FINANCIAL TIMES: … Among the solutions that have been floated are a presidential invocation of the 14th amendment of the constitution – which says the debt of the US “shall not be questioned” – in order to continue borrowing. “We believe you must be willing to take any lawful steps to ensure that America does not break its promises and trigger a global economic crisis – without congressional approval, if necessary,” said Harry Reid, Dick Durbin, Chuck Schumer and Patty Murray, the party’s top brass in the upper chamber, in a letter to the president on Friday…
The White House could also simply decide tax and spending laws take precedence over the debt ceiling constraints if they are in conflict, and keep spending money…
Or the administration could consider a more outlandish plan to mint one or more platinum coins, to be deposited at the Federal Reserve, and allowing the government to continue paying its bills even without fresh congressional authority to borrow more money. Thanks to an arcane loophole, the US Treasury can mint commemorative coins worth any denomination… (more)
