By Michael Snyder The Economic Collapse
s the deadline to raise the debt ceiling draws closer, many are now wondering if Barack Obama will try to go around Congress if a deal is not reached by August 2nd. In particular, a number of voices (including U.S. Treasury Secretary Timothy Geithner) are now touting the 14th Amendment as a way to get around the debt ceiling. There are others that believe that Barack Obama should invoke "national security" in order to avoid a default. If the Republicans and the Democrats do not reach a deal by the end of July, things are going to get really, really interesting and there is no telling what Barack Obama may do.
Section 4 of the 14th Amendment to the U.S. Constitution says the following....
"The validity of the public debt of the 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."
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"The validity of the public debt of the 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."
ReplyDeleteSo, it looks like the only unquestionably guaranteed by the US government pensions and benefits, may be for the particularly specified military ,police ,the FBI the CIA and the homeland security TSA touchy feely guys ?
Everything else is up for debate whatever firm, but private contracts the contributors to social security or other government workers thought they had made.
No wonder the US has started to tap into pension funds to top up the needs of government for deficit spending to avoid default on its national debt expenses.
Of course a lot of the growing national debt is from socialising the losses and continuing bailouts for the finance sector.
For deficit spending ensuring usuryprofits with
Golden Parachute retirement of banksters with bonuses ,but that ,as in greeceis a holy matter for capitalism not a political or peoples welfare problem for the US government .