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 Firms Concerned About China's New Cyber Regulations

New rules would require technology companies doing business in financial sector to hand over their source code, adopt Chinese encryption algorithms More

WHO Focus on Ebola Shifts to Ending Outbreak

Focus to be less on building facilities and more on efforts to find infected people, manage their cases, engage with communities and ensure proper burials More

US Scientist Who Conceived of Groundbreaking Laser Technology Dies

Charles Townes, Nobel laureate, laser co-creator paved way for other scientific discoveries: CDs, eye surgery, metal cutters to name a few technologies that rely on lasers More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long-distance communication contains mostly sounds and pictures - for now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid