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FBN’s Judge Andrew Napolitano discusses whether the amendment means the president can raise the debt ceiling without Congress’s backing.
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Studio with us right now all I judge ended -- out and -- -- I'm sorry guys how are what did you actually.
We -- to get to but I wanted to start we're talking about this in the break with the battle over raising the debt ceiling and the budget negotiations going on.
Outcomes.
People citing the fourteenth amendment and the possibility.
That they -- secretary Geithner could cite that.
In order to let him to continue to borrow money even if we hit the statutory debt limit and doesn't hold water.
While the fourteenth amendment just just to remind give a little bit of history as one of the post civil war amendments and it was intended to.
Assure.
That what the federal government spent a promise to pay its bills on that it would actually pay the bills in other words.
If if the government owes a debt it has to pay it doesn't say how it has to pay it or who -- to pay.
There's another part of the constitution says only the congress can raise taxes.
Borrow money.
And pay bills so to argue that the fourteenth amendment permits the president.
To supersede the congress and raise money borrowed money and pay bills on zone.
Not only is without historical precedent but there isn't even the remotest authority in the fourteenth amendment -- that this is a a ruse.
Perpetrated by the big government crowd that is basically saying at the congress doesn't let the president raise the debt ceiling.
It just go -- bar them on Amazon.
Who would lend money to the United States of America.
If the bonds were not sold pursuant to law we're just sold because the president but it doesn't album doesn't force.
Now -- the right -- but it doesn't.
It does it lead to congress wouldn't have to pay those debts in other words the it -- even if it doesn't.
-- forced the president to do it would congress have to pay those yes yes yes fourteenth -- -- whatever money the federal government knows relax the government will pay.
So now the administration is saying we don't raise the debt ceiling.
We're gonna default on our -- -- incursion aka pay your bills while the fourteenth amendment forces you to pay your bills so you pay your bills and right in those two when you -- Interest on bonds and principal on bonds first and then you run -- we don't keep borrowing money to do that.
Then -- where you could sell assets -- -- first avoid exactly exactly listen.
Half the Republicans in the congress were elected promising to reduce debt.
If this is a golden opportunity for them to say the president he can't borrow any more money.
-- keep borrowing money to pay back borrowed money.
You can't keep borrowing money to pay back interest on borrowed money you have to operate the government.
On the measly 250 billion a month that you collect he can't do that go get another job -- you think that the Republicans stand fast and saying no way -- I do I I do for a couple of reasons one the government is totally out of control and in that it 40% of what it -- is borrowed so it's addicted to debt.
Secondly interest payments of four and forty billion a year they're only gonna get worse as interest rates were borrowing.
And are requiring money.
To pay the interest -- that that debt pit that we're in is never gonna change you know this better than mine but you're gonna challenge financial markets certain percentage of what you earn.
It's killing it -- -- -- almost you're you're you're you're you're.
Taking the risk of bringing I huge financial event -- market related event that you don't have the doesn't have.
Have to happen what what the market related event -- that people have to park their cash what the federal government.
Or that they're worried that the cash they park not gonna get back the constitution I -- -- with a Wednesday they'll get it back.
And I also did know what it would be before above the Lehman Brothers weakened in 2008 and it was an absolute mess the following month when markets are surprised by something when your.
Assuming that something's gonna happen that doesn't happen.
It's a big risk to take is all I'm saying is that.
What are the -- -- united I don't and the way the treasury markets are acting their Darius nobody out there -- loaning the federal government money today.
Or who holds that dead today who thinks they're all bad debt ceiling is -- -- all of -- -- government's thinking and fearing that they're not gonna get paid back of course not the federal government has never -- it failed.
To pay back the money at take -- to say to return money loaned to it courses that have been out of debt in the past hundred -- I think the Republicans will -- Because I think that there there basically big government people who will buy the argument that the government can't operate without debt and capital that the public will -- -- gonna -- and with control of one of the houses of congress.
Yeah if -- Stephen -- -- -- really interesting issue writing on the Wall Street Journal about the fourteenth amendment issue he said but wouldn't it be great.
That if they just let the president.
Continue to borrow money without raising the -- so named because then there were Democrats don't have to take he might mean not that -- -- -- -- and neither -- -- all of.
Had an interest and political argument look they'll come up with some kind of a deal.
But for the sound money people of which I am one now the concept of the government living within its its means is is too good to be true.
And now is the opportunity to do it if ever Republican.
Votes against raising the debt ceiling it doesn't go up.
Two things judged got to go one is freedom watch is every night at 8 PM on the Fox Business Network.
And the other thing is there's a new show on Fox News Channel called the five axis of starts next week -- you're going to be.
Point of people and -- -- well there's you know -- rotating through on the five minutes sort of a very very lively aggressive talk show about everything under the sun by TM real characters it.
I have Fiat can line -- XE and if you think Generale where it's.
God almighty while I -- that -- -- back whatever he wants them.
-- later this.
