Will the Obama administration cause the United States to default on its debt obligations?
The federal government has hit the $14.29 trillion in debt that the government is allowed to carry forward, and the feds can???t borrow any more money until Congress consents to more debt. Economic Armageddon has not hit the U.S. economy???yet.
Treasury Secretary Timothy Geithner has requested another $2 trillion in borrowing authority before his deadline for default on Aug. 2. Everything being done by the Obama administration, though, is setting the table for a stock market crash and debt default???and for purely political reasons.
The first phase of the administration???s fearmongering campaign in which Republicans take the rap for default is to claim that if Congress does not pass a debt-limit increase by the exact date the administration demands, the stock market will crash and the economy will shrink.
White House chief economic adviser Austan Goolsbee has claimed that if Congress does not raise the debt ceiling, it would lead to a ???catastrophic??? economic event.
White House Press Secretary Jay Carney said it would be ???Armageddon-like??? if we do not raise the debt ceiling.
Administration officials are doing everything they can to shift blame away from their own trillion-dollar ideas, such as the failed stimulus and unconstitutional ObamaCare, to Republicans???because the latter dare to demand spending cuts.
Phase two is to shift culpability from the Treasury Department to Republicans in Congress if the Obama administration refuses to pay off debt obligations.
A senior White House official told Politico that the administration does not have any plans to pay debt holders if the limit is not increased.
It seems as if they are blaming their own incompetence on Republicans.
Senate Republicans have demanded a Balanced Budget Amendment and House Speaker John Boehner (R.-Ohio) has demanded $2 trillion in spending cuts for a $2 trillion increase in the debt limit.
How dare they.
It seems reasonable to conservatives to demand some cuts. Yet administration officials seem intent on getting what they want???or else they will default and blame Republicans.
Blocking Recess Appointments
In this period of divided government, the Obama administration has turned its attention to the use of executive power to accomplish its policy goals. But to do this, President Obama must have bureaucrats in place who are willing to carry out his big-government agenda. The Constitution requires Senate confirmation for all judges, senior executive positions, and those who sit on the most powerful boards and commissions. The good news is that Senate Republicans have shown a willingness to block some of the more radical nominees.
The bad news is that the President has shown a willingness to use his constitutional power of the recess appointment to load up his administration with radical leftists.
Under Article 2 of the Constitution, when the Senate adjourns for an extended period of time, the President can bypass the Senate and fill these vacancies with so-called ???recess appointments.???
President Obama used this power in the nomination of Craig Becker to the National Labor Relations Board and Donald Berwick as the administrator of the Centers for Medicare and Medicaid Services (CMS).
There is strong speculation that the next time Majority Leader Harry Reid (D.-Nev.) adjourns the Senate, the President will be prepared with a giant stack of nominees that he will appoint to key positions throughout the government to carry out his agenda for the remainder of his term.
At the end of President Bush???s term, Senate Majority Leader Harry Reid held fake ???pro-forma??? sessions every three days that completely blocked President Bush from making any recess appointments.
There is a way for conservatives in the House to block Obama’s power grab.
The Constitution states that ???Neither House, during the session of Congress, shall, without the consent of the other, adjourn for more than three days[.]??? The Senate cannot adjourn this summer without the permission of Speaker Boehner and the Republican-controlled house.
If the House refuses to pass an adjournment resolution, President Obama has no power to make recess appointments.
The House should use one of the few constitutional powers it has to block radical Obama recess appointments.
Senate Says No to Tax, Baby, Tax
Last week, the Senate rejected an effort to boost taxes on the oil industry. Many conservatives worried that increased taxes on energy producers would further increase gas prices at the pump.
The Senate also rejected an effort by some Republicans to push for expansion of oil exploration with conditions that some conservatives found a bridge too far. The bottom line is that the Senate did not agree to either the liberals??? idea to increase taxes on energy production or an idea to boost domestic oil production.
Washington needs to listen to the people and ???Drill, Baby, Drill.???