Democratic Underground - White House Rules Out Constitutional Option On Debt Ceiling: Report

White House Rules Out Constitutional Option On Debt Ceiling: Report [View All]

onehandle

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Fri Jul-08-11 05:46 AM
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White House Rules Out Constitutional Option On Debt Ceiling: Report

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Source: Huffington Post

WASHINGTON -- As quickly as the so-called "constitutional option" appeared as a way to resolve the debt ceiling showdown, top White House officials have apparently closed that door.

During Thursday's talks between the president's team and congressional leadership, Treasury Secretary Tim Geithner reportedly revealed that he believed the administration did not have the constitutional authority under the 14th Amendment to simply ignore the debt ceiling and continue borrowing money.

From the very end of a New York Times report, comes the following nugget:

In addition to his warnings about the cost of a default, officials said, Mr. Geithner told the lawmakers the White House did not believe it had the authority, under the Constitution, to continue issuing debt if it reached the debt ceiling. Nobody in the room disputed Mr. Geithner’s bleak assessment, the officials said.

Read more: http://www.huffingtonpost.com/2011/07/07/white-house-rules-out-con_n_892940.html

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White House Rules Out Constitutional Option On Debt Ceiling: Report [View All]