News / USA

Obama: US Must Avoid Economic Consequences of Default

President Barack Obama speaks about the the budget and the partial government shutdown, Oct. 8, 2013, at White House.
President Barack Obama speaks about the the budget and the partial government shutdown, Oct. 8, 2013, at White House.
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VOA News
Regarding this week's meetings with congressional members about the political stalemate on government funding and borrowing, U.S. President Barack Obama said there was one agreement: "the need to avoid the economic consequences of not meeting [the] country's commitments."

The president said in his weekly address Saturday damage to the country's "sterling credit rating" would make it more expensive for everyone in America to borrow money, creating what would amount to what he called a "Republican default tax on every family and business in America." He said a default would also have a detrimental effect on global markets.

However, White House officials said Friday there is still no agreement with Republicans on how to end the stalemate. Both sides have agreed to keep talking.

House Armed Services chairman Buck McKeon, who delivered the Republican address, said the two sides had found "common ground" this week with legislation supporting the military and their families during the shutdown, and now should continue to work out more agreements.

Watch related video story by VOA's Carla Babb

US Government Shutdown Enters 12th Dayi
X
October 12, 2013
The partial U.S. government shutdown enters its 12th day Saturday. But on Friday, lawmakers and President Obama seemed to make progress, by sitting down and talking to each other. VOA's Carla Babb has more.

Meanwhile, three of the most famous U.S. national parks - the Statue of Liberty, the Grand Canyon and Mount Rushmore - have announced they will reopen in the coming days after state governors reached deals with the federal government, despite the ongoing government shutdown. The states have agreed to provide the money needed to operate the parks.

Back in Washington, both sides have refused to divulge specific details of what is being discussed as they look for a way to end the partial government shutdown that began October 1 and increase the country's $16.7 trillion borrowing limit. The United States has said it will have only limited funds left to pay its bills when it reaches the borrowing cap Thursday.

Finance chiefs of the world's leading economies urged the United States Friday to quickly resolve the stalemate. The G20 finance ministers meeting in Washington said the U.S., with the world's largest economy, "needs to take urgent action to address short-term fiscal uncertainties."

Republicans in the House of Representatives have offered to increase the debt ceiling through November 22, while looking to negotiate more spending cuts with the White House over the next six weeks.

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by: Dr.Lilian Kindcrotch from: Location
October 13, 2013 12:21 PM
The Democrat VS Republican paradigm is DEAD. The new reality is patriot VS Tyranny.


by: Janet Fig from: USA
October 13, 2013 11:55 AM
EVERYTHING IS OK.


by: Fascism from: USA
October 13, 2013 11:54 AM
The answer to 2013 is 1776.


by: KOhona from: Japan
October 13, 2013 1:56 AM
What is The TEA PARTY?


by: Tim from: wa
October 12, 2013 9:08 PM
Why should the united states make cuts instead of making new revenue? I don't get the thinking. We as a nation have the ability to make something out of nothing. What we need to do is create a system of sin. If we create a place in every state-city to let everything illegal, bunny ranches, drugs, gambling... legal for a temporary time and heavily tax it. Tell me the taxes from this exercise wouldn't be create enough money for bail out and I may just chuckle at your response! All in all Do not cut, generate funds! Im just saying if every drug dealer big and small, combine their sales of illegal drugs... It would exceed trillions of dollars, sad but true... or the government should just sell or give for payments or technology that is underground, the technology we the people do not even know of... why cut? Why not generate? My Ideas are out there, maybe not sound? But If everyone could just bring an Idea to the table we would not be in this state.


by: Bird from: California
October 12, 2013 8:05 PM
Some one needs to give the Republicans a dictionary. They keep complaining about a lack of negotiation but I don't think they know the meaning of the word. To negotiate means to propose something and then listen to the return offer which won't be exactly what you were hoping for. It is a give and take with both sides giving something up. It is never done with threats. I keep hearing interviews with Republicans in the House saying we made a proposal and Obama didn't accept it. He won't do what we say so he is not negotiating. Would someone in DC hand them a dictionary with the right page bookmarked? Thanks.


by: Junill from: Out of US
October 12, 2013 8:00 PM
I cannot understand why debt ceiling is limited by politicians. Also US gov. must loose their spending little bit to make a healthy financials.
Don't take the world in a crisis please.


by: Common Sense Guy from: Los Angeles
October 12, 2013 7:53 PM
The current shut down (clearly) is an emotional issue. One that has people commenting and pontificating from a platform of emotions and not facts or common sense. The President of the leader of the free world. True leaders lead by example and deeds. A true leader would see the acrimony and damage happening to our great country and bring people together. Not name calling. Not throwing darts and false acquisations. Mr Obama could learn some valuable lessons from Bill Clinton and Ronald Reagan. Both adminstrations had shut downs. Both Presidents were leaders. Both were great communicators. Something our current president is unable to get a grasp on. Both Dems and Republicans are standing off in their corners. Obama should lead and united. Not divide. We have a major league spending and debt problem that is out of control. I'm still sidelined waiting for the Dems to come to the same conclusion and say......."you know, maybe we should take a second look at this out of control spending and compromise on something, vs. just saying no, no, no to every idea coming from across the aisle"". That will happen when pigs fly.

In Response

by: Amy Newman
October 12, 2013 8:12 PM
How about we start with the anti-government TeaTaliban not shutting the government down. Obama should be demanding a public option - he should not have to defend the Republican made Obamacare (Ironic that they name there own plan after Obama...just because now he's the one pushing for it.) Republicans could be true leaders...with the first step having them act like adults.


by: creepy from: california
October 12, 2013 7:26 PM
The Tea Party shut down the government, not Obama.

You don't know what you were talking about.

In Response

by: Amy Newman
October 12, 2013 8:08 PM
This is 110% a Republican shut down. They shut it down in attempt to de-fund Obamacare for literally the 40th time. People like "Pope" are just wearing the normal thick tin foil of the Republican base. Amazing how they can't even take credit for the things they do. They shut the government down now take responsibility for it.

In Response

by: Pope from: California
October 12, 2013 7:43 PM
Obama shut down the government, not the Tea Party.

You don't know what you are talking about.


by: ali baba from: new york
October 12, 2013 4:15 PM
if the debt is getting out of control , we are going in default .earlier is a better. stop finance a program that we can not afford like

In Response

by: creepy from: california
October 12, 2013 7:22 PM
Who created that stupid debt ceiling in the first place?

Everyone in congress is incompetent. They should all be fired!

In Response

by: Name from: Location
October 12, 2013 5:09 PM
Excellent grammar. Keep up the good work!
EVERYTHING IS OK.

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