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

    Republicans Struggle With Reality of Trump Nomination

    Despite calls for unity by presumptive presidential nominee, analysts see inevitable fragmentation of party ahead of November election and beyond

    Nielsen's, Sina Weibo Team Up for Closer Look at Chinese Social Media

    US-based rating agency reaches deal with China's Twitter-like service to gauge marketing effectiveness on platform which has more than 200 million users

    Despite Cease-fire, Myanmar Landmine Scourge Goes Unaddressed

    Myanmar has third-highest mine casualty rate in the world, according to Landmine and Cluster Munition Monitor, which says between 1999 to 2014 it recorded 3,745 casualties, 396 of whom died

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Press Freedom in Myanmar Fragile, Limitedi
    X
    Katie Arnold
    May 04, 2016 12:31 PM
    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Press Freedom in Myanmar Fragile, Limited

    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Taliban Threats Force Messi Fan to Leave Afghanistan

    A young Afghan boy, who recently received autographed shirts and a football from his soccer hero Lionel Messi, has fled his country due to safety concerns. He and his family are now taking refuge in neighboring Pakistan. VOA's Ayaz Gul reports from Islamabad.
    Video

    Video Major Rubbish Burning Experiment Captures Destructive Greenhouse Gases

    The world’s first test to capture environmentally harmful carbon dioxide gases from the fumes of burning rubbish took place recently in Oslo, Norway. The successful experiment at the city's main incinerator plant, showcased a method for capturing most of the carbon dioxide. VOA’s Deborah Block has more.
    Video

    Video EU Visa Block Threatens To Derail EU-Turkey Migrant Deal

    Turkish citizens could soon benefit from visa-free travel to Europe as part of the recent deal between the EU and Ankara to stem the flow of refugees. In return, Turkey has pledged to keep the migrants on Turkish soil and crack down on those who are smuggling them. Brussels is set to publish its latest progress report Wednesday — but as Henry Ridgwell reports from London, many EU lawmakers are threatening to veto the deal over human rights concerns.
    Video

    Video Tensions Rising Ahead of South China Sea Ruling

    As the Philippines awaits an international arbitration ruling on a challenge to China's claims to nearly all of the South China Sea, it is already becoming clear that regardless of which way the decision goes, the dispute is intensifying. VOA’s Bill Ide has more from Beijing.
    Video

    Video Painting Captures President Lincoln Assassination Aftermath

    A newly restored painting captures the moments following President Abraham Lincoln’s assassination in 1865. It was recently unveiled at Ford’s Theatre in Washington, where America’s 16th president was shot. It is the only known painting by an eyewitness that captures the horror of that fateful night. VOA’s Julie Taboh tells us more about the painting and what it took to restore it to its original condition.
    Video

    Video Elephant Summit Results in $5M in Pledges, Presidential Support

    Attended and supported by three African presidents, a three-day anti-poaching summit has concluded in Kenya, resulting in $5 million in pledges and a united message to the world that elephants are worth more alive than dead. The summit culminated at the Nairobi National Park with the largest ivory burn in history. VOA’s Jill Craig attended the summit and has this report about the outcomes.
    Video

    Video Displaced By War, Syrian Artist Finds Inspiration Abroad

    Saudi-born Syrian painter Mohammad Zaza is among the millions who fled their home for an uncertain future after Syria's civil war broke out. Since fleeing Syria, Zaza has lived in Lebanon, Egypt, Jordan and now Turkey where his latest exhibition, “Earth is Blue like an Orange,” opened in Istanbul. He spoke with VOA about how being displaced by the Syrian civil war has affected the country's artists.
    Video

    Video Ethiopia’s Drought Takes Toll on Children

    Ethiopia is dealing with its worst drought in decades, thanks to El Nino weather patterns. An estimated 10 million people urgently need food aid. Six million of them are children, whose development may be compromised without sufficient help, Marthe van der Wolf reports for VOA from the Metahara district.
    Video

    Video Little Havana - a Slice of Cuban Culture in Florida

    Hispanic culture permeates everything in Miami’s Little Havana area: elderly men playing dominoes as they discuss politics, cigar rollers deep at work, or Cuban exiles talking with presidential candidates at a Cuban coffee window. With the recent rapprochement between Cuba and United States, one can only expect stronger ties between South Florida and Cuba.
    Video

    Video California Republicans Weigh Presidential Choices Amid Protests

    Republican presidential candidates have been wooing local party leaders in California, a state that could be decisive in selecting the party's nominee for U.S. president. VOA's Mike O’Sullivan reports delegates to the California party convention have been evaluating choices, while front-runner Donald Trump drew hundreds of raucous protesters Friday.
    Video

    Video ‘The Lights of Africa’ - Through the Eyes of 54 Artists

    An exhibition bringing together the work of 54 African artists, one from each country, is touring the continent after debuting at COP21 in Paris. Called "Lumières d'Afrique," the show centers on access to electricity and, more figuratively, ideas that enlighten. Emilie Iob reports from Abidjan, the exhibition's first stop.

    Special Report

    Adrift The Invisible African Diaspora