Default averted? Announcement to be made at noon

[lozina]

PSA: Supposedly there is a deal being announced at noon

GOP Senate aide says there will be an announcement about a deal on shutdown and debt at noon on Senate floor, CNN's Dana Bash reports.

Sources: Senate reaches deal to end shutdown, avoid default

 

[networkman]

Big whoop.. IF the Senate comes up with a deal, IF the GOP lead House agrees and passes it and IF the President decides to actually sign it, THEN most of you can probably celebrate, though I will not be celebrating.

 

[Doppel]

There never was going to be a default. I am sad so many thought there was ever a chance of it.

 

[DominionSeraph]

I can't believe they let it work. The Tea Party just kept asking for more, and more, and more, and more, and the Democrats finally caved in and let them have everything just to get them to stop. By this time tomorrow we'll live in a country where women don't have the right to vote, slavery is reenacted, and it will be the official religion of the United States that Jesus was a white American of European descent who spoke English and praised the innate holiness of the wealthy.

Oh, wait, I think I got something backwards.

 

[spacejamz]

Wonder how far they kicked the can down the road this time?

 

[shira]

Deal announced:

http://www.washingtonpost.com/blogs/post-politics-live/liveblog/live-updates-the-shutdown-9/

Reid announces deal

Senate Majority Leader Harry Reid (D-Nev.), speaking on the Senate floor, struck a triumphant note as he announced a bipartisan deal with Senate Republicans.

“In the end, political adversaries set aside their disagreements to prevent that disaster,” Reid said of a potential government default.

Reid said the plan will appoint conferees to a budget conference committee, led by Senate Budget Committee Chairwoman Parry Murray (D-Wash.) and House Budget Committee Chairman Paul Ryan (R-Wis.).

Reid also confirmed the government would be funded through Jan. 15 and the debt ceiling would be lifted until Feb. 7.

Senate Minority Leader Mitch McConnell (R-Ky.) said he is “confident” the plan will pass in both chambers of Congress. The House remains the biggest stumbling block for the bill, and House Speaker John Boehner (R-Ohio) has not committed to allowing a vote on the Senate plan.

Reid said the Senate will change its ways following the current budget mess.

“Sen. McConnell and I have sat in very, very serious discussions the last few days,” Reid said. “We’re going to do everything we can to change the atmosphere in the Senate and accomplish things that need to be done for our country.”

 

[dank69]

Deal announced:

http://www.washingtonpost.com/blogs/post-politics-live/liveblog/live-updates-the-shutdown-9/

Great, Ryan the RINO will be the rep for the GOP? He'll probably raise spending.

 

[Jaskalas]

Default averted? Announcement to be made at noon

There never was going to be a default. I am sad so many thought there was ever a chance of it.

No chance of default because per the 14th amendment no law of Congress may stop the President from servicing the debt. Congress does not have the power, if we "default" then that would solely be the President's choice and responsibility.

 

[Genx87]

Heh I have to admit this time around they almost had me believing they wouldnt raise the debt ceiling. Ill read about how much of the can they are kicking down the road in a bit.

 

[First]

No chance of default because per the 14th amendment no law of Congress may stop the President from servicing the debt. Congress does not have the power, if we "default" then that would solely be the President's choice and responsibility.

Yikes. There is no legal precedent for it happening, the lawsuits and ramifications of simply paying interest and being late on other payments is legally complex. Stop pretending the 14th Amendment would have been some easy legal decision.

 

[CrackRabbit]

Heh I have to admit this time around they almost had me believing they wouldnt raise the debt ceiling. Ill read about how much of the can they are kicking down the road in a bit.

This still hinges on the house. If Boehner fucks this up by not allowing it to come up for a vote, he (and the rest of the house leadership) should be arrested and charged with treason.
I'm dead serious.

 

[Fayd]

No chance of default because per the 14th amendment no law of Congress may stop the President from servicing the debt. Congress does not have the power, if we "default" then that would solely be the President's choice and responsibility.

Quoting the relevant parts...

Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

Section 5. The Congress shall have power to enforce, by appropriate legislation, the provisions of this article.

So where do you get the idea that "no law of Congress may stop the President from servicing the debt."? The law as I read it explicitly states that servicing the debt is exclusively congress' obligation.

 

[dabuddha]

soooooo do I get to go to work tomorrow?

 

[shira]

No chance of default because per the 14th amendment no law of Congress may stop the President from servicing the debt. Congress does not have the power, if we "default" then that would solely be the President's choice and responsibility.

Krugman had a column on this, and his opinion was that the President would be breaking the law whether he did nothing (and ran afoul of the 14th amendment) or ordered the debt ceiling to be raised (and thus encroached on the Legislative branch's powers). But it seemed pretty clear to me that the President was not going to invoke the 14th.

 

[laspariahs]

soooooo do I get to go to work tomorrow?

Depends it the house agrees.

 

[Jaskalas]

Yikes. There is no legal precedent for it happening, the lawsuits and ramifications of simply paying interest and being late on other payments is legally complex. Stop pretending the 14th Amendment would have been some easy legal decision.

The President would simply instruct his administration to continue servicing the debt. Anyone wanting to take him to court may, but the Constitution would hand them their ass.

The validity of the public debt of the United States [...] shall not be questioned.

 

[shira]

Depends it the house agrees.

Well, first this has to get voted on in the Senate. And we may get some delaying tactics from Cruz.

The 17th is just the (estimated) day that the U.S. will have maxed out on its big credit card. But it's almost certainly not the day we'll default on payments, as we do have cash on hand now, and more money coming in.

 

[Jaskalas]

Quoting the relevant parts...

So where do you get the idea that "no law of Congress may stop the President from servicing the debt."? The law as I read it explicitly states that servicing the debt is exclusively congress' obligation.

Because Constitution trumps law. The public debt shall not be questioned.

From this I derive that Congress cannot interfere with servicing the debt. Thus the "debt limit" is nothing more than the prohibition of issuing new debt. It's a budget battle, not a "default on your debt" battle.

 

[laspariahs]

Well, first this has to get voted on in the Senate. And we may get some delaying tactics from Cruz.

The 17th is just the last day that the treasury can continue to borrow money. But it's almost certainly not the day we'll default on payments, as we do have cash on hand now, and more money coming in.

Considering China has said the 17th is the day, it's the day. Everyone can keep servicing all the debt they want, if the people who own the debt are unhappy, we will be unhappy, in a nutshell.

 

[First]

The President would simply instruct his administration to continue servicing the debt. Anyone wanting to take him to court may, but the Constitution would hand them their ass.

You're not particularly bright or nuanced. It is well known in legal circles that the lack of precedent and lawsuits alone would be extremely legally perilous to the validity of raising the debt ceiling by simple Presidential fiat, to say nothing of the worldwide market reaction to the US being late on any debt principal payments of any kind. It's ignorant to suggest otherwise.

 

[Oldgamer]

Sen. McCain said there will be more crisis’s to come, and this is not the end of it. So I guess we can expect shit to come up again in January.

 

[First]

Because Constitution trumps law. The public debt shall not be questioned.

Dumbest statement of the century. The Constitution is law. I'm not sure you understand how our legal system works.

From this I derive that Congress cannot interfere with servicing the debt. Thus the "debt limit" is nothing more than the prohibition of issuing new debt. It's a budget battle, not a "default on your debt" battle.

No, false. The debt limit is about paying prior debts.

Fact: not paying principal is a technical default, even if you're paying interest. Deal with that reality however you like, but no bullshit about the 14th Amendment will change that.

 

[kia75]

Wonder how far they kicked the can down the road this time?

Do you mean regrading the debt ceiling? Or do you mean regarding the budget?


Part of the compromise is that it changes how the debt ceiling is raised. There won't be any more battles over the debt ceiling. Congress can vote to disapprove a debt ceiling incrase but Obama can veto it. Basically, as long as the Pres wants the debt ceiling to be increased, it will be.

 

[glenn1]

The announcement indicates the shutdown will continue but not at what spending level. The 2014 round of sequester cuts weren't mentioned as being included as part of the deal either, so it would seem those were left in place. So the agreement would seem to lock in (by inaction) the FY2014 sequester cuts of $54.7B to non-defense discretionary spending, or about 7.2%. The sequester cuts could of course be modified in the next couple of months, but the default is they'll happen unless an agreement is concluded to the contrary. And we get to have the debt ceiling conversation again in a couple months.


http://bipartisanpolicy.org/blog/2013/06/guide-2014-sequester

 

[Jaskalas]

Because Constitution trumps law. The public debt shall not be questioned.

Dumbest statement of the century. The Constitution is law. I'm not sure you understand how our legal system works.

I make a simple statement in what you quoted. Constitution > anything Congress can do short of a new Constitutional Amendment. Do you dare refute that?

Check your emotions before spouting such rubbish.