No, He’s Not Kidding

This is what passes for scholarly thought in Obama’s post-common sense America.

CNN Money: Latest debt ceiling fix-it: IOUs

Edward Kleinbard, a tax and legal scholar, has offered up a contingency plan he thinks President Obama could adopt without causing a constitutional crisis if Congress pushes the country to the brink of default: Issue IOUs that can be sold and traded in private markets.

[…]

To avert the potentially catastrophic result of defaulting on U.S. bonds, the Treasury Department would continuing paying all interest owed on the federal debt in full and on time.

But other people and companies owed money by the government would be paid partly in cash and partly with IOUs called “scrip.”

Deck chairs, RMS Titanic, some shuffling required.

And, when, you might ask, will these debts be repaid?

The IOUs, or registered warrants, would be paid as soon as Treasury had enough funds on hand to do so.

Also known as never.

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