Two ways to raise the debt ceiling without Congress

The Chairman of the Federal Reserve can waive the Federal Reserve Act’s prohibition against the Fed lending directly to the treasury.

The Secretary of the Treasury can hold the 14th Amendment as the overriding instruction as it says that ” the debt of the United States government, lawfully issued,  shall not be questioned.”

Each would risk being impeached or fired.

But it is expected that one of them would take the risk considering the alternative.

So when you hear all the bluster from both sides before the 17th, keep this in mind. They are counting on being bailed out.   They want to look tough, but they are really not tough at all.  

They are just compensating for being horrible negotiators.


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