News / USA

Senate Leaders Optimistic About Reaching Deal on Debt Ceiling, Shutdown

Senate Leaders Optimistic About Debt/Shutdown Deali
X
October 14, 2013 11:25 PM
A White House meeting with congressional leaders was postponed Monday afternoon to give negotiators more time to work out a plan to avert a default on the nation's debt and end the partial government shutdown. Analysts warn failure to resolve the budget and borrowing issues by Thursday could have serious ramifications for the US and global economy. Mil Arcega brings us up to date.
A White House meeting with congressional leaders was postponed Monday afternoon to give negotiators more time to work out a plan to avert a default on the nation's debt and end the partial government shutdown.  Analysts warn failure to resolve the budget and borrowing issues by Thursday could have serious ramifications for the US and global economy. 

The clock is ticking closer to the Thursday deadline after weekend negotiations failed to produce a compromise.  

On Monday, President Obama spent part of his day at a Washington food pantry, thanking volunteers - some of them furloughed government workers.

“This week we’ll be entering into the third week of a government shutdown that was completely unnecessary," said President Obama.

But by Monday afternoon, Senate Majority Leader Harry Reid and his Republican counterpart, Mitch McConnell, said a deal was within reach.

“I’m very optimistic we will reach an agreement that’s reasonable in nature this week to reopen the government, pay the nation’s bills and begin long term negotiations to put our country on sound fiscal footing," said Reid.

“We’ve had an opportunity over the last couple of days to have some very constructive exchanges of views about how to move forward.  Those discussions continue, and I share his optimism that we’re going to get a result that will be acceptable to both sides," said McConnell.

But while Republicans appear to have given up hope of defunding President Obama's health care reform, Democrats are now pushing for an end to spending cuts brought on by the earlier "sequester."  

Without a deal soon to raise the nation’s $16.7 trillion dollar debt ceiling, some economists say the fallout could be disastrous.  

Yahoo Finance editor Rick Newman says no one knows for sure.

“I think that’s going to trigger a kind of chain reaction in financial markets that’s extremely unpredictable.  Nobody knows what will happen if you suddenly have to call into question the viability of Treasury securities," said Newman.

Yale professor Robert Schiller, one of three Americans awarded the Nobel prize for economics, acknowledged the debt and shutdown are  more political than economic, but he said a breakthrough is possible.

“It’s my sense that we still have in this country a sense of cooperation that will emerge and prevent a default," said Schiller.

Less certain though is whether an agreement reached in the Senate will win support in the Republican-led House of Representatives.

Treasury Secretary Jack Lew says unless the U.S. debt ceiling is raised, the government will be left with a limited revenue stream and only about $30 billion on hand.  That means it would quickly run out of cash for major pension or health care payments. And it  would have difficulty paying out government bonds when they mature.

You May Like

US Investors Eye IPO for China's Alibaba

E-commerce giant handled 80 percent of China's online business last year, logging more Internet transactions than US-based Amazon.com and eBay combined More

Video Uneasy Calm Settles Over Israel, Gaza Strip

As cease-fire begins, Palestinians celebrate in streets; Israelis remain wary More

Video Chinese Doctors Use 3-D Spinal Implant

In treatment of a 12-year-old boy Chinese doctors used a 3-D printer and special software to create an exact replica of vertebra More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Chinese Doctors Use 3-D Spinal Implanti
X
August 27, 2014 4:53 PM
A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. VOA News reports from Kolkata.
Video

Video Northern California Quake: No Way to Know When Next One Will Hit

A magnitude 6.0 earthquake rocked northern California’s Napa Valley on Sunday. Roads twisted and water mains burst. It was the wine country’s most severe quake in 15 years, and while hospitals treated many people, no one was killed. Arash Arabasadi has more from Washington on what the future may hold for those residents living on a fault line.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.
Video

Video Ukraine: Captured Troops Proof of Russian Role in Separatist Fight

Ukrainian officials say they have captured Russian soldiers on Ukrainian territory -- the latest accusation of Moscow's involvement in the conflict in eastern Ukraine. VOA's Gabe Joselow reports from the Ukrainian side of the battle, where soldiers are convinced of Russia's role.
Video

Video Rubber May Soon Come From Dandelions

Synthetic rubber has been around for more than a century, but quality tires for cars, trucks and aircraft still need up to 40 percent or more natural rubber content. As the source of natural rubber, the rubber tree, is prone to disease and can be affected by bad weather. So scientists are looking for replacements. And as VOA’s George Putic reports, they may have found one in a ubiquitous weed.
Video

Video Jewish Life in Argentina Reflected in Yiddish Tango

Jewish people from across Europe and Russia have been immigrating to Argentina for hundreds of years. They brought with them dance music that were eventually mixed with Argentine tango. The result is Yiddish tango -- a fusion of melodies and cultural experiences that is still evolving today. Elizabeth Lee reports from the Skirball Cultural Center in Los Angeles, where one band is bringing Yiddish tango to an American audience.

AppleAndroid