I See Through Obama's Scheme Now...

One can argue, with John Hinderaker and others, that the US Treasury won't default on its debt because there will be plenty of cash coming in to cover interest payments (principal rollovers are included in the current debt ceiling). The notion is that when faced with payment obligations such as, for example, a Medicaid grant to a state, a defense related payment to General Electric, an interest payment on government debt and a payment to Social Security seniors, the Treasury can do the right thing and avoid default on the debt by "defaulting" on some other obligation of lesser legal weight. Of course there is no statutory scheme describing how that is to be done, so the Treasury Secretary would be operaing in a bit of a legal haze.

However! That assumes that the Treasury can actually separate its bills into 'Pay Now' and 'Pay Later' categories. Every household and small businesss in America has refined this skill over the past four years but apparently the Treasury has solved the legal question of its lack of prioritization authority by simply paying everything as it comes due. This was kicked around a few years ago when Obama was threatening to hold up Social Security checks during the 2011 debt ceiling scuffle. The legal mechanisms, including the Trust Fund, are intended to assure that Social Security obigations are already counted agasint the debt ceiling. However, despite a clear Congressional intent no one was sure that the mechanics of implementing those payments would actually work. Here is a former deputy Social Security administrator:

 “I'm now 99.9 percent positive that Treasury has legal authority to pay Social Security benefits in both cases of a government shutdown and hitting the debt limit, since the payment of benefits shouldn’t affect the debt limit because it reduces the trust funds to the exact extent that it increase publicly-held debt,” Fichtner said. “What I don't know is whether Treasury has to pay benefits if it chooses not to.”

And now I see the genius behind the Obamacare enrollment debacle. The Treasury ought to be able to prioritize their payments, but as a practical matter, can the bright lights who brought us the ObamaCare website actually re-engineer the Treasury payment programs in a matter of days or weeks?

The world waits and wonders.

Comments

[Jeff Dobbs]

If only we had a trillion dollar platinum coin...

[GMax]

Yeah why cant we just like, mint a Trillion dollar coin? And then have lunch. Problem solved.

[henry]

Hit, you didn't get your coin?

[Threadkiller]

If the Honor Flight vets are allowed to visit the WWII Memorial because it is a "1st Ammendment function", isn't there a 14th Ammendment violation in not allowing other individuals to visit the site?

[Threadkiller]

Late as usual.

[Ignatz]

--isn't there a 14th Ammendment violation in not allowing other individuals to visit the site?-

Yes, unless their parents were diplomats. :)

[sbwaters]

Ahh! I can breathe again!

[Threadkiller]

Gretchen's gets interrupted by a News flash from Shemp.

It is like having a vomit session interrupted by an onset of diarrhea.

[centralcal]

No need to "wait and wonder!" Obama and his evil cadre pretty much do whatever they damned well please, whenever they damned well want to.

Dictator is speaking now.

[Threadkiller]

"Yes, unless their parents were diplomats"

I like where you are headed with this.

[Threadkiller]

I will not live blog this.

He is a complete asshole. He just accused the Republicans of an attempt to "crash the global economy".

[Threadkiller]

I hope there is a strong rebuttal to this.

If there isn't, the GOP is doomed.

[NK(tryin'2.0)]

Hit and Henry coin stuff-- too funny.

"14th Amendment violation? what is that a constitution thing? you know from that document that's --like-- a hundred years old"--Ezra K.

[Thomas Collins]

"operaing in a bit of a legal haze."

I have to express a friendly disagreement here. I think the 14th Amendment provides the Treasury Secretary with all the authority needed to prioritize the publicly held sovereign debt service payments. No statutory or regulatory authorization is needed. As to POTUS, I think it is a violation of the oath of office (preserve, protect and defend the Constitution of the US) to fail to prioritize payment of sovereign debt.

We are not Argentina (yet, although we're getting there).

[Miss Marple]

This is nothing but a blame the GOP, insult the GOP, stompy-foot name-calling session filled with straw men.

I cant stand this guy.

[Dave (in MA)]

Yeah why cant we just like, mint a Trillion dollar coin? And then have lunch. Problem solved.

And then Biden accidentally uses it in a vending machine to buy M&Ms.

[Thomas Collins]

Obama/Biden prevailed over McCain/Palin because of a financial meltdown. Obama probably figures triggering another one will help him solidify the unassailability of the administrative state in the US. That's the logical conclusion to be drawn from Obama'a talk of a global financial meltdown.

[Some Guy]

More Cowbell!!

[NK(tryin'2.0)]

Chill TK-- Dear leader is letting us see him sweat-- it's all good. 'Crash the World economy'...hmm... what did he do when that came up in 2008... OK let's go to some campaign fundraising and abstain from votes. In truth with no debt increase, the world economy won't crash, just Obummer's parasite economy will starve. Call his bluff, he'll come begging to make a deal in a week. If he doesn't?.... Meh... no new debt let's see what happens, it can't be worse than the status quo-- and we won't owe interest on it.

[Threadkiller]

I predict the Q&A will be interrupted with a special showing of Heidi.

[Miss Marple]

Have we had a question yet? His speaking always sounds like Charlie Brown's teacher to me.

[Miss Marple]

He is stupidly going too far with this. Calling it extortion and giving orders is not too smart.

[Threadkiller]

No questions yet.

[Brian]

These people must be living right on the edge with their own personal finances.

[NK(tryin'2.0)]

ThomasC@2:20-- I would describe the legal issues as to the debt as follows: Sect 4 14th Amend. gives Congress the Power to regulate and insure the Federal Debt so that it cannot be 'challenged'. Congress has done so by imposing the maximum lawful Debt ceiling. Congress has exercised its constitutional power. The Treas. Secy has to obey that limit and obey the 14th Amend. prohibition on 'challenging' the debt, therefore he must payoff Treas Bond interest and redemption to the penny and on time. After that is where it gets hazy, how does Lew spend the revenue as it comes in? We don't want to know-- that's why we have to make a deal when Obummer comes to make one.

[NK(tryin'2.0)]

MissM and TK-- thanks for watching this 'Thing'and relaying to us-- I know I wouldn't.

[Threadkiller]

He names the reporter who will ask questions.

Have other presidents conducted pressers the same way?

[Beasts of England]

What a tool.

[Miss Marple]

Bush had a seating chart and certain people he called on. Don't know how firm it was. Also, he didn't have any friendlies, as far as I know.

[Miss Marple]

I hope Boehner comes out and says, "Everything that guy just said is bull****."

[Threadkiller]

Huff Po gets to ask a question, if that gives you an idea.

"You lie!!!" has not been exclaimed yet.

[OldTimer]

This man is shaming, bullying and belittling the country I love. I don't know how much more of this we can take before even the LIV's have had enough.

I wonder if he hates himself as much as he hates us.

[4JIB2 (Recreating Until it Hurts)]

Why is the Federal government financing child care for working couples? New definition of Nanny State.

He's not the President. He is acknowledging that he is the leader of the Democrats not of the nation. What a complete moron.

[Captain Hate on the iPhone]

I don't know how you can listen to that dunce.

I'm listening to Tammy Bruce from last night slattering fellow same sexer Martina Navratilova for some dumbass statements she made on the shutdown and commie healthcare. Funny, I'd always thought Martina was smarter than that. Idiot.

[henry]

Its official, US Adults are dumber than average. OECD education study.

Fully explains why US wins Nobel Prizes in science and medicine, leads in technology and other innovation. (oh, they didn't measure that).

Actually explains how Obama could be elected.

[NK(tryin'2.0)]

Has any reporter asked a 'trick question', like "how much debt did we have when you became POTUS and what is the debt now?" OR "why was $8T in debt bad when you and every Dem Senator voted against the debt increase in 2006, but $17T in debt is good now." You know tricky stuff like the facts.

[4JIB2 (Recreating Until it Hurts)]

World leaders like the commies in China and Russia have never seen how one party can "blow up the world economy". Really? It is like watching stupid on steroids.

Now acknowledging that Jack Lew has been using unconstitutional emergency powers playing switcheroo on the bonds.

Is he protected by the 5th Amendment at his pressers?

[Miss Marple]

Isn't it fascinating how he knows so much about late-paying of bills, juggling student loans and mortgage payments, and credit ratings?

[Cecil Turner]

Let's see if I have this right: he won't negotiate with people who insist on having their way . . . and so he insists on having his way.

Okayyyy . . .

[centralcal]

Kasie Hunt ‏@kasie 1m

Very unusual scene on the Senate floor right now, with almost all senators seated at their desks listening to Reid talk.

-------

While the Obama propaganda show is playing on TV, Reid made a quorum call in the Senate. Tricks are afoot, I fear.

[Some Guy]

This is great -- Drudge is highlighting that as a Senator Obama voted against raising the debt ceiling.

[narcisoM]

Yeah, this can't go wrong;

http://www.thegatewaypundit.com/2013/10/obama-names-liberal-social-justice-ethics-professor-paul-m-lewis-as-guantanamo-closer/

[NK(tryin'2.0)]

Drudge-- there you go, making a tricky point by noting the facts about Obummer. What else did TOTUS have to say?

[centralcal]

Amanda Carpenter ‏@amandacarpenter 47s

Lots of action on the Senate floor right now. Makes me worry President Obama is doing extended presser as a decoy!

[4JIB2 (Recreating Until it Hurts)]

He stuck on stupid answering the question on Citizens United Redux in the SCOTUS for decision. Blames all the problems in Washington on Citizens United.

[4JIB2 (Recreating Until it Hurts)]

What an asshole. Citizens United has sprung the Tea Party on Congress who are afraid to make a moderate decision. And you the press know it since you are reporting on it.

Unfortunately, the Tea Party can't raise a dime much less a trillion dollar coin because you sicc'd the IRS on them. What a complete jerk.

I am done with this self=serving show. He now says he should have been a APEC and he had to once again apologize for America's constitution.

[centralcal]

Bret Baier ‏@BretBaier 2m

Agreed-Nothing at all RT @brithume Questions from WH press corps are pathetic. As of this moment, not a single tough or challenging inquiry.

[NK(tryin'2.0)]

Citizens United? he's completely stuck on stupid and there are no grown ups around in DC to tell him the facts. We absolutely have to refuse to increase debt, and starve this guy of any more $$$ to f&%* us over with.

[4JIB2 (Recreating Until it Hurts)]

CC,

Because in answering the question on Citizens United Redux he basically reminded the press that they work for him, in so many words.

[narcisoM]

He still raised twice as much as opposed to 6 times as much even after Citizen united

[Threadkiller]

It seems he has said "ransom" more often than "me" or "I" combined.

[4JIB2 (Recreating Until it Hurts)]

Not much better choice on Cspan. Its either Obama or Durbin. Yuk. Going to school to watch Frederick run cross-country.

[Threadkiller]

The Senate session is a diversion to keep Cruz or Paul from getting in front a camera while the paint from Odummy's broadbrush assholery is still wet.

[Threadkiller]

Oh? What did I just hear??
It sounded like a couple brave reporters said: "Mr. President, Mr. President."

Are they really trying?

[matt]

The Administration will choose to inflict as much pain on the American people as it possibly can.

It has already demonstrated that it will spit in the faces of every American who disagrees with them. The illegal immigrant rally is simply the icing on the cake.

[Threadkiller]

McCain is slamming "this side of the isle".

[Jane-Rebel Alliance1]

Let's see if I have this right: he won't negotiate with people who insist on having their way . . . and so he insists on having his way.

I know, and the idiot press buys it. Just remember he is doing this press conference (that I refuse to watch) because he is losing.

[jimmyk]

Drudge is highlighting that as a Senator Obama voted against raising the debt ceiling.

That would be an obvious question: Mr. President, in 2006 you voted against raising the debt ceiling, saying .... Were you holding a gun to President Bush's head? If not, what has changed?

[AliceH]

I don't know, Jane.

I really doubt he believes he's losing. I think a more plausible reason for the news conference is he is bored - can't play golf, can't fly around the world to inconvenience other countries, no chance to gloat about Obamaare. This is probably the least-worst action his staff could think of for him to do to prevent him doing something... not least-worst.

[NK(tryin'2.0)]

Matt's@3:04 is very important. Obummer is the Black Nationalist he was on the Southside of ChiTown since the early 90s. Race/class Alinsky war is all he knows. he's saying that Black Nationalists took control of MoTown and bankrupted it, they became part of the Cook County machine and bankrupted Illinois, and La Raza is bankrupting the "Golden State", the Third Worlders have ruined those huge national assets, and they'll do it to the whole country unless whitey plays ball now. Don't wait until you're a monority whitey, make your best deal now. That's the message, plain and simple.

[colinsmammy]

if ? news conference/reid senate tyranny a boldface trick...do you think the R's have sense/courage to finally speak truth to power?

dems are fully aware they have until Nov.'14 to finish their clusterfail of American traditional(constitutional) rights.

psychiatry profs everywhere: tape today's Obama presser as living example of:narcissistic/sophomoric personality disorder with Napoleonic tendencies, evidence of no-value/abusive childhood, easily affected by hierarchal dogma..

could describe the Clinton's also..but would have to add sexual deviancy/perversion of power, egomania?

Who is our Patrick Henry, George Washington, John Adams ?

[Janet]

There are all kinds of laws that Obama doesn't enforce. Oh my goodness!
He is such a liar. A liar. A liar.

[Trevor Saccucci]

We don't want to know-- that's why we have to make a deal when Obummer comes to make one.

NK, I just don't see Obama making a deal here; since, in his own mind, he can do no wrong, any negative consequences ensuing from no debt limit increase and a decision to default on the national debt will be the fault - and responsibility - of others. He also sees such grief as a political bludgeon to punish his enemies with. Obama, Harry Reid, Nancy Pelosi, etc. think they can exercise near-complete directorial control of this political theater of the mind so it redounds to their benefit. But they've confused their theater of the mind with objective reality; the objective reality of stiffed foreign creditors and unpaid domestic obligations won't be confused about them, though.

[Threadkiller]

Cruz is up on the Senate floor

[NK(tryin'2.0)]

TrevorS-- they're desperate for the money. The OPM has dried up, all they have is debt financing to pay off parasites and cronies. Desperate times...

[Danube on iPad]

God damn this scumbag son of a lying bitch. Does he think he's acting like a "leader" now?

Awaiting takeoff from SFO enroute London, Bloody Mary in hand. Radio silence will soon descend.

[Free State Paul]

The Treasury ought to be able to prioritize their payments, but as a practical matter, can the bright lights who brought us the ObamaCare website actually re-engineer the Treasury payment programs in a matter of days or weeks?

I brought this up on the previous thread.

It was my understanding that the Treasury has no practical mechanism for prioritizing payments. Government bills go in one end of the system and payments come out the other, but there's no way to pick and choose in between.

It's like cars going into a carwash. Once the car goes into the carwash, there's no way to say, "Only clean the blue cars."

Again, I don't know if this is really true or not.

[Threadkiller]

He is acting like a Natural Born Leader...

[Free State Paul]

The OPM has dried up, all they have is debt financing to pay off parasites and cronies. Desperate times...

Relax!

The government can still confiscate all our IRAs and 401(k)s and replace them with annuities invested in Treasuries.

[AliceH]

Is anything stirring on the GOP Governors front? Any look like they'll follow Scott Walker's lead to keep parks/memorials/campgrounds open?

Also ... i get this would be exceedingly provocative, and possibly even counter-productive, but don't Gov's have the option of calling up the National Guard to fill these Forest Service/National Parks Svc functions?

[Threadkiller]

It is true, that is why McClintock authored the Full Faith and Credit Act. The act, which passed the House, would prioritize payments.

[NK(tryin'2.0)]

Prioritizing Payments-- after paying debt service and redemption, we DON'T WANT TO KNOW how Obummer will 'prioritize' payments of remaining revenue. That's why conservatives will have to make a deal when Obummer comes calling with an offer.

[centralcal]

Happy travels, DoT!

[NK(tryin'2.0)]

FFC Act-- the Senate will never discuss that, so we are left with Obummer/Lew's 'discretion'.

[NK(tryin'2.0)]

Godspeed DoT-- Enjoy the trip. my wife and I will be in London visiting our daugter in 8 weeks.

[Free State Paul]

The act, which passed the House, would prioritize payments.

But can it be done in the real world, given the system Treasury currently has in place?

[AliceH]

In re: the car wash analogy for bill paying...

Since we are in shutdown, we are seeing now there is a mechanism for stopping payments already in the pipeline selectively. Example: Congress still gets paid, furloughed emps do not. 83% of Justice Dept operations gets funded, 17% does not, etc.

I suspect there are existing technical/processing means to segregate payments by type, category, etc. How could there not be?

[Threadkiller]

Yes, DoT, have a fun trip and if you encounter anyone in England calling someone a "fit bird" please regale them your knowledge of racist slang.

[Old Lurker]

Hat Trick!

Allow me to celebrate the new thread by explaining how in one act, I:

1. Cost myself some money.

2. Unwound generations of settled father to son wisdom which can no longer be used in my house.

3. Validated my role as the house "dumb white husband" worthy of my own TV commercial.

Our garage is at the end of a winding driveway that passes in front of our house, and passes the area where guests park in front of the house. If the area in front of the garage is crowded, we sometimes need to back out of the garage and back all the way to the guest parking area to turn around. Now this is something I can do with my eyes closed but which my wife and both daughters simply cannot accomplish. I always tell them that boys, from birth, can back up and girls cannot at any age, simple as that. It's genetic or something.

Recently I was taking Mrs. L somewhere and it was necessary to do the back out thing since some trucks were in front of the garage. As I proceeded, she politely commented that it is amazing how I can do that and she cannot. Which caused me to smile at her and show off by making eye contact with her and speeding up as I whipped around the curves without looking and backed into the turnaround just to make my point.

Except I did not know the maid was parked in there, and now I know that the bumper on her car costs $781.

Oh the shame! And what great fun the women in my life are having at my expense.

Sorry guys, I set us all back decades.

:-)

[Porchlight]

Safe travels, DoT. London is perfect this time of year.

[DublinDave]

Watch Boehner et all dive on the deal Obama just offered them in his press conference. So, in return for a short term extension of the debt limit AND a clean CR bill (what we wanted all along) the President will agree to consider maybe perhaps listening to what Republicans have to say...maybe.....

Hahahahahahahahaahahahah...... you can see Boehner choking on his Martini and screaming "IT'S A DEAL!!!!!!!!!!"

Like lambs to the slaughter, watch them take them buckle. Once we break them we can do a lap of victory on prime time and 8 weeks from now they'll be in such disarray we'll pick them apart like warm bread.

Obama is brilliant!!!

[AliceH]

Addendum...

I believe there is not a specific field on their "invoice input form" labeled and defined for the purpose of setting a priority value. I think they are playing word games there. I think they can filter on a combination of info, and also that this can readily be automated.

[colinsmammy]

send pics, DoT

Obama: If you just let me continue to 'burn the constitution, rape and pillage'...I promise to call you in the morning ?

[colinsmammy]

send pics, DoT

Obama: If you just let me continue to 'burn the constitution, rape and pillage'...I promise to call you in the morning ?

[NK(tryin'2.0)]

OL!!! don't be 'stylin' in front of the wife until the backup maneuver is complete-- then give her a knowing smile. That's what I do when I'm backing my '99 Suburban into the 'slot' in the driveway next to the garage entrance. Hope everyone's OK-- everyone except the bumper that is.

[Jane-Rebel Alliance1]

Say hi to the queen DoT. Enjoy!

[rse]

OL-

the key to backing up is to pay attention to the driveway on drivers side and turn as it turns since driveways are the same width.

I had a private school mom when eldest was in 2nd tell me no one could back out because it was winding. I explained that to her. She looked at me like I had 2 heads. I think that was the same luncheon I discovered how many moms took amphetamines to stay thin.

Ask your wife if she will come on JOM and post pics of the respective bumpers.

[Jane-Rebel Alliance1]

Fox keeps saying the president moved. How so?

[daddy]

My favorite Miss Marple, in Bali yesterday:

.

[Beasts of England]

OL@3:34 - I've officially transferred my automotive curse to you. (you're welcome)

[Threadkiller]

Sounds like the maid doesn't know where to park.

[MarkO]

Was he doing the Twist?

[NK(tryin'2.0)]

TK@3:44-- absolute LOL funny. Heh.

[Porchlight]

Too bad, OL! Generous of you to tell a story like that on yourself.

But I think you are right, men do seem to be more talented at driving in reverse. Possibly in part because they are taller? I find it is difficult not because I don't know how to do it but because when I turn my head to look behind me, all I can see is the headrest. If I lean between the front seats to see better, I'm no longer directly behind the wheel and my control isn't as good.

[Old Lurker]

"Ask your wife if she will come on JOM and post pics of the respective bumpers."

Not on a bet, RSE. If she found how many girlfriends I have at JOM she would cancel my broadband connection.

Fortunately my bumper was protected by my trailer hitch; the maid's not so much.

[AliceH]

Jane - This tweet mentions what I think they consider "movement":

Bret Baier ‏@BretBaier 36m

Yep - exit ramp RT @rickklein Obama floats idea of debt ceiling increase just to cover negotiations-actually seems like plausible outcome.

[DublinDave]

"Fox keeps saying the president moved. How so?"

He's willing to consider taking a few minutes to consider maybe...maybe listening to the Tea party.

Maybe.

Just do what he wants and you'll find out.

[NK(tryin'2.0)]

Bali Hai! Jeez what a dufus.

[Captain Hate on the iPhone]

Was it Fox or Shemp who said the President moved? If it was Shemp it might mean something different.

[Old Lurker]

Daddy, tell me that pic is a Hit photoshop. Otherwise it just proves MA politicians have no clue how stupid they look in dresses or tank driver helmets or bunny suits.