💸🏦 Da Kine Debt Limit Legit o’ wot? Biden’s Krew Stay Pondering Dat! 🤔
Ho, braddahs an sistahs! Da government stay heading towards one possible pilikia 🤷♂️💣 with da national debt as soon as nex’ month. Officials stay pondering 🧐 one legal theory wea previous administrations wen say “No can, brah.”
Stay get one big kine standoff between House Republicans an President Biden ova upping da nation’s borrowing limit. Da big kahunas in da administration stay debating 🤯 wot fo’ do if da government run outta kala 💵 to pay da bills. Dey even thinking about one option dat previous administrations wen think was nuts 🥜.
Dat option stay like one constitutional challenge to da debt limit. Unda dis theory, da government gotta continue issuing new debt fo’ pay da bondholders, Social Security recipients, government employees an oddahs, even if Congress no can lift da limit before da so-called X-date.🗓️
Dis theory stay based on da 14th Amendment clause dat say “da validity of da public debt of da United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”
Some kine legal scholars think dat language overrides da statutory borrowing limit, which currently caps federal debt at $31.4 trillion 💰 an requires congressional approval to raise or lift.
Da big kahunas at da White House, da Treasury Department, an da Justice Department stay getting all heated ova dis theory. No can tell yet if President Biden goin’ support dis kine move, which goin’ cause all kine ripple effects fo’ da economy an almost fo’ sure goin’ get legal challenges from da Republicans. 🏛️
Still, da debate stay getting mo’ urgent as da US stay getting closer an closer to default. Treasury Secretary Janet L. Yellen wen warn on Monday dat da government could run outta kala as soon as June 1 if da borrowing cap no get lifted. 🚀
Biden going meet with Speaker Kevin McCarthy of California at da White House on May 9 fo’ talk story about fiscal policy, along with oddah top congressional leaders from both parties. But still unclear wot kine deal dey can reach to avoid one default. 🤝
House Republicans refuse to raise or suspend da debt ceiling unless Mr. Biden accepts spending cuts, fossil fuel supports an a repeal of Democratic climate policies, all in one bill dat just wen clear da chamber last week.
Mr. Biden wen say Congress gotta raise da limit without conditions, though he also open fo’ separate talks about da nation’s fiscal path. 🚧
One group of legal scholars an some liberal activists been pushing da constitutional challenge to da borrowing limit for mo’ than one decade. No previous administration wen take it up. An legal scholars no can agree about da constitutionality of such a move.
But even with all dis, da president stay saying ova an ova, it’s da job of Congress to raise da limit to avoid one economic disaster. 🌪️
Top officials, including Ms. Yellen and da White House press secretary, Karine Jean-Pierre, stay avoiding questions about whether they believe da Constitution would force da government to keep borrowing to pay its bills after da X-date.
Da government wen hit da borrowing limit on Jan. 19, but Treasury officials still can use wot dey call “extraordinary measures” to keep paying bills on time. But, those measures going run out in da next few months, maybe even as soon as June 1. If da Treasury stop paying all da bills, da government would default on its debt. Economists say dat could lead to one financial crisis an recession. 😱💥
Progressive groups been encouraging Mr. Biden to take actions fo’ go around Congress on da debt limit an continue spending without interruption, like minting one $1 trillion coin to deposit with da Federal Reserve. But inside da administration, most of these ideas wen get rejected. Publicly, Biden’s aides stay saying da only way to avoid one crisis is fo’ Congress to act. 🏦💰
Still, inside da administration, stay one big question: wot da Treasury would do if Congress no can raise da limit in time. Cuz, plenty officials say, da law stay unclear an so is da Constitution, which gives Congress da power to tax an spend. 🤷♀️📜
Officials who support invoking da 14th Amendment an continuing to issue new debt say da government would be exposed to lawsuits either way. If it fails to continue paying its bills after da X-date, it could be sued by anyone who no get paid on time in da event of a default. ⚖️💼
Oddah officials stay arguing dat da statutory borrowing limit is binding, an dat trying to ignore it would get one immediate legal challenge dat would probably go straight to da Supreme Court. 🏛️⚖️
Almost everybody agree dat dis move could mess up financial markets. It likely to cause one big spike in short-term borrowing costs cuz investors would demand one premium to buy debt dat could be invalidated by a court. 💸💔
One economist from Moody’s Analytics, Mark Zandi, modeled dis situation dis year an found it would create short-term economic damage but long-term gains if courts wen uphold da constitutional interpretation — by taking away da threat of future brinkmanship ova da limit.
“Da massive kine uncertainty created by da constitutional crisis leads to a sell-off in financial markets until da Supreme Court rules,” Mr. Zandi wrote in March. Economic growth an job creation would be dampened briefly, he added, “but da economy avoids a recession and quickly rebounds.” 📈📉
Obama administration officials briefly thought about — and quickly threw out — da constitutional theory when Republicans no like raise da limit in 2011 unless da president agreed to spending cuts. Treasury lawyers neva wen issue a formal opinion on da question, an they no have yet dis year, department officials said dis week. 📜🚫
But in a letter to da editor of The New York Times in 2011, George W. Madison, who was Treasury’s general counsel at da time, suggested dat department officials no believe in da theory. He was directly challenging an assertion by da constitutional law professor Laurence H. Tribe, who wrote in an opinion essay in The Times dat Treasury Secretary Timothy F. Geithner had pushed to embrace da 14th Amendment interpretation, which Mr. Tribe wen oppose. 📰🖊️
“Like every previous secretary of da Treasury who has confronted da question,” Mr. Madison wrote, “Secretary Geithner has always viewed da debt limit as a binding legal constraint dat can only be raised by Congress.” 🏦🔒
So, da real question stay: Is da debt limit constitutional? Da answer, fo’ now, stay up in da air. As da government stay teetering on da brink of one possible default, all we can do is wait an see wot going happen. And, hopefully, da powers dat be can find one solution dat won’t put da economy in jeopardy. 🙏💫
NOW IN ENGLISH
💸🏦 The Debt Limit Debate: Constitutional or Not? Biden’s Team Ponders 🤔
As the government faces a potential debt default as early as next month, officials are considering a legal theory previously ruled out by other administrations. This situation has led to a standoff between House Republicans and President Biden over raising the country’s borrowing limit, with administration officials contemplating their next steps if the government runs out of cash to pay its bills. 😱💰
One of the options they are considering is a constitutional challenge to the debt limit, a move previously thought unthinkable by past administrations. 🤔🏛️
The idea rests on a clause in the 14th Amendment, suggesting that the US government would be required to continue issuing new debt to pay bondholders, Social Security recipients, government employees, and others, even if Congress fails to lift the limit before the critical X-date. ⏳💸
Legal scholars are arguing whether this language in the 14th Amendment overrides the statutory borrowing limit, which currently caps federal debt at $31.4 trillion and requires congressional approval for any increase. 📚⚖️
Top economic and legal officials at the White House, the Treasury Department, and the Justice Department have been intensely debating this theory in recent months, according to several sources. 🏦🕵️♂️
However, it remains unclear if President Biden would support such a move, which could have serious implications for the economy and likely prompt legal challenges from Republicans. 🐘👀
As the US approaches a potential default, this debate becomes more urgent. Treasury Secretary Janet L. Yellen has recently warned that the government could run out of cash as early as June 1 if the borrowing cap isn’t raised. ⏰💔
President Biden is scheduled to meet with Speaker Kevin McCarthy of California at the White House on May 9 to discuss fiscal policy, along with other top congressional leaders from both parties. The president’s invitation was spurred by the accelerated warning of the arrival of the X-date. 🗓️🤝
However, it remains uncertain what kind of compromise may be reached in time to avoid a default. House Republicans have refused to raise or suspend the debt ceiling unless Mr. Biden accepts spending cuts, fossil fuel supports, and a repeal of Democratic climate policies contained in a bill that narrowly passed the chamber last week. 🌎🔥
Mr. Biden insists that Congress must raise the limit without conditions, although he is open to separate discussions about the nation’s fiscal path. 💼🕊️
Legal scholars and some liberal activists have been pushing the constitutional challenge to the borrowing limit for over a decade, but no previous administration has taken up the cause. Lawyers at the White House and the Justice and Treasury Departments have not issued formal opinions on the question, and legal scholars are divided about the constitutionality of such a move. 🎓❓
“The Constitution’s text bars the federal government from defaulting on the debt — even a little, even for a short while,” wrote Garrett Epps, a constitutional scholar at the University of Oregon’s law school, in November. “There’s a case to be made that if Congress decides to default on the debt, the president has the power and the obligation to pay it without congressional permission, even if that requires borrowing more money to do so.” 📝🤯
On the other hand, some legal scholars argue that the limit is constitutional. “The statute is a necessary component of Congress’s power to borrow and has proved capable of serving as a useful catalyst for budgetary reform aimed at debt reduction,” wrote Anita S. Krishnakumar, a Georgetown University law professor, in a 2005 law review article. 📖💡
The president has consistently said that it is Congress’s job to raise the limit to avoid an economically catastrophic default. Top officials, including Ms. Yellen and White House press secretary Karine Jean-Pierre, have sidestepped questions about whether they believe the Constitution would compel the government to continue borrowing to pay its bills after the X-date. 🎙️🙅
With the government’s borrowing limit reached on Jan. 19, Treasury officials can deploy extraordinary measures to continue paying bills on time. These measures, which are essentially accounting maneuvers, are set to run out in the next few months, possibly as soon as June 1. If Treasury stopped paying all bills, the government would default on its debt, and economists have warned that this could lead to a financial crisis and recession. 😨📉
Progressive groups have urged Mr. Biden to take actions that would circumvent Congress on the debt limit and continue uninterrupted spending, such as minting a $1 trillion coin to deposit with the Federal Reserve. Internally, administration officials have rejected most of these ideas. Publicly, Biden’s aides have said the only way to avert a crisis is for Congress to act. 🏦🪙
“I know you probably get tired of me saying this from here over and over again, but it is true,” Ms. Jean-Pierre said on Thursday, after referring a question about the 14th Amendment to the Treasury Department. “It is their constitutional duty to get this done.” ✊🗣️
Inside the administration, the question remains: What would Treasury do if Congress doesn’t raise the limit in time? Many officials say the law is unclear, as is the Constitution, which gives Congress the power to tax and spend. 🤷♀️📜
