I’ve been wondering about the converse, actually. Would U.S. buyers of U.S. Treasuries have standing to sue? (To suspend the debt limit)
6 Likes
I’m sorry it’s too much to ask for them to fragment their party; although, splitting the ranks’ vote on this issue may be viable.
3 Likes
Just because Donnie stiffs his creditors doesn’t mean the U.S. Government should do the same thing. McCarthy is a beholden toy to Donnie in every respect, including wanting to destroy the country.
7 Likes
If I can’t have fierce gay children, I don’t want them. And trans people throw the best parades – I bet more people attend pride parades than almost any other annual parade in most cities and there is always a trans person on those committees carrying the weight with grace.
Meanwhile, guess who some of the larger holders of existing US Treasuries are? Every bank you can name in this country. The SVB bank run was just an appetizer.
16 Likes
Holders of US debt would be wiped out in a default. They suffer the opposite of an injury here.
The 14th Amendment is clear, and Biden should issue an executive order raising the debt limit. The GOP’s legislative terrorism endangers the full faith and credit of the U.S. Let the GOP House sue the Biden Administration for the right to destroy our country.
11 Likes
The media needs reminding. In this impasse, Democrats aren’t asking for anything except for Republicans don’t crash the economy. That is our supposed demand. Republicans are demanding a ransom to do so. The danger is coming entirely from Republicans threat to crash the economy and demand for payment to not do so. Quite straightforward.
29 Likes
Couldn’t Biden issue an executive order to the Treasury Department to continue paying the bills? Then couldn’t Biden file suit to enforce his executive order, asking for a preliminary injunction and then a permanent injunction?
3 Likes
Ok, but the arbitrary debt limit has been around since WWI, so why hasn’t any administration done that already, preferably with a more cooperative supreme court? And meanwhile as the suit wends its way through the courts, tbills held as part of banks’ 5% FDIC-mandated reserve just lost 20-50% of their market value. Say hello to the biggest bank run ever.
8 Likes
A while back Alex Wagner laid out about as concise a run-down of what McCarthy’s poison Bill would do…across a number of sectors.
3 Likes
Whether the Congress raises the ceiling or not, I don’t see the US actually defaulting on the debt.
2 Likes
They still suffer injury from “print more dough”. I’ve lived in a country that periodically devaluated its currency. That injury is real. I’m not trying to have it both ways, just pointing out that “print more dough” injures, and so does damaging the integrity and market value of existing notes by using legally dubious gimmicks. Some of the notes have maturities as much as 10 years out and as SVB demonstrated, sometimes you need to convert your paper to cash right now and have to take what the market will pay rather than expect to receive face value.
6 Likes
Who’s gonna buy these T-bills that might get null-and-voided at the whim of 5 clowns in black robes? You think any bank’s CFO is going to put any part of the bank’s reserve into notes that might lose half their value overnight?
7 Likes
China and Japan hold about a trillion each…
Obama never saw a fight he couldn’t run away from.
I guess we’ll see what kind of backbone Uncle Joe has.
A) he’s already done this. The US is already prioritizing things like paying up on t-bills while this mess plays out. B) when you’ve run out of money, you can’t pay shit. Yellen is essentially saying the government is technically insolvent as of June 1st.
6 Likes
I wouldn’t count on it. Their masters have all the money and clout they need to make “fetch” happen.
1 Like
Because they know there’s always more where that came from.
Sorry, but this is boring.
1 Like
This will be the Speaker’s undoing.
Next they’ll be looking to “hang Kevin.”
3 Likes