White House says ‘no backup plan’ to debt ceiling

Thursday, January 10, 2013

WASHINGTON (AP) — The White House is dismissing suggestions to sidestep Congress to meet the nation’s debt obligations, declaring that it is Congress’ responsibility to pay the bills of the United States.

President Barack Obama’s adamant stand that he will not negotiate with Congress over raising the nation’s borrowing limit and Republican demands that a debt ceiling vote be linked to spending cuts have prompted a creative outburst of alternatives to driving the country into default.

Under one proposed scenario, pushed by a number of House Democrats, the president could invoke the 14th Amendment, a post-Civil War change to the Constitution that states that “the validity of the public debt of the United States...shall not be questioned.”

Another proposal would take advantage of a legal loophole meant for coin collectors and have the Treasury mint platinum coins that could be deposited at the Federal Reserve and used to pay the nation’s bills.

“There is no plan B. There is no backup plan,” White House spokesman Jay Carney said Wednesday. “There is no alternative to Congress raising the debt ceiling.”

The government has already reached its $16.4 trillion borrowing limit and by late February or early March the Treasury Department will run out of ways to cover debts and could begin defaulting on government loans.

As of Wednesday 21 Democrats, led by Rep. Peter Welch of Vermont, had signed a letter urging Obama to invoke the 14th Amendment that they say gives him the authority to raise the debt ceiling without going through Congress. The Democrats said in a letter that they would support the use of any authority, including the constitutional provision, to prevent the nation from going into default, an event that some economists predict could trigger a global recession.

The Democrats, in their letter, said they fully supported Obama’s position that raising the debt ceiling will not be subject to negotiation. “Threatening default on our nation’s debt is an economic weapon of mass destruction that will have immediate and catastrophic consequences for the economy as well as America’s standing in the world,” they said.

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JCLifer 4 months, 1 week ago

Not surprising to hear that the White House has no plan. Where is the news?

asb 4 months, 1 week ago

Sounds to me like they have a plan, and one they're going to stick to.

JCLifer 4 months, 1 week ago

How about proposing a budget? We haven't gotten a budget since George Bush left office.

PatsyDecline 4 months, 1 week ago

Who needs a budget when you got Helicopter Ben ready to print on call!!

Bring on the make believe $1,000,000,000,000 coins!!

Perfect solution for our make believe leadership!!

GrumpyGus 4 months, 1 week ago

Perhaps not spend more than we have? Maybe even spend less and pay down the debt? What radical ideas!!! This administration is drowning the country and asking for more buckets of water.

MO4LIFE 4 months, 1 week ago

Where were all of these complaints when george bush put two wars and prescription plan on a credit card with no way to pay for them???????????? Can we say hypocrisy....

spelchek 4 months, 1 week ago

So doubling down is the solution? Can we say hypocrisy....

PatsyDecline 4 months, 1 week ago

There were plenty of complaints about the unfunded nation building.

Are you trying to justify the current madness by citing the prior madness??

FWIW....government spending actually correlates closer to which party is in control of Congress....the WH too obviously....but not as much as one might think.

We are now in a situation where we are running debt "limits" like yellow lights....and there is apparently serious discussion of minting a $1,000,000,000,000 coin.

Full faith and confidence?? LOL

spelchek 4 months, 1 week ago

Just look at the dramatic solutions they're devising to the dramatic problems they created. God bless you sirs for saving us from the awfulness you put us in.

MO4LIFE 4 months, 1 week ago

Republicans claim to honor the constitution but they are selective about what they want to honor.

"the president could invoke the 14th Amendment, a post-Civil War change to the Constitution that states that “the validity of the public debt of the United States...shall not be questioned.”

This is in the 14th amendment but yet and still republicans are questioning it and trying to shut down the gov't.

eileen10 4 months, 1 week ago

They could write a check hahahahaha. Where are Graceful and connor? They disappeared while I was gone.

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