Whereas the obligations of the United States will exceed
the current statutory debt ceiling by August 2, 2011;
Whereas unless Congress sends to the President legislation
that would increase statutory borrowing authority, the United States will
default on its debts;
Whereas since its founding, the United States has not
defaulted on its debts;
Whereas the consequences of a default by the United States
on its obligations, or even the growing concern in the world markets about the
risk of such a default, could be catastrophic;
Whereas Moody’s Investors Service warned that it might
soon downgrade the credit rating of the United States because of mounting
concerns that the Government will default on its obligations. Moody’s stated,
The heightened polarization over the debt limit has increased the odds
of a short-lived default.
;
Whereas Budget Committee Chairman Paul Ryan said,
If a bondholder misses a payment for a day or two or three or four—what
is more important is you are putting the government in a materially better
position to better pay its bills going forward,
demonstrating that
Republican leaders in Congress may be willing to allow a default on the public
debt of the United States, notwithstanding the catastrophic economic impact of
such a default;
Whereas predicating an increase in the debt ceiling on
Congressional passage of a balanced budget amendment to the United States
Constitution all but ensures default;
Whereas in 1790, Alexander Hamilton wrote, For when
the credit of a country is in any degree questionable, it never fails to give
an extravagant premium, in one shape or another, upon all the loans it has
occasion to make. Nor does the evil end here; the same disadvantage must be
sustained upon whatever is to be bought on terms of future
payment.
;
Whereas at Hamilton’s urging, the United States paid all
Revolutionary War debts at face value and assumed all of the debts owed by the
States;
Whereas following the Civil War, the United States adopted
the 14th Amendment to the United States Constitution, section 4 of which reads,
The validity of the public debt of the United States, authorized by law,
including debts incurred for payment of pensions and bounties for services in
suppressing insurrection or rebellion, shall not be questioned.
;
Whereas in the depths of the Great Depression, the Supreme
Court said, The Constitution gives to the Congress the power to borrow
money on the credit of the United States. … Having this power to authorize the
issue of definite obligations for the payment of money borrowed, the Congress
has not been vested with authority to alter or destroy those
obligations.
Perry v. United States, 294 U.S. 330, 353 (1935);
Whereas failing to raise the debt ceiling, and allowing
the United States to default, would violate the clear command of section 4 of
the 14th Amendment; and
Whereas the President is obliged by his Oath of Office and
his duty take Care that the Laws be faithfully executed
to
prevent a default on the debts of the United States notwithstanding the failure
of Congress to do so: Now, therefore, be it
That it is the sense of Congress that the
President should—
(1)work with the
Congress to secure passage of an increase in the statutory debt ceiling;
(2)make clear that
under no circumstances will the United States fail to pay its debts on time and
in full;
(3)make clear that,
all other efforts failing, he will use his authority under section 3 of article
II, to uphold section 4 of the 14th Amendment to the United States Constitution
to ensure payment of all debts of the United States on time and in full;
and
(4)take any and all
actions necessary to preserve the full faith and credit of the United
States.