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Can unilateral executive power usurp congressional limits on government spending?

*Financial Times, by Richard McGregor, January 14, 2013

”Democratic leaders in the Senate last week gave President Barack Obama the green light to sidestep Congress and take executive action to avoid a default if no agreement is reached.

The move may have raised pressure on the White House to consider creative action in the event that lawmakers fail to forge a compromise on lifting the country’s debt ceiling of $16.4tn by the end of next month.

Among the solutions that have been floated are a presidential invocation of the 14th amendment of the constitution — which says the debt of the US ‘shall not be questioned’ — in order to continue borrowing.
The White House could also simply decide tax and spending laws take precedence over the debt ceiling constraints if they are in conflict, and keep spending money.”

*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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