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US shutdown: fruitless talks leave bitter stalemate in place US shutdown: fruitless talks leave bitter stalemate in place
(about 14 hours later)
President Barack Obama met Republican and Democratic leaders in Congress on Wednesday but failed to break the deadlock that has shut down wide swaths of the federal government. Washington was braced for a protracted stalemate over both the government shutdown and federal debt limit on Thursday after talks between President Obama and Congressional leaders failed to bring Republicans and Democrats any closer together.
After more than an hour of talks, House of Representatives Speaker John Boehner said Obama refused to negotiate, while House Democratic leader Nancy Pelosi and Senate Democratic leader Harry Reid accused Republicans of trying to hold the president hostage over Obamacare. With public anger mounting over a third day of disrupted services, senators will also have to decide whether to follow through on threats to veto a series of House bills that would bring partial relief from the shutdown by exempting national parks, veterans affairs and the District of Columbia.
Senate majority leader Harry Reid has dismissed the piecemeal budget approach proposed by the House as a “gimmick” and repeated calls for speaker John Boehner to allow a vote on the so-called “clean” continuing resolution that would authorise all government spending without threatening Obama's health reforms.
It also appears that Republicans are digging in their heels for a protracted battle as party leaders increasingly combine talk of lifting the budget deadlock with negotiations over extending a federal debt limit that will be breached on 17 October.
President Barack Obama met Republican and Democratic leaders in Congress on Wednesday evening but failed to break the deadlock that has shut down wide swaths of the federal government.
After more than an hour of talks, Speaker Boehner said Obama refused to negotiate, while House Democratic leader Nancy Pelosi and senator Reid accused Republicans of trying to hold the president hostage over Obamacare.
Reid said Obama told Republicans "he will not stand" for their tactics.Reid said Obama told Republicans "he will not stand" for their tactics.
As hundreds of thousands of federal employees faced a second day without pay, leaders of the Republican-controlled Representatives and the Democratic-led Senate offered token concessions that were quickly dismissed by the other side. Obama scaled back a long-planned trip to Asia, cancelling plans to visit Malaysia and the Philippines. As hundreds of thousands of federal employees faced a third day without pay, leaders of the Republican-controlled Representatives and the Democratic-led Senate offered token concessions that were quickly dismissed by the other side. Obama scaled back a long-planned trip to Asia, cancelling plans to visit Malaysia and the Philippines.
Secretary of State John Kerry will take his place. Obama is weighing up whether to attend diplomatic summits in Indonesia and Brunei, a White House official said.Secretary of State John Kerry will take his place. Obama is weighing up whether to attend diplomatic summits in Indonesia and Brunei, a White House official said.
Republicans have tried to tie continued government funding to measures that would undercut Obama's signature healthcare law. Obama and his Democrats say that is a non-starter.Republicans have tried to tie continued government funding to measures that would undercut Obama's signature healthcare law. Obama and his Democrats say that is a non-starter.
"The president reiterated one more time that he will not negotiate," Boehner told reporters after the White House meeting. "All we're asking for here is a discussion and fairness for the American people under Obamacare.""The president reiterated one more time that he will not negotiate," Boehner told reporters after the White House meeting. "All we're asking for here is a discussion and fairness for the American people under Obamacare."
Reid said Democrats were willing to discuss any ways to tackle the budget after a temporary funding bill is passed. "We're through playing these little games," he said.Reid said Democrats were willing to discuss any ways to tackle the budget after a temporary funding bill is passed. "We're through playing these little games," he said.
The shutdown, which took effect at midnight on Monday at midnight, has raised questions about Washington's ability to carry out its most essential duties.The shutdown, which took effect at midnight on Monday at midnight, has raised questions about Washington's ability to carry out its most essential duties.
Though it would do relatively little damage to the world's largest economy in the short term, global markets might be affected if Congress also fails to raise the debt limit before borrowing authority runs out in coming weeks.Though it would do relatively little damage to the world's largest economy in the short term, global markets might be affected if Congress also fails to raise the debt limit before borrowing authority runs out in coming weeks.
The shutdown has closed landmarks such as the Grand Canyon and prevented some cancer patients from receiving treatment.
/>"Am I exasperated? Absolutely I'm exasperated. Because this is entirely unnecessary," Obama told CNBC television in an interview before meeting the congressional leaders. "I am exasperated with the idea that unless I say to 20 million people, 'You can't have health insurance,' these folks will not reopen the government. That is irresponsible."		 The shutdown has closed landmarks such as the Grand Canyon and prevented some cancer patients from receiving treatment. "Am I exasperated? Absolutely I'm exasperated. Because this is entirely unnecessary," Obama told CNBC television in an interview before meeting the congressional leaders. "I am exasperated with the idea that unless I say to 20 million people, 'You can't have health insurance,' these folks will not reopen the government. That is irresponsible."
The US army's top general said the shutdown was significantly harming day-to-day operations, and intelligence leaders say it is undermining their ability to monitor threats. A Federal Reserve official said it could delay the central bank's ability to assess whether its monetary stimulus efforts are still needed.
/>Obama's healthcare law passed a milestone on Tuesday when it began signing up uninsured Americans for subsidised health coverage.		 The US army's top general said the shutdown was significantly harming day-to-day operations, and intelligence leaders say it is undermining their ability to monitor threats. A Federal Reserve official said it could delay the central bank's ability to assess whether its monetary stimulus efforts are still needed. 
/>Obama's healthcare law passed a milestone on Tuesday when it began signing up uninsured Americans for subsidised health coverage.
Though some moderate Republicans have begun to question their party's strategy, Boehner so far has kept them united behind a plan to offer a series of small bills that would reopen selected parts of the government most visibly affected by the shutdown.Though some moderate Republicans have begun to question their party's strategy, Boehner so far has kept them united behind a plan to offer a series of small bills that would reopen selected parts of the government most visibly affected by the shutdown.
But the measures are likely to be defeated in the Senate, and Obama said he would veto them if they reached his desk.But the measures are likely to be defeated in the Senate, and Obama said he would veto them if they reached his desk.
Still, they allowed Republicans to charge that their adversaries are standing in the way of help for elderly veterans and young cancer patients. "Will they now say no to funding for veterans, our national parks and the National Institutes of Health?" asked Boehner spokesman Michael Steel.
/>A Reuters/Ipsos poll indicated that 24% of Americans blamed Republicans for the shutdown, while 19% blamed Obama or Democrats. Another 46% said everyone was to blame.		 Still, they allowed Republicans to charge that their adversaries are standing in the way of help for elderly veterans and young cancer patients. "Will they now say no to funding for veterans, our national parks and the National Institutes of Health?" asked Boehner spokesman Michael Steel. 
/>A Reuters/Ipsos poll indicated that 24% of Americans blamed Republicans for the shutdown, while 19% blamed Obama or Democrats. Another 46% said everyone was to blame.
The shutdown fight is rapidly merging with a higher-stakes battle over the government's borrowing power that is expected to come to a head soon.The shutdown fight is rapidly merging with a higher-stakes battle over the government's borrowing power that is expected to come to a head soon.
Treasury secretary Jack Lew has said the United States will exhaust its borrowing authority no later than 17 October. The government might have difficulty paying pensions, interest charges and other bills after that.Treasury secretary Jack Lew has said the United States will exhaust its borrowing authority no later than 17 October. The government might have difficulty paying pensions, interest charges and other bills after that.
Many Republicans see the debt limit vote as another opportunity to undercut Obama's healthcare law or extract other concessions – an approach that business groups say could lead to disaster.Many Republicans see the debt limit vote as another opportunity to undercut Obama's healthcare law or extract other concessions – an approach that business groups say could lead to disaster.
"You can relitigate these policy issues in a political forum, but they shouldn't use the threat of causing the US to fail on its ... obligations to repay on its debt as a cudgel," Goldman Sachs chief executive Lloyd Blankfein told reporters after he and other financial-industry executives met Obama."You can relitigate these policy issues in a political forum, but they shouldn't use the threat of causing the US to fail on its ... obligations to repay on its debt as a cudgel," Goldman Sachs chief executive Lloyd Blankfein told reporters after he and other financial-industry executives met Obama.
Obama said Wall Street should be worried about the debt ceiling. "I think this time's different. I think they should be concerned," Obama told CNBC. "When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble."Obama said Wall Street should be worried about the debt ceiling. "I think this time's different. I think they should be concerned," Obama told CNBC. "When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble."
Reuters in Washington contributed to this story
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