During the last debt ceiling crisis, there was talk of President Obama invoking the clause in the 14th amendment to the Constitution, which states:
Sect. 4. 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.
He was then loathe to do so because it would open new territory in constitutional law and there would have been a huge legal upheaval. He was fortunately spared from that by reaching a compromise with the Republican bandits that were holding the country hostage at that time. The compromise included the present sequester that at this point has not satisfied the Republicans, who are demanding even more concessions. Fortunately, Obama has recognized that and is no longer willing to concede more to the insatiable extortionists.
At this point, not willing to give any more ground, he is faced with a choice.Either the Republicans cave and agree to a continuing resolution and a raising of the debt ceiling or the entire world economy is thrown into chaos. The latter alternative is completely unacceptable and I think Obama knows that full well. So the choice comes down to a Republican defeat or the invocation of the 14th amendment. This foray into uncharted constitutional territory appears to be the better alternative for reasons explained beneath the curly-cue.
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