Debt Fight Could Give Obama More Budget Powers
Even if the Treasury were to pay bondholders while withholding other payments, does the GOP realize the authority they would be giving Obama over the entire budget?
Some Republicans suggest that there's no special need to worry about hitting the debt ceiling: after all the Treasury will still collect much more in revenue than it spends on interest payments. The Treasury can continue to pay bondholders while ceasing to pay other bills.
Do these Republicans understand that even assuming this idea were legally and technically feasible (which it is not), it would amount to handing President Obama recission authority over the entire federal budget?
Under this scheme, if feasible, could the president decide: OK then, I'll just stop paying Medicaid bills in states led by Republican governors?