The federal government has three days left to raise the nation's current $14.3 trillion debt ceiling, the Treasury Department said. Failure to do so will risk an unprecedented national default.
If the debt ceiling is not raised by Tuesday, Americans could face rising interest rates and a declining dollar, among other problems.
As the cost of borrowing rises, individual mortgages, car loans and student loans could become significantly more expensive. Some financial experts have warned of a downgrade of America's triple-A credit rating and a potential stock market crash.
Without an increase in the debt limit, the federal government will not be able to pay all of its bills next month. President Barack Obama recently indicated he can't guarantee Social Security checks will be mailed out on time. Other critical government programs could be endangered as well.
Where do things stand in the fight to raise the debt ceiling?
Senate Majority Leader Harry Reid, D-Nevada, temporarily stopped legislative consideration of his debt ceiling proposal late Saturday night, reversing an earlier decision to hold a key procedural vote on the measure by 1 a.m. ET Sunday.
Negotiations were still underway at the White House, Reid said. The vote will now be held at 1 p.m. ET on Sunday.
There are "many elements to be finalized" and still "a distance to go," Reid said. "We should give everyone as much room as possible to do their work."
The announcement comes a few hours after Reid denied claims from House Speaker John Boehner, R-Ohio, that progress was being made on a debt ceiling deal.
The Republicans "refuse to negotiate in good faith," Reid said. "The process has not been moved forward during this day."
The Democratic-led Senate on Friday blocked the Boehner plan from being considered, voting 59-41 to table the measure.
Under an amended version, it would reduce federal deficits over the next decade by $2.4 trillion while raising the debt ceiling by a similar amount - meeting the GOP's demand that total savings should at least equal any total debt ceiling hike.
Roughly $1 trillion in the savings are based on the planned U.S. withdrawals from military engagements in Afghanistan and Iraq.
Reid's plan also would establish a congressional committee made up of 12 House and Senate members to consider additional options for debt reduction. The committee's proposals would be guaranteed a Senate vote with no amendments by the end of this year.
In addition, it incorporates a process proposed by Senate Minority Leader Mitch McConnell, R-Kentucky, that would give Obama the authority to raise the debt ceiling in two steps while providing Congress the opportunity to vote its disapproval.
House Speaker John Boehner expressed optimism Saturday that an agreement is near, despite the House's rejection of a plan proposed by Senate Majority Leader Harry Reid.
"In spite of our differences, we're dealing with reasonable, responsible people," Boehner said.
Senate Minority Leader Mitch McConnell, R-Kentucky, also said Saturday afternoon that he had talked to President Barack Obama and Vice President Joe Biden "within the last hour" and is "confident and optimistic" that there will be an "agreement within the very near future."
Earlier Saturday, the Republican-controlled House of Representatives rejected Reid's proposed debt ceiling plan in a sharply polarized 173-246 vote. Republicans unanimously opposed the measure while most Democrats backed it. GOP leaders conducted the vote on Reid's bill under rules requiring a two-thirds majority for passage, thereby ensuring its defeat.
The Republican-controlled House on Friday passed a proposal put forward by House Speaker John Boehner, R-Ohio, that seeks to raise the debt ceiling and cut government spending while requiring that Congress pass a balanced-budget amendment to the U.S. Constitution. The 218-210 vote was strictly on party lines. The vote had been scheduled to occur Thursday night, but Republican leaders postponed it because they lacked support within their own caucus to get it passed. After the House vote, the measure went to the Senate, where Democrats blocked it from being considered.
Boehner's plan calls for $917 billion in savings over the next decade, while creating a special congressional committee to recommend additional savings of $1.6 trillion or more. It would allow the debt ceiling to be increased by a total of roughly $2.5 trillion through two separate votes. The $2.5 trillion total would be enough to fund the federal government through the end of 2012.
The plan originally called for a congressional vote on a balanced-budget amendment to the Constitution by the end of the year. Boehner then reached out to disgruntled conservatives by amending the plan to require congressional passage of such an amendment as a condition for raising the debt limit by the full $2.5 trillion.
Obama has endorsed Reid's plan and threatened a veto of Boehner's plan. The president strongly opposes any bill that doesn't raise the debt ceiling through the 2012 election, and he has promised to veto any short-term debt ceiling extension unless it paves the way for a "grand bargain" of more sweeping reforms and revenue increases.
On Friday, Obama urged Senate Democrats and Republicans to take the lead in congressional negotiations. He said the House GOP plan "has no chance of becoming law." Obama also urged Americans to keep contacting members of Congress in order "to keep the pressure on Washington."
The president made a nationally televised plea for compromise Monday night, though he also criticized Republicans for opposing any tax hikes on the wealthy.
No face-to-face negotiations are currently scheduled for Saturday.
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Post by: The CNN Wire Filed under: Barack Obama • Harry Reid • John Boehner • Politics |
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Yo FUBO don't go 2 da vineyard caus f I c u ill aim a can of peas n buss yo eye u fn muzzball!
"The president strongly opposes any bill that doesn't raise the debt ceiling through the 2012 election"
this drives me nuts. the election cycle is half the reason congress can't get anything done. all these people care about is their jobs. We need to move to a single 6 year term.
This does happen-but if employers reserve the right to do spontaneous drug checks and schools do pop locker checks-why can't Social Services do pop urine tests. And not allow them to take any bags or pocketbooks in the bathroom with them. This way they cant take anyone elses urine in to use.Drugs-no money!! Also make voting mandetory. Every one needs to take part in protecting their benefits by their vote. Cards can be stamped at the poll and turned in. Someone who doesnt have a job can check to see that all have voted-hell it might give lots of people jobs. These bigheaded leaders have been away from mainstreet so long they are clueless. I have talked to people who are afraid to vote because they never have. This is always a problem-not voting. So why isnt each district showing a one minute commercial on how to use their local machines. I cant stand it when everyone spouts off about the problems, fights about them and never offers a solution. This is what our politicians have been doing. We need people in charge that are proactive and can govern not have what equates to a toddeler that says NO! BECAUSE THEY WANT THEIR OWN WAY.
Not every one getting assistance is on drugs,but there has to be a way that those with true need can be protected.
Sorry kid, you're mom tested positive since she ate a poppy seed bagel so you'll have to starve this month. Sounds fair.
No we need 2 erase the communists(democRATs)illegal aliens,mudslum terrorists and anyone who is an enabler or apologist 4 any of them-straight up we need more Breiviks-DTtL!
Playing With Fire! That's what you guys are doing. While the "rest of the world" stands by watching you Americans fiddling, we are all losing faith in you. And may the good lord help you if "the rest of the world" needs to go through this again in 12 months during your election. I think this is a major turning point for the US, and don't blame Obama. Blame the Tea Party for trying to grab power, and leave your soldiers penniless with no cheques, a sacrifice that should never be allowed, or people on social assistance. All just because of greedy power mongering. "The rest of the world" is going to be very fed up with you Americans. You are not in control any more.
dont presume all americans are responsible for this mess...we are being victimized by our own government. besides as many times as we have given our blood sweat and tears to help other countries, the whole world should be lining up to pay us back. so bite it.
American, how are you being "victimized by our own government?"
I am not a politician but my family and I have been fighing all our lives for peoples rights-and I am open to any ideas that help people better their lives-wether it be fixing these programs or making jobs. Anyone got any ideas?? We are all here at the level changes are needed. And KIKI my answer was facious.
And the "goal" of all this so we can borrow more money from China?
Many folks don't understand that the Chinese buy our bonds in order to unload dollars they have collected out of the Chinese economy in order to prevent their exchange on the open market. This is how they support the CURRENCY PEG which gives Chinese products a 40% advantage over American ones. Great!
Borrowing the money is the CAUSE of our economic disaster not the solution.
Want to increase revenue? Slap a
40% Tariff on China until they play fair in currency and drop their armada of trade barriers Sure Wal-Mart will hate it, but their customers might have jobs.
Greg Autry, co-author of Death by China
And the "goal" of all this so we can borrow more money from China?
Many folks don't understand that the Chinese buy our bonds in order to unload dollars they have collected out of the Chinese economy in order to prevent their exchange on the open market. This us how the support thier CURRENCY PEG which gives Chinese products a 40% advantage over American products. Great!
Borrowing the money is the CAUSE of our economic disaster not the solution.
Want to increase revenue? Slap a 40% Tariff on China until they play fair in currency and drop their armada of trade barriers Sure Wal-Mart will hate it, but their customers might have jobs.
Greg Autry, co-author of Death by China
The end of the Tea Party is nigh.
From your lips (or keyboard) to G-d's ears.
If even we on this forun cant have decorum and civility how do we expect to be an example for ourpoliticians,the world and our children?
So charge every citizen regardless of income 25% people who haven't payed in to social security don't give it to them, make people with government assistance take a drug test if the fail don't give it to them, take away realistate tax sales tax and property tax charge another 5% for that and give it to the state of residence, charge corporations 35% and do away with all tax breaks, and then take the 25% and divide it up however u need too. And chrage the immigrants who come over here and open a business taxes too regardless unjust charge it don't.give breaks too many loop holes, deductions fine but only provable ones such as expenses.
Oh yea and do away with tax exepmtions for churches and non for profits thats the dumbmest thingnive ever heard of the make millions and.millions and give the higher ups big bonuses to show no profit yet they did make profit ans got away without paying taxes
PAY THE TROOPS FIRST.
First it was political bullying, government by blackmail: "Do it my way or I'll blow us all up!".
Now it's "make nice." What's going on? Do I hear the banks and other special interests whispering "Compromise!" in the Repubs' ears? The Dems have backed off almost all their demands – including revenue – and so have nothing else to give.
Seize the moment ! Or we'll all pay BIG TIME !
C'mon banks! You paid to put these dumb-assed bullies in office. Now you rein them in before they destroy you like everyone else.
What the hell is wrong with our govererment. lowincome people need their checks 2 have a place 2stay. if u stop payments u will have hell 2 pay. crime will rise in the streets and washington 2
The burden to solve the country's problems are on the general public not congress or the president. Who but a superman could transform this generation??