How would it play out if the Treasury decided to ignore the debt-ceiling outright, and continue to service the national debt? Imagine a policy that says, "In accordance with the Fourteenth Amendment, we will continue to pay bondholders their due monies" or something like that.
I don't think the 14th amendment gives the Treasury that power, but that's not what I'm asking. Imagine they decide to interpret it that way. The Supreme Court rules against them. They ignore the Court and continue to pay.
What happens then?
I guess what I'm getting at is: what is worse, a Constitutional Crisis? Or a default on our debt? To me it seems like the better outcome would be to ignore the Court altogether on this issue.
(I'm sure I'm making naive assumptions in this questions. Let me know!)
How would it play out if the Treasury decided to ignore the debt-ceiling outright, and continue to service the national debt? Imagine a policy that says, "In accordance with the Fourteenth Amendment, we will continue to pay bondholders their due monies" or something like that.
I don't think the 14th amendment gives the Treasury that power, but that's not what I'm asking. Imagine they decide to interpret it that way. The Supreme Court rules against them. They ignore the Court and continue to pay.
What happens then?
I guess what I'm getting at is: what is worse, a Constitutional Crisis? Or a default on our debt? To me it seems like the better outcome would be to ignore the Court altogether on this issue.
(I'm sure I'm making naive assumptions in this questions. Let me know!)