In this blog today Krugman said this:
"My bet now is that we actually do go over the line for a day or two. And what ends the immediate crisis is not Republican action but a decision by Obama to declare himself not bound by the debt ceiling. He can’t even hint at this possibility until the thing actually happens, because he has to keep the focus on the Republicans, and he has to make them demonstrate their utter irresponsibility before he can take any extraordinary action."
So it seems like he's expecting Obama to either invoke the 14th Amendment and see how that flies or, mint the $1 trillion platinum coin. (And see how that flies.)
But Krugman did add this ominous caveat:
"But maybe I’m wrong; maybe Obama’s lawyers have concluded that there’s really nothing he can do. If so, God help us all."
Not good.
3 comments:
Obama will never mint 'the platinum coin'.
How Obama could eventually be blamed for destroying the country's credit. Self imposed ways to default.
The debt limit is a self imposed limit on government spending. Overdrawing the government's account at the Fed does not appear to be against the law, so any stoppage of legitimate payments for government services could be blamed on an administration that does so.
http://www.cnbc.com/id/43899646
He will never mint the coin, agreed. However, Clinton once said that he should invoke the 14th Amendment and he respects Clinton. But who knows, his lawyers may have thrown cold water on that and Obama is not bold enough to say, fuck it, let the courts settle it.
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