The president has repeatedly rejected any negotiations on either the debt ceiling or funding government operations. There were few signs of the stalemate breaking a week into a government shutdown and 10 days from when Treasury Secretary Jacob J. Lew says the U.S. will exhaust measures to avoid breaching the debt ceiling. The administration has warned that breeching the debt ceiling would have catastrophic consequences for the economy that would ripple across the globe. Stocks Decline As the deadlock over funding the government and raising the debt limit drags on, stocks extended losses from last week with the MSCI All-Country World Index (SPA) sliding 0.4 percent to 382.12 at 11:59 p.m.
Obama Says Boehner Is Bluffing: ‘Hold a Vote’
Though about 200 FEMA staff members were recalled from furlough some without pay to prepare for Tropical Storm Karen in the Gulf of Mexico, at least 100 of them will have to be refurloughed, Obama said. “Their job has been made more difficult,” Obama told FEMA employees, praising them for performing their duties under “less than optimal situations.” Noting that Tropical Storm Karen dissipated, Obama said, “We dodged a bullet there.” STORY: Shutdown enters second week, no end in sight Obama again called on the Republican-run House to pass student loan Obama a spending plan and raise the debt ceiling with no conditions. Congress must raise the $16.7 trillion debt ceiling before the government hits it Oct. 17. Otherwise, Obama said, the government will have to default on its debts. House Speaker John Boehner, R-Ohio, and other Republicans want to negotiate provisions to a spending and a debt ceiling bill, including a one-year delay in Obama’s health care plan.
Boehner, they said, was welcome to pass the debt ceiling increase in a way that gives him a talking point. But they reiterated that Obama would not be negotiating policy changes as part of deciding how the nation should pay for spending that Congress has already committed to and approved. Hes not going to sanction negotiations with any faction that are using the threat of default as a way of enacting policy in our democracy, Sperling said. The era of threatening default has to be over. The president strongly believes that if he were to sanction negotiating with those threatening to default, Sperling added, that would increase, not decrease, the chances that we as a country would undermine the nations creditworthiness. Furman said that a default would be terrible for the country. He noted that early this year, Boehner supported suspending the debt ceiling for several months and said he hoped that the speaker would take a similar step this time. He defused that brinksmanship, Furman said.
I believe there are the votes to pass a clean [continuing resolution], Pennsylvania Republican Rep. Charlie Dent said on CNN. Im going to insist the Speaker try to bring out a clean, continuing resolution. Speaking on the House floor later, Boehner said its Obama who is making the shutdown drag on. With a need to increase the debt ceiling or face major economic consequences looming just days away, Boehner said a senior White House official told him Monday that Obama would rather risk a sovereign debt default than negotiate over raising the borrowing limit. The presidents refusal to negotiate is hurting our economy and putting our country at risk, Boehner said.