If the debt ceiling is not raised before default….is that Obama’s moment to issue an executive order raising it himself? Some think so:
More to the point, such an action would be self-enforcing once issued. President Obama would look like a strong leader, guiding the nation out of an impending disaster. And once the debt ceiling was raised, Congress would be put in the position of needing to assemble a majority in both the House and the Senate willing to vote on record to undo the President’s actions, and thus ensuring default. In other words, Congress would need to take positive action to ensure an economic crisis. Such an act would be political suicide.
I’d have to agree. Obama would get a boost in the short term looking like the adult in this process and box the GOP in again by forcing them to actively push the nation into default to stop him. Of course, this would play into the Obama is a dictator meme from many on the right and we’d likely still take a credit rating hit. But I’d rather have that than a full default. I think Obama has this as a Plan B he smartly disavowed as to not encourage a default onto his doorstep. Stay tuned.