“Running Out of Money”. The US Government On the Brink of Default. How Obama Could Beat the Debt Ceiling
Until the control of the issue of
currency and credit is restored to government and recognized as its most
conspicuous and sacred responsibility, all talk of the sovereignty of
Parliament and of democracy is idle and futile — Canadian Prime Minister William Lyon Mackenzie King, 1935
currency and credit is restored to government and recognized as its most
conspicuous and sacred responsibility, all talk of the sovereignty of
Parliament and of democracy is idle and futile — Canadian Prime Minister William Lyon Mackenzie King, 1935
On November 3rd, the US government will again run out of money due to a debt ceiling artificially imposed by Congress. This is the third time in four years that
a radical faction has taken the country to the brink of default to
extort concessions that are at best only marginally related to the
budget.
The debt ceiling is an unconstitutional gimmick that violates the 14th amendment,
which says the validity of the government’s debt shall not be
questioned. The debt was incurred by Congress when it passed the budget,
and the money has been borrowed and spent. Congress cannot now refuse
to pay.
One good gimmick deserves another. The debt ceiling could be
eliminated for good, by restoring to the government its constitutional
authority to create money. Article 1, Section 8, provides: “The Congress
shall have the power to coin money [and] regulate the value thereof . .
. .” The president could pay the government’s bills by issuing some
large denomination coins by executive order.
