12 key points to consider on the debt ceiling and the markets
Is invoking the 14th Amendment a viable option?
Invoking the 14th Amendment (effectively saying that validity of government debt, authorized by law, shouldn’t be questioned) to resume government borrowing seems far less feasible because this interpretation raises constitutional issues likely to trigger a drawn-out legal challenge. The government could find more solid legal ground if it uses the amendment to prioritize government interest payments, perhaps one course of action if Congress cannot come to an agreement before Treasury funding runs out.
Wells Fargo Investment Institute said it viewed several other alternatives as very unlikely, such as Treasury minting a $1 trillion platinum coin or using premium Treasury bonds with interest rates high enough to boost government revenues as prices are bid higher at Treasury auctions.