Power! Unlimited Power!
It’s been a busy day of make-beleive, going from fiat-fiat-fiat money all the way to fiat governance. Wynton Hall has the latest:
Senate Majority Leader Harry Reid (D-NV) has reportedly told President Barack Obama that he would back the president overriding congressional authority and unilaterally raising the debt ceiling.
House Minority Leader Nancy Pelosi (D-CA) was more forceful: “I’ve made my view very clear on that subject: I would do it in a second. But I’m not the president of the United States.”
That last line has already given me several nearly-orgasmic shudders of relief, but it’s not really germane to the story. The story is that the two highest-ranking Democrats in each chamber don’t give a good got-dam about the rule of law, so long as the gravy trains run on time. And if that means a one-man junta? So be it.
It’s time we realized there’s no more gravy and the train is ready to derail.
Not to be nitpicky, but the last word should be “derail.”
Thanks for the catch!
Fiat governance is supported by Harry Reid because he thinks he’s an Alfa male. Yugo, Harry.
So, I’ve had this scenario kicking around in my head for a while now.
Obama ignores the debt limit and orders the Treasury to issue bonds as necessary. The House passes a bill condemning the actor on and stating that any bonds issued after Jan. 1, 2013 are void, the bill dies in the Senate. In 2016 the GOP wins the Presidency, in no small part to the massive interest rate hike/inflation caused by these new bonds. By 2017 much of our current debt has been rolled over and President Perry gives an executive order implementing the earlier House resolution. Poof! A significant portion of our debt is gone and the global financial markets go…nonlinear.
The reason that Pelosi/Reid are either stupider than they look (an accomplishment) or bluffing is that no serious financial institution would ever buy any debt instruments issued with such vague authority. Not a one. CSA war bonds would have a better market acceptance.
I don’t know, Greece seems to indicate there’s a market for crappy sovereign debt, if the interest rate is high enough. On the other hand we have to offer a heck of a lot more debt than Greece, and there’s no way these bonds would get a decent rating. On the gripping hand, there’s always the Fed.
I’m not talking about crappy debt. I’m talking about debt whose basically validity is dubious.
yeah… but we don’t actually need anyone to buy our debt anymore… we just print money and buy our debt from ourselves (Trillion dollar coin anyone?)
If they do this, I am taking up arms against the government…
You’ll have more company if you hold off until they try to convert our 401k/Roth accounts into a federal Annuity.
Yeah, Tom Harkin has floated that balloon a couple of times. Hasn’t gone anywhere yet, possibly because the feedback the Democrats get when he floats it involves, tar, feathers, pitchforks…
http://wizbangblog.com/content/2010/10/14/molon-labe.php
http://money.usnews.com/money/blogs/capital-commerce/2008/10/23/would-obama-dems-kill-401k-plans
Frankly, it will be unnecessary to do anything. When such insanity is actually implemented as policy total collapse is at hand. The Treasury can mint any coin and the Fed can print any note worth eleventeen gazillion if they so wish. Such acts will be insignificant if no real parties will accept those inflato-bucks as tender for obligations (and they won’t if Rubles, RMB or Reals are more stable as reserve currency). That is when default becomes inevitable and there will be no possible way for the mandarins of the political class to kick that can any further. Our collapse will very much resemble that of the Soviets, ironically enough; nobody will have to fire a single shot in anger.
Add the congressman from the Bronx who wants to repeal Presidential term limits and you got one hell of a fun bunch there.
So, these big cahunas of Congress are willoing to just concede the power of Congress to the President? Are they really that much in love with dictatorship? Do they even hear themselves? Geez, if you don’t want the job, just step down, already!
…..And the media remains silent.
Every day I’m reminded of Goebbels.
“make-believe”
Pelosi and Reid dreaming about giving power to Obama to raise the “Debt Ceiling” so that, then they have the power to be the selfless redistributors they’ve always wanted to be?
Note how important it is for Nancy to identify herself as having ‘always been clear about.’ She sounds like her pompous goddamn boss.
It is more about self and identity to these people.
Why don’t any of the articles about this question mention the list of powers granted to Congress in Article I, Section 8–including that to borrow money on the credit of the United States? Seems to me that the constitutional crisis here has nothing to do with the 14th Amendment; rather, it would be in the President’s asserting that he has the power to do something that is explicitly reserved to the Congress. If this were allowed to happen, then we have to ask why we bother with all those trivialities like Congress and constitutions.
The political crisis is that people who took an oath to uphold the Constitution are willing to ignore it in order to avoid making decisions about where to cut spending.