Powered by The Atlanta Journal-Constitution

Web Search by YAHOO!
 

Updated: 10:35 p.m. Thursday, Oct. 3, 2013 | Posted: 10:34 p.m. Thursday, Oct. 3, 2013

Budget, debt unresolved on shutdown's 3rd day

  • comment(4)

Related

Obama, Hill leaders fail to solve shutdown impasse photo
House Minority Leader Rep. Nancy Pelosi, D-Calif., left, with Senate Majority Leader Sen. Harry Reid, D-Nev., speaks to reporters following a meeting with President Barack Obama and the Republican leadership at the White House in Washington, Wednesday, Oct. 2, 2013. Obama and congressional leaders met at the White House on the second day of a partial government shutdown. (AP Photo/Manuel Balce Ceneta)
Shutdown in 3rd day with Obama, Hill at impasse photo
President Barack Obama speaks about the government shutdown and debt ceiling during a visit to M. Luis Construction, which specializes in asphalt manufacturing, concrete paving, and roadway reconstruction, Thursday, Oct. 3, 2013, in Rockville, Md. (AP Photo/Charles Dharapak)
Shutdown in 3rd day with Obama, Hill at impasse photo
President Barack Obama speaks about the government shutdown and debt ceiling during a visit to M. Luis Construction, which specializes in asphalt manufacturing, concrete paving, and roadway reconstruction, Thursday, Oct. 3, 2013, in Rockville, Md. (AP Photo/Charles Dharapak)
Shutdown in 3rd day with debt trouble looming photo
A U.S. Capitol police officer lies on the steps of the Senate with a gun drawn in response to a report of shots fired Thursday, Oct. 3, 2012. A police officer was reported injured after gunshots at the U.S. Capitol. They locked down the entire complex, at least temporarily derailing debate over how to end a government shutdown. (AP Photo/The Tampa Bay Times, Alex Leary) TAMPA OUT; CITRUS COUNTY OUT; PORT CHARLOTTE OUT; BROOKSVILLE HERNANDO OUT; USA TODAY OUT; MAGS OUT
Budget, debt unresolved on shutdown's 3rd day photo
This image from video provided by Alhurra Television shows police with guns drawn surrounding a black Infiniti near the U.S. Capitol in Washington, Thursday, Oct. 3, 2013. A woman with a young child inside tried to ram through a White House barricade, then led police on a chase toward the Capitol, where police shot and killed her, witnesses and officials said. (AP Photo/Alhurra Television)

By JIM KUHNHENN

The Associated Press

WASHINGTON —

Three days into a government shutdown, President Barack Obama pointedly blamed House Speaker John Boehner on Thursday for keeping federal agencies closed, while the bitter budget dispute moved closer to a more critical showdown over the nation's line of credit. The president canceled a trip to Asia to remain in the capital as the Treasury warned of calamitous results if Congress fails to raise the debt limit.

Answering Obama, Boehner complained that the president was "steamrolling ahead" with the implementation of the nation's new health care law. As the government operated sporadically, the stock market sank to its lowest level in nearly a month.

The shutdown was clearly leaving its mark. The National Transportation Safety Board wasn't sending investigators to Tennessee to probe a deadly church bus crash that killed eight people and sent 14 others to the hospital. The Labor Department said it wouldn't release the highly anticipated September jobs report on Friday because the government remains shuttered.

Late Thursday, the White House announced that Obama was abandoning an already abbreviated trip to Indonesia and Brunei next week in the face of the shutdown. White House spokesman Jay Carney said Secretary of State John Kerry would travel instead.

Earlier, outside the Capitol, shots rang out at midafternoon bringing an already tense Congress under lockdown, a nerve-wracking moment in a city still recovering from a Sept. 16 mass shooting at the Navy Yard. Authorities and witnesses said a woman tried to ram her car through a White House barricade then led police on a chase that ended in gunfire and her death outside the Capitol more than 1 mile away.

Despite the heated political rhetoric, some signs of a possible way out of the shutdown emerged. But the state of play remained in flux.

Two House Republicans said Boehner told them he would allow a House vote on restarting the entire government — but only if conservative GOP lawmakers assured him they would not attack it for failing to contain curbs on the health care law. So far they have been unwilling to give that commitment. The two spoke on condition of anonymity to reveal details of private discussions.

The shutdown and the approaching debt ceiling were merging into one confrontation, raising the stakes for the president and Congress as well as for the economy.

Obama and his Treasury Department said that failure to raise the nation's borrowing limit, expected to hit its $16.7 trillion cap in mid-October, could precipitate an economic nosedive worse than the Great Recession. A default could cause the nation's credit markets to freeze, the value of the dollar to plummet and U.S. interest rates to skyrocket, according to the Treasury report.

Obama catalogued a litany of troubles that could be caused by the failure to raise the debt ceiling, from delayed Social Security and disability checks to worldwide economic repercussions. "If we screw up, everybody gets screwed up," he said.

The speaker's office reiterated Boehner's past assertion that he would not let the United States default on its debt. "But if we're going to raise the debt limit, we need to deal with the drivers of our debt and deficits," his spokesman, Michael Steel, said. "That's why we need a bill with cuts and reforms to get our economy moving again."

Conservatives have insisted that either reopening the government or increasing the debt ceiling must be accompanied by a measure that either delays or defunds the nation's new health care law. Absent those concessions, Republicans want cuts in spending, savings in major benefit programs and an overhaul of the tax system.

Obama, for his part, firmly restated his opposition to a negotiation.

"You don't get to demand some ransom in exchange for keeping the government running," he said tartly. "You don't get to demand ransom in exchange for keeping the economy running."

Looking to deflect the Democratic finger-pointing on the shutdown, the Republican-controlled House pushed a pair of bills through the House on Thursday restoring money to veterans' programs and to pay National Guard and Reserve members. House leaders also have scheduled a vote on legislation backed by some of the chamber's top Democrats to give federal workers furloughed in the ongoing partial shutdown their missed pay when the government reopens.

That vote could come as early as Friday or over the weekend.

Senate Democrats made clear they will not agree to reopening the government on a piecemeal basis. "You can't fall for that legislative blackmail or it will get worse and worse and worse," said Sen. Chuck Schumer of New York.

Speaking at a construction company in Washington's Maryland suburbs Thursday, Obama cast Boehner as a captive of a tight group of conservative Republicans who want to extract concessions in exchange for passing a short-term spending bill that would restart the partially shuttered government.

"The only thing preventing people from going back to work and basic research starting back up and farmers and small business owners getting their loans, the only thing that is preventing all that from happening right now, today, in the next five minutes is that Speaker John Boehner won't even let the bill get a yes or no vote because he doesn't want to anger the extremists in his party," Obama said.

Senate Majority Leader Harry Reid, D-Nev., was even more pointed in singling Boehner out.

"We can't perform the most basic functions of government because he doesn't have the courage to stand up to that small band of anarchists," he said.

Moderate Republicans have said they think they could provide enough votes to join with minority Democrats and push a bill through the House reopening the government with no restrictions on the health care law. But under pressure from House GOP leaders, they failed to join Democratic efforts on Wednesday aimed at forcing the chamber to consider such legislation.

Rep. Tom Cole, R-Okla., who is close to Boehner, said he doesn't think the speaker is ready to push any measure that would fail to win the backing of most of his 232 House Republicans. But some Democratic votes eventually will be needed in the 435-seat chamber, Cole said, because some hard-core conservative Republicans are unlikely to vote to end the shutdown or raise the debt ceiling without major concessions from Obama.

"You can't ask those Republicans to just put their political life on the line for nothing," he said. "They've got to be able to go home and say 'These are the things that I was able to do.'"

Even the Senate chaplain got drawn into the rising intensity of the partisan battle, opening Thursday's session with an unusually pointed prayer.

"Deliver us from the hypocrisy of attempting to sound reasonable while being unreasonable," said Dr. Barry Black. "Remove the burdens of those who are the collateral damage of this government shutdown."

And in a bit of sardonic understatement, Obama's motorcade passed workers outside an office building holding up a sign that simply asked, "Rough week?"

___

Associated Press writers Charles Babington, Alan Fram, Nedra Pickler, Connie Cass, Andrew Taylor and Julie Pace contributed to this report.

Copyright The Associated Press

  • comment(4)

More News

 

Today on MyAJC.com

Botanical Garden’s ‘scarecrows’ are stuffed with silliness

Botanical Garden’s ‘scarecrows’ are stuffed with silliness

Native Americans are said to have created the first scarecrows on these shores to protect their corn crops from the scavenging black birds.

Paul Howard

DA’s spending of federal forfeiture money in question

Finances of the Fulton County District Attorney’s Office were in such chaos in recent years that even its most basic bills went unpaid.

Comments  (9)  

myajc logo 300x225

New 24-hour Digital Pass: Sample all of MyAJC.com for 99 cents

With a 24-hour digital pass, you can enjoy full versions of premium articles, news updates and access to the AJC online archives.

Irresistible news

Survey respondents choose coffee over sex and booze

The survey by Le Meridien Hotels & Resorts found that 54 percent of people surveyed around the world said they make their first cup of coffee at home, and 78 percent said that instead of giving up coffee, they would rather give up alcohol, social media and sex with their spouse for a whole year.

Deli worker chases armed robber with a machete

RAW VIDEO: Suffolk County Police are searching for a man who recently attempted to rob a Stop and Shop Deli at gunpoint.

Mexican monster truck wreck kills 8, hurts dozens

Monster truck plows into crowd in Mexico, killing 8

WARNING: Graphic video (above) A tragic ending to a monster truck show in Chihuahua, Mexico Saturday night — at least eight people were killed, including a child and dozens of others were seriously injured.

Three-year-old golfer hits amazing trick shots

Move over Rory Mcllroy, there's a new golfing prodigy in town. Three-year old Michael Patton from Dublin, Ireland, showed he may have the skills to pay the bills in the future by performing some delicate chip shots in his living room.

Latest in news

Hair weave theft suspects linked to several smash-and-grabs

Hair weave theft suspects linked to several smash-and-grabs

In a matter of minutes, so-called hair weave thieves have done thousands of dollars worth of damage, using a technique now familiar: Drive a stolen car into a beauty supply store; grab pricey hair extensions; hit the road before police can arrive; make off with up to $60,000 worth of products.