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Debt ceiling debate: Obama to stake out position Debt ceiling debate: Obama stakes out position
(35 minutes later)
America is "not a deadbeat nation", US President Obama has said, warning Republicans not to hold the economy to ransom on the federal borrowing limit.America is "not a deadbeat nation", US President Obama has said, warning Republicans not to hold the economy to ransom on the federal borrowing limit.
He told a White House press conference it would be "absurd" to use the debt ceiling as a negotiating chip. He told a White House news conference it would be "absurd" to use the debt ceiling as a negotiating chip.
House Republicans have threatened not to allow it to rise, in a bid to extract spending cuts. Republican House Speaker John Boehner said a debt ceiling rise should be accompanied by spending cuts.
But the president warned they would "not collect a ransom in exchange for not crashing the economy". The US is expected to hit its $16.4tn (£10.2tn) borrowing limit by February unless lawmakers act.
"The full faith and credit of the United States of America is not a bargaining chip. And they better decide quickly because time is running short," he said.
Monday's press conference came a week before the inauguration ceremony in Washington DC that will begin Mr Obama's second term.Monday's press conference came a week before the inauguration ceremony in Washington DC that will begin Mr Obama's second term.
'Absurd' 'Ransom'
The Democratic president said that another standoff over the debt ceiling would be "a self-inflicted wound on our economy". The Democratic president warned lawmakers that they would "not collect a ransom... for not crashing the economy".
"America cannot afford another debate with this Congress about whether or not we should pay the bills we've already racked up," he said. "The full faith and credit of the United States of America is not a bargaining chip. And they [Republicans] better decide quickly because time is running short," Mr Obama said.
"We are not a deadbeat nation," Mr Obama added. "America cannot afford another debate with this Congress about whether or not we should pay the bills we've already racked up," he added.
"You don't go out to dinner and eat all you want and then leave without paying the cheque," he went on. "That's breaking the law." "We are not a deadbeat nation," Mr Obama said.
Speaking on a day that marked a month on from the massacre at a primary school in Connecticut that shocked the nation, Mr Obama also said he would present proposals for gun control later in the week. Afterwards, Mr Boehner, leader of the House Republicans, acknowledged the economic peril of failing to raise the debt ceiling. But he indicated the House would attach spending cuts to any legislation to raise the borrowing authority.
"The American people do not support raising the debt ceiling without reducing government spending at the same time," he said in a statement.
Speaking on a day marking a month on from the massacre at a Connecticut primary school that shocked the nation, Mr Obama also said he would present proposals for gun control later in the week.
He said stronger background checks, control of high capacity magazine clips, and an assault weapons ban were all measures he believed made sense.He said stronger background checks, control of high capacity magazine clips, and an assault weapons ban were all measures he believed made sense.
"Will all of them get through this Congress?" he asked. "I don't know.""Will all of them get through this Congress?" he asked. "I don't know."
The National Rifle Association and some lawmakers have suggested that any plan to ban assault weapons would not pass Congress.The National Rifle Association and some lawmakers have suggested that any plan to ban assault weapons would not pass Congress.
Ahead of the debt ceiling fight, the White House in recent days has stated it will forgo two extraordinary measures suggested by the president's allies and by left-leaning pundits.Ahead of the debt ceiling fight, the White House in recent days has stated it will forgo two extraordinary measures suggested by the president's allies and by left-leaning pundits.
The White House will not order the treasury to mint a $1tn (£623bn) platinum coin - an accounting measure that would allow spending to continue. The White House will not order the treasury to mint a $1tn platinum coin - an accounting measure that would allow spending to continue.
Nor will Mr Obama invoke a clause in the 14th amendment to the US constitution declaring that "the validity of the public debt of the United States... shall not be questioned".Nor will Mr Obama invoke a clause in the 14th amendment to the US constitution declaring that "the validity of the public debt of the United States... shall not be questioned".
The last debt ceiling battle between Congress and Mr Obama ended in July 2011. The ceiling was raised $2.4tn in exchange for automatic across-the-board spending cuts scheduled for 1 January 2013.The last debt ceiling battle between Congress and Mr Obama ended in July 2011. The ceiling was raised $2.4tn in exchange for automatic across-the-board spending cuts scheduled for 1 January 2013.
Mr Obama had previously said he wanted a permanent extension of the debt limit as part of a deal to avoid those spending cuts which, combined with a package of tax rises, was known as the fiscal cliff.Mr Obama had previously said he wanted a permanent extension of the debt limit as part of a deal to avoid those spending cuts which, combined with a package of tax rises, was known as the fiscal cliff.
A last-minute deal in Congress avoided most of those tax rises and deferred the spending cuts by two months, but the debt ceiling limit was not part of the negotiations.A last-minute deal in Congress avoided most of those tax rises and deferred the spending cuts by two months, but the debt ceiling limit was not part of the negotiations.
In preparation for the debt ceiling fight, Treasury Secretary Timothy Geithner has already cut payments into the pension and disability fund for government workers and to the health benefits fund of postal retirees.In preparation for the debt ceiling fight, Treasury Secretary Timothy Geithner has already cut payments into the pension and disability fund for government workers and to the health benefits fund of postal retirees.
The debt ceiling is currently $16.4tn, meaning in essence that the US cannot borrow more money than that to pay its bills.
The Bipartisan Policy Center estimates Mr Geithner's "extraordinary measures" will be exhausted between 15 February and 1 March.The Bipartisan Policy Center estimates Mr Geithner's "extraordinary measures" will be exhausted between 15 February and 1 March.