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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 68 Introduced in House (IH)]

112th CONGRESS
  1st Session
H. CON. RES. 68

Expressing the sense of Congress that the President should ensure that 
 the United States does not default on its debt by making every effort 
 to negotiate passage of an increase in the statutory debt ceiling or, 
 all such efforts failing, should use his authority under section 4 of 
 the 14th Amendment to the United States Constitution to pay all debts 
                 of the United States as they come due.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2011

    Mr. Nadler (for himself, Mr. Johnson of Georgia, Mr. Engel, Mr. 
   Ellison, Mr. Grijalva, and Mr. Garamendi) submitted the following 
concurrent resolution; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                         CONCURRENT RESOLUTION

 
Expressing the sense of Congress that the President should ensure that 
 the United States does not default on its debt by making every effort 
 to negotiate passage of an increase in the statutory debt ceiling or, 
 all such efforts failing, should use his authority under section 4 of 
 the 14th Amendment to the United States Constitution to pay all debts 
                 of the United States as they come due.

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 never 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 our public debt, 
        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 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 failure 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 obligated 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
    Resolved by the House of Representatives (the Senate concurring), 
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 the 4th clause of section 3 of article I, 
        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.
                                 <all>
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