Will Obama simply declare that the US will borrow as much as it needs to pay its bills, relying on the 14th amendment to justify the move? The 14th amendment states that the US debt "shall not be questioned." Many interpret that clause as making it impossible for the US to default, that if congress doesn't act to raise the debt ceiling, the executive branch is obligated to do it for them. Not surprisingly, the GOP takes a dim view of that theory. But it is just one of a series of actions that the Treasury Department is contemplating if the August 2 deadline established by Geithner passes without action. Reuters: There has been growing speculation in Washington in recent days that the administration could use the amendment to ignore the congressionally imposed limit on the amount of money the United States can borrow. "Despite suggestions to the contrary, the 14th Amendment is not a failsafe that would allow the government to avoid defaulting on its obligations," said White...(Read Full Post)