If Congress fails to raise the debt limit, the options dwindle quickly. Some commentators have called for the minting of what’s been dubbed a “magic coin” for a large denomination such as $1 trillion. Others say the president could cite the 14th Amendment to argue that the debt limit is unconstitutional. (The amendment says “the validity of the public debt … shall not be questioned.”)
But the Obama administration has voiced opposition and skepticism regarding these ideas. On Oct. 8, the president said such ploys could leave the issue tied up in court and would do little to reassure investors about America’s fiscal politics.
The only good solution, the Treasury secretary says, is for Congress to raise the debt limit.
