Krugman makes the case in favor of minting the SUPERCOIN!.
I understand the arguments in favor of it,hell I’m sympathetic to them, but I think the whole thing is just patently ridiculous. It’s no way to run a country. Of course, the GOP refusing to authorize borrowing to pay for the spending they already authorized in order to extract unpopular policy concessions is just as ridiculous.
The legal issue boils down to this: The President is legally obligated to spend the money congress has appropriated on the things that congress has appropriated it for. The President is also legally obligated to not issue any debt beyond the debt ceiling. The President is also constitutionally obligated not to default. Those things are (or, will be in a couple weeks, if the ceiling is not raised) mutually exclusive. The choice will have to be made: which illegal option to go with? The constitution makes it pretty clear that defaulting on the debt is not an option, so bond holders must be paid, which means the President has to prioritize those payments over the day to day operation of the federal government. That is, again, illegal, but the constitution trumps the legislation appropriating the money. That’s what I foresee as being the legal argument, at any rate. No SUPERCOIN! involved.
Terrible ideas. But avoiding the debt ceiling via the SUPERCOIN! is also a terrible idea. The debt ceiling, itself, is a terrible idea. We need to just eliminate the damn thing, and stop making a mockery of ourselves. Governing via gimmick is not a solution.
520 Chestnut 
Reblogged this on Hanuman Capital.
Using gimmicks to counter the gimmicks of the other side shows a serious lack of leadership. The GOP has convinced many in their party that Obama has unilaterally raised spending, so using the Debt Ceiling is necessary to stop him. The best way to fight that is with the actual facts.