According to Chuck Schumer the Obama administration is considering ignoring the Debt Limit. It apparently believes that the 4th Section of 14th Amendment ratified in 1865 means something it does not.
It states in part:
“The validity of the public debt of the United States, authorized by law, including debts for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”
Apparently the Obama Administration thinks that this means that “full faith and credit of the United States” can never be questioned and that Treasury Secretary Timothy Geithner can simply authorize the printing of more money ad infinitum.
Apparently, they missed or more likely just chose to ignore the clause which states that the debt must be “authorized by law.” If the debt which the Treasury issues, is not authorized by law, it will certainly be questioned, whether Obama likes it or not.
I feel certain Congress will have something to say about this course of action. Failure to stand up for their Constitutional obligation to authorize the public debt, means that the People will certainly make their voice heard on the subject.
Here is a link to the Washington Examiner Article on the subject: Schumer confirms White House considering ignoring debt limit | Conn Carroll | Beltway Confidential | Washington Examiner.