Friday, July 15, 2011

Default by design?

After previously following the news about the debt ceiling and the dispute/disagreements between the Obama administration and the members of Congress who hold that there should be no raising of the debt ceiling. 

A number of knowledgeable commentators have stated on TV, that, not raising the debt ceiling is actually an act that would cause the U.S. to default on already incurred debt.  So, according to this, it's not just a matter of holding the debt ceiling concerning future spending/borrowing; but, that this would in fact cause the U.S. to default on previously incurred debt.

I think that it should be considered that Congress does not have the 'right or the authority' to default on the U.S. debt by decision. I don't see where it could be determined that it is the 'right' of the U.S. Congress to 'decide' to default on the debt of the country. I'd apply the same concept to whether the Congress has the 'right or authority' to shut down the U.S. Government, by decision. I don't see where it could be found that the U.S. Congress has the 'right' to 'decide' to shut down the U.S. Government. It would be the responsibility of the Congress to facilitate the running of government; and not their 'right' to decide to shut it down. By the same application, Congress would not have the 'right or the authority' to *decide* to default on the U.S. debt. It would be the responsibility of the Congress facilitate the servicing the debt.

I don’t see where it could be determined that either of these ‘decisions’ would be considered the prerogative of any elected official or group of elected officials in Congress to ‘decide’ due to ideology and or political philosophy.  What would be the basis for the 'Authority' for Congress to either Default on the U.S. Debt, or to shut down the U.S. Government.

I sent the above msg to the White House via their web site about an hour before this post.  (Slightly revised 1 June 2013; 28 July 2013.)
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