The solution to the debt ceiling crisis is staring us right in the face |
The United States is less than a month away from driving headfirst over the proverbial fiscal cliff. Unless the Republican-controlled House of Representatives passes a bill to increase the debt limit that is also acceptable to the Democrat-controlled Senate and the White House, the United States will, for the first time in its history, default on its debt. That would provoke a catastrophe, likely plunging the U.S. into recession. So the question on everyone's mind is: Can this calamity be avoided? No … and yes. Republicans and Democrats will almost certainly fail to craft a legislative compromise. Neither side wants to find agreement and even if one did, there is likely no deal that both sides could agree to. Instead, President Joe Biden must act unilaterally — perhaps by minting a $1 trillion platinum coin (unlikely) or choosing to simply ignore the debt limit and continue to borrow money (more likely). Whatever tactic he chooses, the burden will be on Biden to act — and ironically, all sides in Washington would benefit if he does. This is a preview of Michael A. Cohen's latest article. Read the full column here. |
