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Sovereign governments such as the United States can print new money. However, there's a statutory limit to the amount of paper currency that can be in circulation at any one time.
Ironically, there's no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds.
The government can also raise money through sales: For example, it could sell the Federal Reserve an option to purchase government property for $2 trillion. The Fed would then credit the proceeds to the government's checking account. Once Congress lifts the debt ceiling, the president could buy back the option for a dollar, or the option could simply expire in 90 days. And there are probably other ways that the Fed could achieve a similar result, by analogy to its actions during the 2008 financial crisis, when it made huge loans and purchases to bail out the financial sector.
If the president reasonably believes that the public debt will be put in question for either reason, Section 4 comes into play once again. His predicament is caused by the combination of statutes that authorize and limit what he can do: He must pay appropriated monies, but he may not print new currency and he may not float new debt. If this combination of contradictory commands would cause him to violate Section 4, then he has a constitutional duty to treat at least one of the laws as unconstitutional as applied to the current circumstances.
This would be like a statute that ordered the president to hire 50 new employees provided that none of them is a woman. The second requirement violates the Constitution, so the president can hire the 50 employees and ignore the discriminatory provision
Only proving one thing.
This whole mess is Made Up Drama by Obama to get Obama re-elected.
Originally posted by reassor
reply to post by beezzer
dont ask me - i used california congressman (democrat, law-maker) own interpretation.
but ill not argue about its meaning since i do not see anything there that would point me into his interpretation.
but as for political inuendo that is played right now - its just for show. And the default will not happen since there will be agreement reached just before deadline.
You are right, this all has been made up in an attempt to affect the 2012 election...but not by Obama...it is being created by the Republicans and the Tea Partiers. They are the only ones that can create this, since they control the House.
Originally posted by beezzer
reply to post by anon72
Watched it. Wonder if he meant Tea Party when he said that all people must be involved, not one faction.
I still say no. Nope. Nein. Uh-uh. To the debt ceiling being raised.
Originally posted by beezzer
So the 14th covers discretionary spending?
Originally posted by backinblack
reply to post by OutKast Searcher
Give it a rest....
Obama and the Dems had PLENTY of time to sort out the budget BEFORE the Reps took control..
I wonder why they waited, did they want an excuse to blame someone else for their inadequacies??