Remember: The US Treasury is obligated to make payments. The rest is optics.
  • Gloating Swann@beehaw.orgOP
    3·
    2 years ago

    But stagecraft that nonetheless downgraded the US’s credit rating the last time they pulled this shit, yes? Who’s more guilty here, the Republicans for their ongoing and suicidal stupidity or the Dems for being able to put a stop to this BUT NOT DOING IT? 😠

    • anji@lemmy.anji.nl
      4·
      2 years ago

      This article is a bit misleading in its assertion that the executive branch has an easy out.

      Yes, the “debt ceiling” is dumb. Yes, the Republicans are (I think arguably unconstitutionally) playing chicken with the nation’s credit reputation.

      However, the legality of the options available to the Treasury are not that clear. While I think “The Coin” is hilarious, and I secretly wish for it to happen, anything like it will absolutely be challenged into the Supreme Court for significantly altering the balance between the separation of powers. Yes, this balance was based on an old-fashioned and incorrect understanding of economics, but nevertheless, it is how the legal understanding of the U.S. constitutions has operated for a long time.