There may be a false ceiling in the US Treasury – and not just any ceiling.

THE ceiling – the one that has been so vigorously debated in Washington for the last few months.

That’s right, the debt ceiling might becompletely irrelevant.

The United States has racked up $14 trillion in debt, around 97% of its GDP and alarmingly close to the statutory limit of $14.3 trillion established by Congress last year.

Fears that the government will not be able to issue debt to fund its programs have led to cantankerous shouting matches in Washington.

But all this shouting might be for nothing.

The answer can be found in Section 4 of the Fourteenth Amendment to the US Constitution, (which is mostly known for defining citizenship of the United States after the Civil War).

Section 4 of this amendment validates all US public debt, stating that it “…shall not be questioned”, in order to ensure that the US did not default.

In a Civil War context, this was meant to ensure faith in the US government after a crisis, and also to invalidate any debts taken by the Confederacy during the war.

Today however, it means that any debt issued by the Treasury must be considered valid under the Constitution, regardless of debt ceilings established by Congress.

There is no doubt that the United States must find a way to cut spending – but if push comes to shove and Republicans refuse to yield on debt reduction plans, it might not matter.