Experts See Potential Ways Out For Obama In Debt Ceiling Maze
In a New York Times article by Adam Liptak, Stanford Law Professor Michael W. McConnell comments on the potential drawbacks of President Obama issuing debt without Congressional approval.
Even as President Obama insists that he would be powerless to save the economy from catastrophe should Congress fail to raise the nation’s debt ceiling, some law professors say he does have options. They may be politically unattractive, unpalatable to the financial markets and subject to legal challenges, these experts say, but these choices are better than failing to live up to the nation’s financial commitments.
The view that Mr. Obama could continue borrowing without Congressional authorization is based on three arguments.
“I don’t think anyone in their right minds would buy those bonds,” Michael W. McConnell, a law professor at Stanford, said of debt issued without Congressional authorization.