Analyst: Obama Will Raise The Debt Ceiling On His Own And Worry About The Legal Consequences Later

[FarCenter]

There was the "trillion dollar coin" idea, where the government mints itself out of trouble via an arcane bullion law.

Then there was the 14th Amendment option. Here, the government would have to take a modern interpretation on the Civil War-era amendment about the "validity of the public debt of the United States," and surely face legal action.

Now as the two parties gear up for another debt ceiling bout, Greg Valliere at Potomac Research thinks Obama may be coming around to the idea of acting on his own. Valliere writes to clients:

Obama is not shy about using executive authority, and he surely has heard from Constitutional scholars who believe he has the authority to raise the debt ceiling on his own. (Bill Clinton urged Obama to take this approach in the summer of 2011.) Fearless forecast: if Treasury is out of money in early November and a default looks possible, Obama will simply raise the debt ceiling. He'll face instant litigation, but that wouldn't be resolved for months.

Read more: http://www.businessinsider.com/fearless-forecast-debt-ceiling-2013-9

In 2011, doing this would have created a 2012 election issue.

Since Obama will not be running again, it is a real possibility.

[Recursion]

1. Nah. Not really his style

Obama will find a way to make Boehner ask him nicely. He really is preternaturally gifted at that.

[Skraxx]

4. His style would be to keep this in his back pocket as last resort

But you're right, seeing how he operates, I wouldn't be surprised if he gets Boner to cave.

[Autumn]

5. Boehner and his sleazy crew do nothing "nicely."

Boehner and his sleazy crew will insist on cuts that hurt the vulnerable to raise the debt limit. Question is, will Obama deal with them?Dealing is not asking nicely. I think this is the best way Obama can deal with this.

As an aside. I do enjoy the pictures you post of India and look forward to seeing more.

[joshcryer]

7. indeed

if he does it one will have to ask why he didn't do it sooner

[lamp_shade]

2. Sounds good to me. n/t

[Drale]

3. Good

[Raven]

6. That would be interesting. The Repubs

would then have to explain why they are going to court to avoid paying the debts they have themselves incurred. And, of course, we'd all want to know how they plan to pay for the lawyers and court costs Nice!

[CTyankee]

8. OK, my fearless forcast. He will do it in a New York minute...

he will save this country and the world from a global financial diisaster. The republicans will stew in their own juice. If anything, it will drive them apart and it will drive them crazy. They'll be seen for the clueless, uncaring band of criminals that they are. But PBO will have the American people on his side. There will be real fallout in 2014 and it won't be pretty for the repubs...

[joeybee12]

9. I don't think he will, but I'd certainly like to see him do it...nt

[Zorra]

10. It's a matter of National Security; an EO is necessary and appropriate. Republicans are

clearly playing deadly politics in this matter, and their actions are contrary to the continued safety and security of the people of the US. Essentially, this makes republicans domestic enemies of our nation.

By issuing an EO, the President will be doing exactly what he is supposed to be doing as Commander in Chief, and I'll be behind him 100%.

[winter is coming]

11. Seems unlikely. I can see it happening *after* we've run out of time, if the market

is starting to tank spectacularly, but I doubt he'd do it immediately after the deadline.

[Arkana]

13. Actually, you're probably closer to the truth.

If a government shutdown drags on, I could see him going "Fuck it" and just doing it.

[Arkana]

12. I want to see him do this.

It'd make the right's heads explode--and what's more, it has the added merit of being the right thing to do.

[Jim Lane]

14. The need for a continuing resolution is more of a problem.

People talk about the government paying for obligations incurred. The immediate problem is that most of those obligations end next week. Neither the platinum coin nor the Fourteenth Amendment provides a way around that artificial crisis.

The debt ceiling is a different artificial crisis, one that doesn't become "live" for a little while longer.