The President’s Box

American Spectator ^ | October 7, 2013 | By Emil W. Henry, Jr.

[Cincinatus' Wife]

By refusing to negotiate the debt ceiling, the President has drawn another red line. Once again, he is in a tenuous box of his own making.

Contrary to the myths presented by the President and his allies, consider the following:

First, the President can prevent default on our debt and the disruption in the flow of critical entitlement via legislation. He has refused to sign it.

Second, the debt ceiling has been referred to as the “nuclear” option, but it has nothing to do with the full faith and credit of the United States, which can be preserved regardless of the outcome of the fight. In impasse, the U.S. will still pay its bills, but its spending will be limited to the extent of tax revenues. The real fallout from a standoff would be the economic damage that would follow as a result of the dramatic reduction in government spending.

Third, the world’s economies rely upon the smooth functioning of the market for U.S. Treasuries including the $4 trillion “repo” market that uses Treasury securities as collateral and provides much liquidity to the U.S. financial system. If the ceiling is not lifted, rates will rise. But the Repo and other markets will function as they have in past crises......

[SNIP]

.....Apparently, there will be no such dialogue for this administration. To emphasize the point, this president’s surrogates equate such discussions to negotiating with terrorists and arsonists.

Which leads to the President’s latest box: on one hand he and his surrogates forecast “economic collapse” should the ceiling not be raised. On the other hand, by cutting off discussion, he is signaling his resignation to such an outcome. But is it conceivable that he would willingly catalyze economic Armageddon over a debt ceiling impasse?

The answer must be no. Surely the President’s advisers are warning him.....

[Cincinatus' Wife]

Arthur Conan Doyle : "When you have eliminated all which is impossible, then whatever remains, however improbable, must be the truth."

[don-o]

I see that the Senate will convene this afternoon to do some business on nominations. Meanwhile, the House will continue to pass appropriations bills.

Steady as she goes.

[Steven Tyler]

Disagree with one point.
The debt ceiling is needed to block run away spending. A Country cannot forever spend more than their revenue

Yes, a budget lays out the revenue and spending.
A debt ceiling absorbs the month to month spikes, or variation, in revenues and spending.

This ceiling is on a Nations line of credit. That line of credit ought to be paid down

[Liz]

"As I stand before you today to introduce our Commander
in Chief, please permit me to paraphrase the late, great HL Mencken."

"The office of president represents the inner soul of the people.
On Nov 2008, the plain folks of this land reached their heart's
desire. At long last they voted to adorn the White House with a
downright moron.' ”

[Liz]

[Truth29]

Option 3 not discussed in the article: Haul Boehner and such other Republican leaders as necessary in and explain to them just what the NSA, the IRS etc. has on them and is prepared to do to them and those important to them. There is no low which cannot be exceeded by the Regime.

[Buckeye McFrog]

I think Mark Levin is correct.

If we run up against the debt ceiling Obama is going to take John Podesta’s advice and just raise it unilaterally.

Based on their track record Congress will do nothing. And we will have set the precedent that the Executive is empowered to run us as deep into debt as he sees fit.