Quote:
Originally Posted by Solace
I might be wrong on this, but hasn't the Treasury already done some number juggling to extend the date to August? I recall Geitner warning about something to that effect, but I'm not sure.
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As Xellos said.
Quote:
Originally Posted by Xellos-_^
he did, Geithner said he already use trick in the book to extend the date. However some libertarian/conservative economist are saying the government can extend the deadline further by selling the National Highway system, gold in fort Knox., national parks and other assets.
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There are some major drawbacks at selling any of these and it is doubtfull that the treasury can raise enough liquid funds fast enough from these assests, in even in a fire-sale, to extend the deadline. Geithner has set a hard deadline at August 2nd without back-up plans. The closer we get to that date the bigger the (foreign) pressure to settle. One side will probably fold.
If they don't come to an agreement, than there is the nuclear option. Obama can order the Treasury to ignore the debt ceiling (and congress) rather than risk blowing up the international financial system. The fourteenth amendement may or may not allow this. In any case it would be a complete mess for the lawyers to sort out afterwards but certainly preferable to a default. Politicians are expendable.