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Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by PeterisP on Tuesday November 07, 2023 @03:38PM (#38182488)
For starters, the supreme court would not do anything until (unless!) someone challenges the treasury ruling, and there would inevitably be some nontrivial time gap between the two sentences in your scenario of "Imagine they decide to interpret it that way. The Supreme Court rules against them." during which they would pay out the funds.

But after a binding ruling is issued, I'd assume there would be personal sanctions, liability and likely criminal charges against any individuals involved in defying that decision.

Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by eli on Tuesday November 07, 2023 @03:53PM (#38182673)
That seems like a dodge. There is always someone willing to challenge anything the federal government does. It would be entirely up to the Court how quickly they'd want to hear the case. It could be immediate if they want.
Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by ndriscoll on Tuesday November 07, 2023 @03:53PM (#38182677)
> I'd assume there would be personal sanctions, liability and likely criminal charges against any individuals involved in defying that decision.

The president would almost certainly not want to take responsibility for the resulting economic implosion, and would order the executive to ignore the court ruling. Then it comes down to a mix of loyalties and individuals' beliefs around what would cause the least damage.

It's far more likely that a ruling like that would be the end of the court's power.

Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by ProjectArcturis on Tuesday November 07, 2023 @04:18PM (#38182990)
Yes, in practice a ruling like this might remind everyone that there is no clause in the Constitution giving the Supreme Court the power to review the other branches' actions. They grabbed that power themselves in Marbury v Madison.
Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by wolverine876 on Tuesday November 07, 2023 @04:07PM (#38182842)
> But after a binding ruling is issued, I'd assume there would be personal sanctions, liability and likely criminal charges against any individuals involved in defying that decision.

That's not accurate:

Power in the US government is of course separated between the legislative, executive, and judicial branches, and each has checks and balances on the other two.

One check the executive has on the judicial is to ignore its rulings. The executive can't do it all the time, obviously, and afaik the US also generally embraces 'judicial supremacy', the idea that the judicial branch generally gets the last word. Also, I don't recall the judiciary sanctioning indiviuals in the executive branch, but I could be wrong. I would guess they've never sanctioned a president.

Perhaps the most famous use of this power was in Worcester v. Georgia; when his favored side lost the case, President Andrew Jackson, reputedly said, "[Chief Justice] John Marshall has made his decision; now let him enforce it." (Inspiring rhetoric, but it led eventually to Native Americans having their land stolen and many being marched to their deaths.)

Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by JumpCrisscross on Tuesday November 07, 2023 @04:39PM (#38183243)
> I don't recall the judiciary sanctioning indiviuals in the executive branch

Every time someone in the executive has been held in contempt of court in relation to (but usually exceeding) their official duties, the judiciary sanctioned individuals in the executive branch.

Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by wolverine876 on Tuesday November 07, 2023 @05:22PM (#38183839)
That's right. Somehow I wasn't thinking of it.
Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by tonyarkles on Tuesday November 07, 2023 @04:15PM (#38182949)
Presumably “contempt of court” would apply here, which could definitely be applied to the individuals running the bank.
Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by eli on Tuesday November 07, 2023 @05:08PM (#38183672)
So would the President's pardon power
Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by tonyarkles on Tuesday November 07, 2023 @08:48PM (#38185719)
That'd be a sight to behold all around! A presidential pardon for someone found in contempt by the supreme court.
Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by FireBeyond on Tuesday November 07, 2023 @10:48PM (#38186531)
I don't think a pardon applies to contempt, as it's not a conviction, but a judicial process.