More on the 14th

Nancy Pelosi’s recent comments about using the 14th Amendment to avoid the debt ceiling aren’t new, and in fact, they invoke an extensive argument from 2011 about the Constitution and Congress.

Clinton in the 90s, Pelosi and Obama all considered the idea of issuing debt, over the debt ceiling. then justifying that debt, somehow, because the 14th makes that debt. Obama figured it out:

And back in 2011, President Obama reacted to President Clinton’s comments with a widely quoted response: “I have talked to my lawyers. They are not persuaded that that is a winning argument.”

If Trump simple issued debt, without authorization, the House can take him to the Supremes, or the House could impeach.  The amount of debt released before the Supremes issued an order would be small, ineffective and the Supremes will argue the 14th does not over ride the Houses duty to authorize spending. The court order will stop payment on the remaining amount.

The 1935 ruling that debt must be paid is much closer to the truth, and is the thing that kills debt money.

How do we build a line of symmetry about that? We need a scofflaw queue to measure it, or an over the counter contract renewal we do with the right to coin. The central bank has to run a side business buying and selling gold, and that gets us back to the tiny Nixon Shock business.  And behold! It also explains why we go on and off gold so often, the 14th has imposed an unneeded hard bound on debt money, another nightmare in the  making.

This becomes a true five color problem, in our theory.  I keep getting pushed., I need help. We will need the force.  Remember, gold has a slower delivery cycle. We are stuck with inflate/ redenominate cycles just to get around the error in the 14th. The solution has to be algorithmic, observable, and equally bettable, the usual sandbox conditions.

 The 14th should be erased completely, I sort of agree with Sotomayor's implicit position.  For central banks, especially the Fed, sorry, but it is back to the lab for a while. This one will cost the Fed.