Last week, leaders of the House democrats emerged from a caucus meeting with words of advice for Barack Obama: Invoke the Constitution to resolve the debt standoff.
If Congress can't reach a long-term deal on the debt limit increase by August 2, Obama should "sign an executive order invoking the 14th Amendment," said Assistant Minority Leader James Cyburn (D-S.C.).
They say we have a deal, but it’s not done until all the votes are counted. And from what I see and hear, neither side is particularly happy with the terms. If this doesn’t pass, many democrats will urge Obama to use the power some think may reside in the 14th Amendment.
Cyburm cited Section 4 of that amendment which 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.
Ratified on July 9, 1868, after the Civil War, Congress intended to confirm the legitimacy of all United States public debt appropriated by Congress, but that neither the federal government nor any state would pay for the loss of slaves or debts incurred by the Confederacy during the war. For example, several English and French banks had lent money to the South during the war, and the federal government made it clear they would not honor those debts.
With this in mind, I find it difficult to find where it says the president can unilaterally raise the debt limit. No one is questioning the debt. Everyone agrees we owe the money. The problem is finding enough money to pay the debt.
Clyburn went on to say, "I am convinced that whatever discussions about the legality of that can continue. But I believe that something like this will bring calm to the American people and will bring needed stability to our financial markets."
In other words: Do it first, ask questions about the legality of it later.
In addition, everyone seems to have forgotten that the bankers have more concern about the actual dollar amount of the debt than the debt ceiling itself. So even if Obama were to raise the debt ceiling on his own, the debt remains at the same level, and they will downgrade our rating anyway.
Obama has already expressed his doubts about his authority to raise the debt limit, however, House Democratic Caucus Chairman John Larson (D-Conn.) said "We just want to let him know that his Caucus is prepared to stand behind him" if Congress fails to pass a long-term deal.
"We have to have a fail-safe mechanism," Larson continued. "We believe that fail-safe mechanism is the 14th Amendment and the president of the United States."
If Obama opts for the 14th Amendment, not only will we find ourselves in a financial crisis, but a Constitutional crisis that could play out in one of two ways.
The democrats could stand behind their man while the republicans rant and rave and call for impeachment. Or, the far left, which doesn’t consider him progressive enough for their tastes, and the conservatives who consider him way too far left for them, could just leave him to his own devices and blame him for the new crisis. In the meantime, everyone calls for a democrat primary next year with Hilary Clinton running against him.
So when Obama said this whole crisis could bring down his presidency, he was absolutely right. He can read the writing on the wall as well as anyone else.
