128.pdf .

Let me also refer you Article 1 Section 8 Clause 1 of the Constitution of these United States. Component parts of this part of our constitution are commonly known as the as the Taxing and Spending, General Welfare, and Uniformity Clauses.

You might also wish to familiarize yourself with Clauses 2, 5, 6, 11, 12, 13, and 18 (the last one) in this section. All of these enumerate the powers assigned to Congress associated with the creation or use of public funds, our armed forces, and war. A small amount of fact would help this debate.

The power of the purse lies with Congress, not with the President. Congress can exercise the powers granted under the aforementioned clauses in a way that would/could bitchslap this President so hard that his sainted mother would hurt.

So, let’s pretend that President Obama follows the offering of your post above and expands his presidential powers by declaring the “debt ceiling” unconstitutional and further deciding that all the fuss about how we pay it is nonsense. To add insult to injury, the president decides on his own, or asks Congress for legislation, to do some "targeted investment spending".

After doing the suggested reading, let me predict that Congress will react to these presidential decisions by informing Barack Obama exactly what language is clear in the Constitution, how it is not going to authorize the money the President needs to pay our obligations without its consent (14th Amendment notwithstanding), and just what timeline and charges will soon be in place for his impeachment.
al, the limit isn't a bad idea, but it's badly implemented. As long as it stands as a prohibition not of taking out loans but of paying loans we have taken out, it's a serious structural problem. I don't disagree that there's an issue of needing to draw things into line. But the Republicans want to do it too quickly. To make an analogy to weight loss, doctors routinely advise patients, even ones who are very, very heavy that they should not lose weight faster than a certain rate because there's only a certain rate at which you can lose without the balance of the overall function getting messed up. We can stop growing without cutting back, we can stop giving away money to people who don't need it, we can control expenses where they are being wasted, we can insist on better rates for medical care if we go to single-payer universal care, and all of these things can be done without the instantaneous slashing the Republicans want us to do. It matters how it's done.

tr ig, thanks for stopping in and for the support. And I think your response to al is correct about the source of the problem.

Tim, I always love hearing what people get drawn to in these. Thanks for calling out that phrase.

Mark, I think Obama has tried to meet all his promises. I now look to how specific his promises are. In many cases where he let people down, it was because they read more into what he said than what we thought he had said. There is a good quote by Orson Scott Card on this in his recent book Hidden Empire: “Politics is the art of simultaneously satisfying groups with conflicting goals. The traditional way of accomplishing this is to speak to the groups separately, lie, and then, if you are caught, deny it. You count on the voters to forget or lose interest or change their minds, and they almost always come through for you. In our time, between national television and the internet, contradictions are more easily caught, so not the best method of pleasing everyone is to promise nothing while seeming to promise everything.”
RW005G, the economics don't work to allow these fights to happen locally. The Republicans are employing a divide and conquer thing. And especially given that case law accepts precedent across jurisdiction, you can use the wins in one state against another. I think one can't ignore the federal issue. There are some other issues, too, but I'll try to write a blog post just on those. Making notes. Scribble, scribble.

Lefty, one has to behave as if the institutions of the Court matter, even though I agree it's compromised. I agree the Republican party is fragmenting, but they are skilled at asymmetric warfare and it's not clear that just because they're fragmented, they can't turn out a higher percentage of their base than the Dems, giving them still a fighting chance. And they can also cause a bunch of people annoyed at Obama to do the wrong thing. That will help them, too. I even believe those who say Bachmann could win if the Dems are not careful.

UncleChri, I agree with you the Constitutionality per se of the debt limit may have come up, but Constitutionality is not binary. Constitutionality is as much about the application of the rule, so it might be that only upon seeing how its effect is being interpreted that one understands it must go. As they say, “the Constitution is not a suicide pact” and at the point where people are starting to suggest that the implications of the wording of the Constitution is that we must do something incredibly foolish, the Court has an obligation to say there are other ways to interpret it—especially since, notwithstanding your stare decisis argument, a common sense reading of it can be construed to say so.
UncleChri, I don't disagree with you that there may be other politics that follows. I actually worked through the scenario where the Court decides to rule that the US is just screwed. That would be treason, IMO, but it would go to the Republican House to charge them and I don't think they would. So it's true it's a power play. But I think there are many ways that power play could run. I appreciate your sharing your thoughts on that.
I guess I'm talking more about progressive organizing in general. As for the federal gvt, I think its totally gone. America is like the Titanic after it struck the iceberg.

What we're doing now is basically arguing over who gets into what lifeboat. As of now, the rich are getting them all and the poor folk are being locked in steerage.

But, alas, the ship WILL sink...
Hey Kent. Uncle Cri made the point I intended re the constitutionality. You and he may be correct that a challenge to the debt ceiling legislation would succeed based on 14.4. But Obama can't just declare the debt ceiling unconstitutional. If the laws are such that Congress must authorize the debt ceiling increase, I don't see how the Treasury could just issue new bonds on Obama's say-so. Their legitimacy as legal tender would immediately be suspect which, among other things, would have a dampening effect on potential purchasers.

As for longer term solutions, I'll stick with the conventional lefty wisdom of at least letting the Bush tax cuts expire and slashing military spending. Infrastructure spending and green energy investment are also needed just for starters.
There is a limited menu of things a president could do. Because Soc Sec is fully funded, payments can be issued until that surplus is gone. Let's not even discuss the selling of public assets. The Treasury Dept could issue IOUs to cover interest payments, for what it's worth (and what they would be worth).
The money for specific appropriations would be gone.

The 4th clause of the 14th is somewhat vague, but it seems it could be cited to authorize the Treasury Sec to spend whatever funds they could manage to use, or whatever device can be considered constitutional to effect payment. This clause has only seen one day in the S Court, and that ruling supports this interpretation.

However, this once-only decision is not because, as Chris surmises, that litigating it may be harmful. It's simply hasn't has come up in the SC more than once. "Surmising" that a clause in the Constitution is constitutional sure is a waste of a "surmise." That should be obvious, yet...

This isn't about the power of Congress to spend, as these debt expenditures were already authorized. This is about whether Congress will fund the spending they already authorized.

The Treasury department does have the authority to spend on said debt and other expenses already authorized. That authority is better expressed in art 1, sec 9. Spending is authorized by appropriation, and the appropriations in question were already authorized. In other words, Congress, by authorizing the debt instruments, has agreed to pay them. This is a valid implication, and should be obvious.

This isn't about Congress' spending powers. This is about whether Congress will expand debt to enable the spending they have already authorized. Subtle, perhaps, but a true distinction.

It's not really about spending power, it's about politics. The GOP -- the Reigning Kings of Debt & Debt Ceiling Raising -- now want to be "responsible." What a joke. Haven't they done enough damage already?
Oops. I had a redundant paragraph above. Oh well. But folks, the Treasury has the authority to make those payments as they have already been authorized.
Here's the art 1 sec 9 clause that applies:
"No money shall be drawn from the treasury, but in consequence of appropriations made by law."
If the appropriations were made, and they were, then the Treasury is authorized to pay them.
Kent, You know the respect I hold for You and Your thoughts, but on the point of obama trying to keep his promises, we'll just have to agree to disagree.

To cite just one example; recess appointments and signing statements.

bush the lesser used them with reckless abandon -- obama acts as if he's never heard of them.
That only solves the problem of the money already spent. Money for say things that are not due isn't spent, yet. For example, an employee will get his check because he worked. If they close a department, layoff the employees, then the money is not due them and is therefore a saving.

The Dems while in charge of the House, which starts all spending, failed to pass a budget. They just threw billions of dollars at "targeted" BS that was just a waste.

The debt ceiling should not be raised. That will hold the feet to the fire of those in Congress. It will force them to grow a pair of balls and say this program is a must and this program is nice to have, and get rid of the nice programs. Congress will only changed when they are forced to, and maybe this will do it.
The debt ceiling has to be raised, Cat. There's no question about that. The Dog and Pony Show Republicans only want some concessions made before the inevitable is done. The irony is they're carping about the debt they are responsible for, almost entirely. The Dems aren't anything to be proud of, but the Republicans are a walking, whining bundle of absurdities.

Obama could, with whatever funds or devices available, spend on the already authorized objects, so Chris' he-could-be-impeached line is constitutionally ignorant. This isn't about Congress' spending power, as the budget funds are to be applied to the last, already authorized budget and servicing the accumulated debt the GOP has burdened us with. The Treasury has already been authorized to spend, it's merely a question of Congress funding that spending. Maybe pointing that out 3-4 times will allow it to sink in...
PJO

You are correct. They have already authorized the money to be spent. Problem is we don't have it. So you can either raise the debt limit or remove the authorization to spend the money. What ever money you don't spend is money you don't have to raise the debt limit for.

Will they have to raise the limit? As much as I hate it, yes. They can't get their collective heads out of their asses to cut spending, and it's not just one party, they all are to blame at some point. Do you ever remember them not raising the limit when it got hit? I don't. So why have it?

Have you ever said to one of your kids "okay, the next time you...". I think we all have in one form or another. Maybe it's time we treat Congress the same way and take away what they like most until they figure out how to live within their budget.

I'm sure that I'm also not the only one that has something come up and had to break out the credit card for an unexpected bill. When we do we pay it off and we don't plan on living month after month by adding to the credit card. Our government is the same way. There will be times when we have to break out the "government credit card" but we shouldn't be living on it.

Look at what is going on in Greece. I think they have hit their limit and are now paying one hell of an over limit fee. I don't know when we will have to pay the fee, but everybody has that point someplace. Frankly, I don't want to ever get to that point. What we can't do is wait until we get there then try to change the way the game is played.
Cat, we aren't Greece. We can never default on the debt unless Congress decides to. Unlike Greece, we can print more money.
Hasn't printing more money been tried in other places? How did that work out for them?

If printing money is an option then fire up the presses boys, we have a few trillion to print. Do you think Congress will authorize a trillion dollar note?
Rw005g, it's funny you should use the lifeboat metaphor. Often the model I use of Republican politics right now is that they're perceiving just that, and employing lifeboat ethics, fighting for a place on lifeboat, and that this is why they think it's acceptable to do what they're doing financially.

Abrawang, I imagine there will be additional posturing, so indeed I was probably oversimplifying somewhat. But it wasn't me that made up this interpretation in isolation. There are serious people who believe this approach, and Obama needs to explore it so he isn't forced into a bad situation. All I care is that he start to assert the obvious and sane truth that we are going to pay our debts, so the world currency markets don't panic. The IMF issued a pretty clear message yesterday, saying “The federal debt ceiling should be raised expeditiously to avoid a severe shock to the economy and world financial markets.” I think we have to just act on that, and sooner rather than later. There's nothing to say that our credit rating can't be dinged before the big crisis just to get our attention. I'd like not to wait for that.
Abrawang, also, I'm with you on “letting the Bush tax cuts expire and slashing military spending.” I liked the idea of adjusting the tax cuts to not hurt the poorest, though I'd have drawn the line at $100K. But given the lack of tactical advantage, I think letting them all expire would have been better than extending them since extending them leaves people look for other ways to hurt the lower income people anyway, and they don't get away free and clear either way.
Paul, you hit the nail on the head with “This isn't about the power of Congress to spend, as these debt expenditures were already authorized. This is about whether Congress will fund the spending they already authorized. ” It is for this reason alone that I'm confident that the 14th amendment really does apply. Treating the debt limit as limiting liability on past debts is the part of the interpretation that's nonsensical. There are certainly separate questions about what to do with future spending, but this is about past spending.
Mark, I'm almost glad Obama hasn't issued signing statements since I would expect him to pre-compromise rights to read certain wordings in a broader way that a future president might care to do.

As for appointments, yes, I think Obama hasn't been as aggressive in his choices or his tactics as he needs to be. His propensity to pre-compromise (some people say “offer unilateral concessions”) drives me nuts.

It may be that you and I see his carrying through of responsibility differently. Don't read from that any sense that I'm not terribly disappointed in him. I just think he has a way of viewing things that is different than mine, and to some degree it's my fault for reading his vague statements a certain way in the election. In retrospect, sometimes where he disappoints me, he actually said he was going to... A good reason to replace him with a more progressive Democrat, in my opinion, which is why I'm calling for Hillary (or anyone credible) to primary him.

And certainly no offense taken by the disagreement. I don't mind it when people disagree, as long as they're civil. I disagree often with Catnlion and UncleChri, but am happy to see that both are speaking on topic today without getting personal. They have points of view very different than mine, but I like mixing it up with different points of view when people stay on the issues and without the personal stuff.

At their best, political parties are not personal philosophies that one swears allegiance to but they are idea factories that generate suggestions for us all to consider. Because they come from different points of view, they may offer ways of looking at things we miss if we look only at our own habitual angle.
And that,Kent, is precisely, why I made the point agree to disagree, as I, definitely, think we re on the same page, just looking at things from different angles/perspectives.

Not to mention, the fact, that You and Your posts are completely devoid of delusion, and are fact-based, in stark contrast, to many others, here.
Catnlion, I see three really big ticket things on which money has been thrown away: The wars, which cost a lot and yielded little and will continue to be a cost far into the future in both health care and ongoing troop deployment. The tax breaks for the wealthy, which did not increase employment but were used by companies to buy back shares. Bailing out banks rather than individuals with money in those banks; I don't much like the way the FDIC is organized. I think it would be better to protect up to $100K for any person and tell people they were on their own for any money in banks above that line (perhaps with special exceptions for temporary transactional issues like being able to buffer cash directly earmarked for payroll in a safe place). Maybe there are others. I'd be willing to stretch to say that not doing single-payer universal health care will cost us in the end, and has been throwing money away. :) What were you thinking of that Obama has been throwing money away on? I'm guessing you have a different list.

Also, Cat, you say the debt ceiling should not be raised. Now, suppose our credit rating gets dinged and the cited reason is “people saying the debt ceiling should not be raised made us nervous.” Is there any financial responsibility of the people who said this? It it fair to ask the people who've been saying raise it to pay the extra money to cover additional interest that comes of a ruined credit rating directly attributable to foot dragging? Is it just free for you to suggest this very dangerous thing?
Regarding the wars, you reference, Kent, I cited this on a comment, elsewhere, today:

Study: US Wars Cost $4 Trillion

http://news.antiwar.com/2011/06/29/study-us-wars-cost-4-trillion-killed-258000/
Mark, indeed. And you perhaps recall my piece The Cost treating a different way of viewing that dollar cost.
The solution to our financial problems is not more complex than the balancing of a checkbook. Truly. It can be made to look complex, but so can anything if complexity and confusion is the goal.

We spend too much. No that's not quite right, we spend WAY too much. Admittedly, prioritizing how much we should spend, and on what, is a difficult decision making process. But the core issue is simple. We spend too much.

We do not EVER focus on revenue. Instead we focus on being envious and vindictive, and wrap that venom in a discussion disguised as being about revenue.

Simple math. If you're measuring dollars going out, balance that with dollars coming in. We tend to focus on dollars going out, and percentages coming in, minus discounts, rebates, exclusions, and exemptions.

If I tax you 10 percent on your income, I can anticipate what I'll get at the end of the year, or in quarterly payments, or in bi-weekly contributions. You can attach any terms you want. But 10% of a known number, is a known number.

On the other hand, if I tax you 35% on a known income, but allow for the deduction of the interest on your home mortgage, and the car you lease for business, and your medical expenses, and the meals you eat while on the road, and the tools you buy for work - I have no idea how much income I will receive from the 35% I taxed you.

This is simple, demonstrable, and repeatable.

Make the problem complex, and the solution will be unachievable. Make the problem simple, and you can find a solution that will work for the short, mid, and long term but the end of business next Friday.

It may not serve the political interests of some (or even most) but this is true. My apologies for stating the obvious.
Having heard a constitutional scholar on the radio, he said that Obama could merely call the debt limitation ceiling unconstitutional and authorize the Treasury Department to issue bonds as they see fit. It would then be up to the Supreme Court to rule on a suit filed by the Tea Party-oids. There is already a precedent going in this direction from the 1930s with FDR.

This would be a face saving approach for both Obama and the GOP idiots, as both could claim that the matter was taken out of their hands by the Supremes. However, I doubt if Obama and Eric Holder have the intestinal fortitude to do such a bold move.

And so, we will continue to play this sorry charade.
Kent,
Another element is the sanctity of contracts. The claim would be the spending was performed to avoid the US reneging on its contracts. That covers a broad scope of spending.

The reality is Obama has the weight of the options on his side. The conflicting purposes in the Constitution would give him the "tie goes to the runner" type of superior prerogative. The Tea Crackpot Congress already performed their act by legislating the expenditures, and would have to endure watching their efforts at showboating nutbucketry being marginalized.
I think this would greatly benefit Obama, and hang the Newtface on the GO-Tea, especially Cantor.
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.

rw005g- the clause "including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questions" is your actual problem that you conveniently overlooked.

The clarity and purpose of this 14th Admend. Section 4 only is clear about funding the entry into WWI. Contextually it funds veterans, and states that America must "invest" in rebuilding Europe. The root sentence had to be written in order to write a terse and airtight law. In actuality Sect. 4 is not, but a part of the whole. Each and every 14th Amend. clause must be taken together, and you did not do this- comprehend the full and reasoned meaning of this 1917 law. (Neither did I, but I will go to the site your recommend and read...that was stellar of you to do this.)

You lost your point as you made your point.

HClinton will not foresake Obama. She is his strength to the world, and her word is directly linked to Obama. Although, Obama has lost favor- resoundingly so with Independents, Left...he is not DONE.

I am almost certain he will lose 2012, but if he calls Republicans' bluff on Debt Ceiling he will certainly help the 12 Democractic Senetor/HofR seats up for re-election in 2012.

Obama is a Constitutional Professor. I'm not worried about his ability to decode our founding document. It is arrogant to assume his cache is fully depleted when he capitulated to Republicans for extending Bush Tax Breaks. Actually, that was clever because he eliminated this from the buffet of Republican discourse and constricted their rhetoric.

Democratic Minority Whips/leadership in HofR are very weak orators, and have not elevated the media blizt surrounding this showdown for budget redux via raising the debt limit.

Obama is in a bind. A terrible place because a minority (new Tea Party Legislators) have been calling the shots. The fact that the old guard Republicans have been mouth pieces for new members, and that they have not made the new members wade through years of brinning is a dual problem: Obama's and Congress.

You bring level rationality to the discourse, but...you failed to make one point, or even stay on point. (Hey, in my role as Mango Sherbert I am all over various points, too- trying to find a voice within my own persona is posing multiple problems. Eventually I'll work out a loop of reading, fact checking and blogging- but for now I'm trying to build stamina for writing.) I understand the desire to "remap" that which is not working. From our seats in front of our singular computer we (you and Mango Sherbert) think we have solutions, but the actuality is if the solutions had been that easy then Obama would not be in his current stand-off with Republicans.

Finally, Hillary will run 2016. That is a given.

Sincerely impressed by your layered and thoughtful argument, do continue.

Annie Shay
Jamie, your suggestion that you can't know the deductions people might take in the 35% case is not really true. In fact, while it's variable in the individual case, probably on the aggregate it's pretty predictable. Moreover, it's also true that the 10% case you claim is predictable is also not true. You can know after-the-fact what you're taking 10% of, but you can't know how sales will go. I'm not a fan of the home mortgage deduction but only because of how it's framed; if it were a “cost of basic housing” deduction, I'd support it, since then it would cover rent, and since I think there's no reason to favor people buying over people renting. A simpler tax code based on a smaller number of enumerated items and more clear language for what is business-related and what's not would be better, but the solution isn't to say to businesses or people that if you spend money just surviving, you have to pay tax on that. I'm not even 100% sure what your overall point was, so I don't know if this answers it. I think the problem is a bit more complex than you're letting on. I don't know therefore whether I'd agree with any derivative suggestions you might want to make going forward from there.

Lefty, you're right that at some point it comes down to a decision by human beings about what they're up for and what they are not. The Republicans have been all over Obama to “lead,” saying he's not been showing leadership. I do think they're right that he hangs back sometimes and doesn't lead where he could. But this is Constitutionally a place that calls for Congress to lead and I think their claim he should do so is self-serving. They want to blame what they realize they have to do on him, but it's got to be a Congressional choice, not an Executive one, to address the budget. On this narrow matter of merely saying “we're definitively going to pay our debt,” though, Obama should step forward and be more presidential.

Paul, I'm glad to hear you agreeing. I think the bottom line is that Obama does have options, as you put it. I come back to the notion that the Constitution is not a suicide pact. The President cannot protect and defend the Constitution if the only possible reading of it is to allow it to be dismantled in the way we're going.
Annie, thanks for the detailed run-down of your position. I'm going to just let your points stand as something to think about rather than try to assert that you're right or wrong. Many are matters of interpretation. I'll try to take a look in more detail at the other clauses of the 14th as you suggest to see why that should matter. If you want to outline here why that matters, feel free.