No deal: Obama warns of 'economic shutdown'

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In a setback to the protracted efforts to hammer out a deal to end the partial US Government shutdown and raise the debt ceiling, talks between President Barack Obama and House Republicans, led by Speaker John Boehner, ended without yielding an agreement.

Faced with the looming prospect of a debt default, President Barack Obama appealed to Congress to pass the budget while pushing Republicans to agree to hike the borrowing limit to prevent an "economic shutdown".

"let's pass a budget, put people back to work, and end this Republican shutdown. let's pay our bills, and prevent an economic shutdown," Obama said as the government shutdown entered its twelfth day.

Reports quoted Boehner as telling House Republicans on Saturday morning that President Obama had rejected their latest offer and focusing now on an alternative offer from Senate Republicans.

The development has more or less ended the chances of an early, weekend vote in the House, with members planning to go back to their districts and return on Monday. The leadership, however, would stay in Washington to deal with any new proposal.

There was no immediate White House comment on the subject. “I’m disappointed that the President has rejected the offer that we put on the table,” House Republican leader Eric Cantor said on Saturday morning. With the focus shifting to an alternative plan put forth by some Senate Republicans, Cantor was quoted by USA Today as saying: “I know that he (Obama) is trying to see which Republican senator he can pick off in the Senate. I hope that the Senate Republicans stand strong so we can speak with one voice.

Boehner informed the Republican caucus that the talks were at a standstill. CNN quoted Congressman Paul labrador, a Tea Party conservative, as saying after the meeting that “the President rejected our deal”.

Another Republican Congressman Adam Kinzinger commented that Obama would rather deal with the Senate since the House has a tougher negotiating position.

A third Republican lawmaker, Bill Flores, commented that Obama was “trying to talk to the Senate Republicans and trying to split them up so” that the Democrats “can jam a deal together.”

Senate Democratic leader Harry Reid also noted that talks between the White House and House Republicans were “done”. “What a sad day for America,” Reid said on the Senate floor, adding: “Each hour that goes by we are closer to a calamity for our country.”

The alternative Senate Republican proposal now in focus has been circulated by Senator Susan Collins, who is said to be working with senators of both parties on a budget framework that includes a six-month stopgap funding bill through March and a debt ceiling increase through January – instead of the six-week relief provided by the House Republican offer. 

If this plan were to gain traction and acceptance, it would suit President Obama a lot better. It, however, remains to be seen if House Republicans would go along with the idea of giving the administration more time.

Daily Pioneer
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