The Wall Street Journal provides insights into President Biden’s potential options to avoid a U.S. default without congressional approval, as Democrats and Republicans struggle to agree on raising the debt ceiling. The video outlines three unconventional and risky methods: minting a trillion-dollar platinum coin, issuing premium bonds, and invoking the 14th Amendment. The analysis includes opinions from financial experts and former government officials, emphasizing the legal and economic uncertainties each option presents.
- Democrats and Republicans need to agree to raise the debt ceiling by early June to prevent a default.
- Three alternative methods for the White House to bypass Congress in avoiding a default were discussed, including minting a trillion-dollar platinum coin, issuing premium bonds, and invoking the 14th Amendment.
- The trillion-dollar coin idea is based on a legal loophole from the ’90s, but is considered unlikely and a “gimmick” by former Treasury Secretary Jason Furman and current Treasury Secretary Janet Yellen.
- Premium bonds involve reissuing bonds with a higher coupon rate, which could raise more money without technically creating new debt but could cause financial market chaos.
- The 14th Amendment suggests that the debt ceiling might be unconstitutional. This approach could buy time if financial markets believe in its validity, but it risks litigation and uncertainty.
- A discharge petition in the House could force a vote on raising the debt ceiling, but it’s a complex and time-consuming process that is unlikely to resolve the issue promptly.
- Financial experts and government officials agree that the best resolution is for Congress to act and raise the debt ceiling.
The Wall Street Journal is an American business and economic-focused international daily newspaper based in New York City. The Journal is published six days a week by Dow Jones & Company, a division of News Corp.
AllSides Media Bias Rating: Center
https://www.allsides.com/news-source/wall-street-journal-media-bias
Official website: https://www.wsj.com
Original video here.
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