President Biden might circumvent Republicans, using that amendment to raise the debt ceiling. Last week it was a different story. Politico told progressives it was risky and it wasn’t being considered. The 14th Amendment says the public debt “shall not be questioned”. Some think he could use this though to raise that ceiling on his own. Biden was both cordial and contentious toward Republicans Sunday.
Biden flew to Japan
He went overseas and changed his mind. “I’m looking at the 14th Amendment as to whether or not we have the authority — I think we have the authority. The question is, could it be done and invoked in time that it would not be appealed, and as a consequence past the date in question and still default on the debt. That is a question that I think is unresolved.”
On one hand, the president was encouraged that congressional leaders were open to negotiation. “So I’m assuming that we mean what we say and we’ll figure out a way to not have to default.” On the other hand, he attacked that other side. “I can’t guarantee that they will not force a default by doing something outrageous.”
Biden painted the GOP as a barrier
“I’ve done my part. it’s time for the other side to move their team positions because much of what they were proposed is simply quite frankly, unacceptable.” He was asked if he should shoulder any blame if the nation defaults, he said no. “On the merits, based on what I’ve offered, I would be blameless.”
Biden again berated the GOP, this time for using this for political advantage.
“On the politics of it, no one would be blameless. And by the way, that’s one of the, one of the things some [people] are contemplating. Well, I gotta be careful here. I think there are some MAGA Republicans in the House who know the damage that it would do to the economy and because I am president, and presidents are responsible for everything, Biden would take the blame. And that’s the one way to make sure Biden’s not re-elected.”
Kevin McCarthy isn’t happy with Biden
They had things in place, now it looks like Biden wants to default. Tax increases are suddenly on the table when they weren’t before. “We were in a good place, he went overseas, and now he wants to change the debate? That’s not healthy.” Biden had commented he wanted tax increases back on the table. McCarthy took issue with that, “He’s now bringing something to the table that everyone said was off the table. It seems as though he wants to fault more than he wants a deal.”
Power and any ensuing upheavals need to be considered with all this. David Kamin is a past deputy director of the White House National Economic Council in the Biden administration.
“You have to worry about the interest rates, the market reaction, the effect on financial markets that rely on Treasurys. There’s no way to avoid potentially significant economic damage given the debate that would ensue. The only option where there is clarity, and you can with confidence avoid economic damage, is Congress acting, as they have in the past.”
