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| US debt: House vote on Republican spending cuts delayed | US debt: House vote on Republican spending cuts delayed |
| (40 minutes later) | |
| A Republican bill to raise the US debt ceiling, cut spending and avert default on US debt is inching toward back-to-back votes in the House and Senate. | A Republican bill to raise the US debt ceiling, cut spending and avert default on US debt is inching toward back-to-back votes in the House and Senate. |
| But House Speaker John Boehner's bill faces a conservative revolt, unanimous opposition by Senate Democrats and a White House veto threat. | But House Speaker John Boehner's bill faces a conservative revolt, unanimous opposition by Senate Democrats and a White House veto threat. |
| A House vote was delayed on Thursday evening as Republican leaders struggled to round up support. | |
| Congress must raise the US debt limit by a deadline of next Tuesday. | Congress must raise the US debt limit by a deadline of next Tuesday. |
| 'Untenable situation' | 'Untenable situation' |
| The US Treasury has warned the government will run out of money to pay all its bills unless a $14.3tn (£8.7tn) borrowing limit is increased by next Tuesday. | The US Treasury has warned the government will run out of money to pay all its bills unless a $14.3tn (£8.7tn) borrowing limit is increased by next Tuesday. |
| A vote on Mr Boehner's bill was scheduled for some point late on Thursday evening. Senate Majority Leader Harry Reid said he would hold a vote in the Senate as soon as the House voted. | A vote on Mr Boehner's bill was scheduled for some point late on Thursday evening. Senate Majority Leader Harry Reid said he would hold a vote in the Senate as soon as the House voted. |
| For the time being, all eyes are on John Boehner as he tries to muster enough votes to pass a bill which would raise the borrowing limit for a few months in return for deep cuts in government spending. | For the time being, all eyes are on John Boehner as he tries to muster enough votes to pass a bill which would raise the borrowing limit for a few months in return for deep cuts in government spending. |
| Conservative members of his own party don't think the measure goes far enough - and almost all Democrats are opposed - and a vote has been postponed. It's a real test of Mr Boehner's leadership. | Conservative members of his own party don't think the measure goes far enough - and almost all Democrats are opposed - and a vote has been postponed. It's a real test of Mr Boehner's leadership. |
| But even if the House passes it, the Democratic-controlled Senate won't. The majority leader there, Harry Reid, who calls the measure a big wet kiss for the right-wing, says it has no chance. | But even if the House passes it, the Democratic-controlled Senate won't. The majority leader there, Harry Reid, who calls the measure a big wet kiss for the right-wing, says it has no chance. |
| But he also says that magic things can happen in Congress in the right circumstances. It may be that sleight of hand, in the end, is what it will take. | But he also says that magic things can happen in Congress in the right circumstances. It may be that sleight of hand, in the end, is what it will take. |
| He predicted it would fail to pass the Senate, where Democrats and independents voting together hold 53 of 100 votes. | He predicted it would fail to pass the Senate, where Democrats and independents voting together hold 53 of 100 votes. |
| Republicans hold 240 of the 433 votes to be cast in the House, and need 216 of their members - plus Speaker Boehner in the event of a tie - to back the bill to pass it. | Republicans hold 240 of the 433 votes to be cast in the House, and need 216 of their members - plus Speaker Boehner in the event of a tie - to back the bill to pass it. |
| Meanwhile, International Monetary Fund chief Christine Lagarde warned that if the debt ceiling was not increased there could be an impact on the US dollar. | Meanwhile, International Monetary Fund chief Christine Lagarde warned that if the debt ceiling was not increased there could be an impact on the US dollar. |
| "One of the consequences could be a decline of the dollar as a reserve currency and a dent in people's confidence in the dollar," she said. | "One of the consequences could be a decline of the dollar as a reserve currency and a dent in people's confidence in the dollar," she said. |
| Mr Boehner and his lieutenants have been whipping restive members of the House rank and file - including some who oppose lifting the debt limit under any circumstances - to support the plan. | Mr Boehner and his lieutenants have been whipping restive members of the House rank and file - including some who oppose lifting the debt limit under any circumstances - to support the plan. |
| Mr Boehner's plan would trim $917bn from the US budget deficit over 10 years and raise the debt limit by up to $900bn. | Mr Boehner's plan would trim $917bn from the US budget deficit over 10 years and raise the debt limit by up to $900bn. |
| President Barack Obama supports another plan by top Senate Democrat Harry Reid, which would cut $2.2tn from deficits, and raise the debt ceiling by $2.7tn. | President Barack Obama supports another plan by top Senate Democrat Harry Reid, which would cut $2.2tn from deficits, and raise the debt ceiling by $2.7tn. |
| But that is thought unlikely in its current form to pass the Republican-controlled House. | But that is thought unlikely in its current form to pass the Republican-controlled House. |
| The Boehner and Reid plans overlap in key ways - trimming spending over 10 years, shunning President Obama's call for tax increases on the wealthy and creating special lawmaker committees to craft future cuts. | The Boehner and Reid plans overlap in key ways - trimming spending over 10 years, shunning President Obama's call for tax increases on the wealthy and creating special lawmaker committees to craft future cuts. |
| But Mr Boehner's approach would force another debt-limit showdown during next year's presidential campaign, something Mr Obama has fiercely opposed. | But Mr Boehner's approach would force another debt-limit showdown during next year's presidential campaign, something Mr Obama has fiercely opposed. |
| Senate Majority Leader Reid's plan would see the ceiling lifted until after the November 2012 elections. | Senate Majority Leader Reid's plan would see the ceiling lifted until after the November 2012 elections. |
| "No Democrat will vote for a short-term Band-Aid that would put our economy at risk and put the nation back in this untenable situation a few short months from now," Mr Reid said on Thursday. | "No Democrat will vote for a short-term Band-Aid that would put our economy at risk and put the nation back in this untenable situation a few short months from now," Mr Reid said on Thursday. |
| Endgame? | Endgame? |
| Senior Republicans goaded Democrats, saying they would have to accept responsibility for the economic consequences of default if they did not pass the Republican plan. | Senior Republicans goaded Democrats, saying they would have to accept responsibility for the economic consequences of default if they did not pass the Republican plan. |
| "It's inconceivable to me that the president would actually follow through on this [veto] threat," Senate Republican Leader Mitch McConnell said on Thursday. He accused Democrats of "playing with fire". | "It's inconceivable to me that the president would actually follow through on this [veto] threat," Senate Republican Leader Mitch McConnell said on Thursday. He accused Democrats of "playing with fire". |
| Analysts say success in the House for the Boehner plan would lend it legitimacy, but it would not be able to pass in the Senate. | Analysts say success in the House for the Boehner plan would lend it legitimacy, but it would not be able to pass in the Senate. |
| The most probable scenario is thought to be a last-minute scramble for a compromise and razor-edge votes in both chambers, with the high-stakes game of legislative brinkmanship expected to continue all weekend. | The most probable scenario is thought to be a last-minute scramble for a compromise and razor-edge votes in both chambers, with the high-stakes game of legislative brinkmanship expected to continue all weekend. |
| Senate Finance Committee Chairman Max Baucus predicted an endgame that would see lawmakers modify Mr Reid's bill to make it more appealing to Republicans. | Senate Finance Committee Chairman Max Baucus predicted an endgame that would see lawmakers modify Mr Reid's bill to make it more appealing to Republicans. |
| Speaking on Thursday, White House spokesman Jay Carney said a possible compromise would involve "significant deficit reduction, a mechanism by which Congress would take on the tough issues of tax reform and entitlement reform, and a lifting of the debt ceiling beyond - into 2013, so that we do not have the cloud of uncertainty that is hanging over our economy right now". | Speaking on Thursday, White House spokesman Jay Carney said a possible compromise would involve "significant deficit reduction, a mechanism by which Congress would take on the tough issues of tax reform and entitlement reform, and a lifting of the debt ceiling beyond - into 2013, so that we do not have the cloud of uncertainty that is hanging over our economy right now". |
| Washington hit its debt ceiling in May, but has used accounting adjustments, as well as higher-than-expected tax receipts, to continue operating. | Washington hit its debt ceiling in May, but has used accounting adjustments, as well as higher-than-expected tax receipts, to continue operating. |
| In recent decades, the US Congress has increased the government's borrowing authority dozens of times as a matter of routine, but this year newly elected conservative Republicans have demanded steep cuts to the budget deficit as the price of an increase. | In recent decades, the US Congress has increased the government's borrowing authority dozens of times as a matter of routine, but this year newly elected conservative Republicans have demanded steep cuts to the budget deficit as the price of an increase. |