Anyone know for sure what would've happened if Thursday came and went and Congress was still stuck at an impasse without being able to raise the debt ceiling?
No one knows for sure, and the assumption that the markets would have reacted significantly and the banks seizing up would probably be the case, but it's worth noting that, unlike the spin in the media, this was never going to happen. Congress was not going to default over this. A long term shutdown? Sure. Default? No. The Constitutional crisis that would come about wouldn't be worth the trouble, never mind the possible/probable impacts.
What exactly is the idea behind a borrowing limit? What's the rationale behind it?
The point is to ensure that we're talking about how much debt we're taking on. That's why this fantasy that we don't negotiate over the debt limit is just that - the whole point of the debt limit is to call attention to the amount of debt we're taking on, not to cause a default.
Couldn't the president just, you know, ignore the borrowing limit?
This is the Constitutional crisis I spoke of. If the President does ignore the limit, he runs into a separation of powers issue. If he doesn't and we go into default, is that calling the debt into question? Does the 14th even mean any debts, or is it just a reference to Civil War debts?
We'll never hit default under normal circumstances, so there will never be a lawsuit to get to the point where those questions get answered.
no subject
No one knows for sure, and the assumption that the markets would have reacted significantly and the banks seizing up would probably be the case, but it's worth noting that, unlike the spin in the media, this was never going to happen. Congress was not going to default over this. A long term shutdown? Sure. Default? No. The Constitutional crisis that would come about wouldn't be worth the trouble, never mind the possible/probable impacts.
What exactly is the idea behind a borrowing limit? What's the rationale behind it?
The point is to ensure that we're talking about how much debt we're taking on. That's why this fantasy that we don't negotiate over the debt limit is just that - the whole point of the debt limit is to call attention to the amount of debt we're taking on, not to cause a default.
Couldn't the president just, you know, ignore the borrowing limit?
This is the Constitutional crisis I spoke of. If the President does ignore the limit, he runs into a separation of powers issue. If he doesn't and we go into default, is that calling the debt into question? Does the 14th even mean any debts, or is it just a reference to Civil War debts?
We'll never hit default under normal circumstances, so there will never be a lawsuit to get to the point where those questions get answered.