The white house: the U.S. faces a new drama due to disputes over debt

WASHINGTON, October 16. /Corr. Andrew Shitov/. The United States faces another political drama because of a possible confrontation between the legislative and Executive branches of power in the country on the issue of raising the debt ceiling. White house press Secretary Josh earnest warned Thursday at a regular press briefing. “We become dangerously close to that level of drama and delays, which, in our opinion, to put it mildly, are not needed,” he said, adding that “such irresponsible brink” of financial disaster “no reason”.

Earlier in the day, the U.S. Treasury announced that the debt ceiling should be reached two days earlier than previously expected, to 3 November. Without a sufficient cash “of the United States for the first time in its history will not be able to fulfil all its obligations,” he warned.

Opposition obstinacy

Currently the debt ceiling, the U.S. is set at $18.1 trillion, which exceeds 100% of GDP. To increase the consent of Congress. That, however, is now under the control of Republican political opposition and not in a hurry to take the necessary decision. For his part, the President – Democrat Barack Obama in the course of a previous debt crises warned that it will not conduct political bargaining with legislators, i.e., to go on political concessions to achieve a simple exercise of their constitutional duties.

The threat took effect, and Congress, as recalled at the briefing, Ernest, has already increased the debt limit, and “without unnecessary drama and excessive delays”. But now among lawmakers-Republicans newly escalated passion because of the imminent resignation of the speaker of the house of representatives John Boehner, so that developments could go in an unexpected scenario.

The choice of three evils

If Congress to make trouble and refuse to raise the debt ceiling, the White house may not have other options out of the crisis, in addition to unconstitutional. Anyway, as recalled by Ernest journalists, this opinion is shared by American legal scholars, has developed a new theory about that.

According to them, the President can unilaterally raise the level of national debt, increase taxes, i.e. revenues, or to stop her spending – stop spending funds from the budget. But any of these actions, including third expressly prohibited by the laws of the United States. Accordingly, the press Secretary asked, “which of these three options appears the White house is the least unconstitutional”.

On the verge of chaos

A direct answer, of course, was not followed. Moreover, Ernest, by his own admission, he willingly got acquainted with the opinion of people who are truly versed in public Finance.

With his hand he only reiterated that the Congress everyone is waiting for “the right thing”, i.e. rising levels of debt. If this “fundamental obligation” is not met, then “the American economy, the US financial system, and potentially the entire global economy could be plunged into chaos,” warned the representative of the White house.

“This should be avoided at all costs”, he added.