(List compiled by Andrew Dominguez. Data sourced from Screener.co. Disclosure: Andrew Dominguez owns GE shares.)
In some senses, paying taxes is like buying shares of a company – taxes are an investment in the wellbeing of a country and its citizens. It can also provide a sense of ownership and involvement in the state of the government and society.
By the same token, one would hope that the government is trying to maximize value for its shareholders – its tax-paying and tax-exempt citizenry. This might include constantly improving roads, fire and police departments, education, pensions, and a whole host of other services. This is why the recent debt ceiling debacle has been particularly frustrating for this author.
The decision to cut budgets without raising taxes seems to imply that our elected officials would rather bail on its obligations to their most vulnerable constituents – those that rely on public education and transportation for their livelihoods; the retired; the poor and huddled masses – instead of asking the most fortunate members of the populace to lend a helping hand.
Arguing that low marginal tax rates are essential to spur growth overlook the fact that the remarkable growth in the 1960s, still considered a benchmark for potential GDP, occurred in spite of a 91 percent income tax on the highest earners.
By pandering to the strongest members of society and abandoning the weakest, the American government may have squandered the American dream – the idea that meritocracy and liberalism could afford social and economic mobility to all of America’s citizens; a belief in a city upon a hill, shining like a beacon for the rest of the world to behold in wonder, like Lady Liberty herself.
Instead, the government is near broke. According to the Treasury department, the total amount of taxpayers’ money left in the coffers amounts to little more than $67bn, around half of what was available as recently as mid-July.
A number of companies have handled their shareholders’ money much more responsibly than the American government. Here is a list of the ten companies that have more cash at their disposal than Uncle Sam does.
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned
List sorted by cash and equivalents in the most recent quarter.
Note: Because many of the companies listed below are foreign/ADR stocks, there could be a mismatch between market cap and cash & equivalents figures. Cash & equivalents reflect all of the cash held by the company, globally. Market cap might only reflect the total value of shares listed in American exchanges, which would not include the value of shares listed in other countries.
1. Banco Bilbao Vizcaya Argentaria SA (BBVA): Money Center Banks industry with a market cap of $47.96B. Cash and Equivalents at $512.07B. It is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. It also has investments in some of Spain’s companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities.
2. UBS AG (UBS): Investment Services industry with a market cap of $62.41B. Cash and Equivalents at $165.15B. It offers a combination of wealth management, asset management and investment banking services on a global and regional basis. As of December 31, 2009, it operated about 973 business and banking locations worldwide, of which about 42% were in Switzerland, 41% in the Americas, 12% in the rest of Europe, Middle East and Africa, and 5% in Asia-Pacific.
3. Barclays PLC (BCS): Money Center Banks industry with a market cap of $43.75B. Cash and Equivalents at $160.26B. It is engaged in retail banking, credit cards, corporate and investment banking and wealth management. It operates through branches, offices and subsidiaries in the United Kingdom and overseas.
4. General Electric Company (GE): Conglomerates industry with a market cap of $190.49B. Cash and Equivalents at $136.4B. It is a diversified technology and financial services corporation. Its products and services range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. Its segments include Energy Infrastructure, Technology Infrastructure, NBC Universal, GE Capital and Home & Business Solutions.
5. Banco Santander, S.A. (STD): Regional Banks industry with a market cap of $85.06B. Cash and Equivalents at $123.59B. It operates principally in Spain, the United Kingdom, Portugal, other European countries, Brazil and other Latin American countries and the United States, offering a range of financial products. It operates in four segments: Continental Europe, United Kingdom, Latin America and Sovereign.
6. Bank of America Corporation (BAC): Money Center Banks industry with a market cap of $99.59B. Cash and Equivalents at $119.53B. It serves individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. It provides a range of banking and non-banking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets (GBAM) and Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other.
7. Royal Bank of Scotland Group PLC (RBS): Money Center Banks industry with a market cap of $33.45B. Cash and Equivalents at $97.82B. It operates in the United Kingdom, the United States, and internationally through its two principal subsidiaries, The Royal Bank of Scotland plc and National Westminster Bank Plc. Its business segments include: UK Retail, UK Corporate, Wealth, Global Banking and Markets (GBM), Global Transaction Services, Ulster Bank, US Retail and Commercial and RBS Insurance.
8. Lloyds TSB Group PLC (LYG): Money Center Banks industry with a market cap of $47.25B. Cash and Equivalents at $88.94B. It provides a range of banking and financial services, primarily in the United Kingdom, to personal and corporate customers. Its main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. It also operates an international banking business with a global footprint in over 30 countries.
9. Credit Suisse Group AG (CS): Investment Services industry with a market cap of $42.34B. Cash and Equivalents at $87.16B. It provides advisory services, solutions and products to companies, institutional clients and private clients globally, as well as to the retail clients in Switzerland. It operates in three business segments: Private Banking, Investment Banking and Asset Management.
10. HSBC Holdings PLC (HBC): Regional Banks industry with a market cap of $177.94B. Cash and Equivalents at $71.75B. It is a global banking and financial services organizations. As of December 31, 2010, it provided a range of financial services to around 95 million customers through two customer groups, Personal Financial Services (PFS), including consumer finance, and Commercial Banking (CMB), and two global businesses, Global Banking and Markets (GB&M), and Global Private Banking (GPB). As of December 31, 2010, the Company had an international network of some 7,500 offices in 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Showing posts with label USA. Show all posts
Showing posts with label USA. Show all posts
Tuesday, 2 August 2011
Top 10 Companies With More Cash Than The U.S. Government
(List compiled by Andrew Dominguez. Data sourced from Screener.co. Disclosure: Andrew Dominguez owns GE shares.)
In some senses, paying taxes is like buying shares of a company – taxes are an investment in the wellbeing of a country and its citizens. It can also provide a sense of ownership and involvement in the state of the government and society.
By the same token, one would hope that the government is trying to maximize value for its shareholders – its tax-paying and tax-exempt citizenry. This might include constantly improving roads, fire and police departments, education, pensions, and a whole host of other services. This is why the recent debt ceiling debacle has been particularly frustrating for this author.
The decision to cut budgets without raising taxes seems to imply that our elected officials would rather bail on its obligations to their most vulnerable constituents – those that rely on public education and transportation for their livelihoods; the retired; the poor and huddled masses – instead of asking the most fortunate members of the populace to lend a helping hand.
Arguing that low marginal tax rates are essential to spur growth overlook the fact that the remarkable growth in the 1960s, still considered a benchmark for potential GDP, occurred in spite of a 91 percent income tax on the highest earners.
By pandering to the strongest members of society and abandoning the weakest, the American government may have squandered the American dream – the idea that meritocracy and liberalism could afford social and economic mobility to all of America’s citizens; a belief in a city upon a hill, shining like a beacon for the rest of the world to behold in wonder, like Lady Liberty herself.
Instead, the government is near broke. According to the Treasury department, the total amount of taxpayers’ money left in the coffers amounts to little more than $67bn, around half of what was available as recently as mid-July.
A number of companies have handled their shareholders’ money much more responsibly than the American government. Here is a list of the ten companies that have more cash at their disposal than Uncle Sam does.
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned
List sorted by cash and equivalents in the most recent quarter.
Note: Because many of the companies listed below are foreign/ADR stocks, there could be a mismatch between market cap and cash & equivalents figures. Cash & equivalents reflect all of the cash held by the company, globally. Market cap might only reflect the total value of shares listed in American exchanges, which would not include the value of shares listed in other countries.
1. Banco Bilbao Vizcaya Argentaria SA (BBVA): Money Center Banks industry with a market cap of $47.96B. Cash and Equivalents at $512.07B. It is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. It also has investments in some of Spain’s companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities.
2. UBS AG (UBS): Investment Services industry with a market cap of $62.41B. Cash and Equivalents at $165.15B. It offers a combination of wealth management, asset management and investment banking services on a global and regional basis. As of December 31, 2009, it operated about 973 business and banking locations worldwide, of which about 42% were in Switzerland, 41% in the Americas, 12% in the rest of Europe, Middle East and Africa, and 5% in Asia-Pacific.
3. Barclays PLC (BCS): Money Center Banks industry with a market cap of $43.75B. Cash and Equivalents at $160.26B. It is engaged in retail banking, credit cards, corporate and investment banking and wealth management. It operates through branches, offices and subsidiaries in the United Kingdom and overseas.
4. General Electric Company (GE): Conglomerates industry with a market cap of $190.49B. Cash and Equivalents at $136.4B. It is a diversified technology and financial services corporation. Its products and services range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. Its segments include Energy Infrastructure, Technology Infrastructure, NBC Universal, GE Capital and Home & Business Solutions.
5. Banco Santander, S.A. (STD): Regional Banks industry with a market cap of $85.06B. Cash and Equivalents at $123.59B. It operates principally in Spain, the United Kingdom, Portugal, other European countries, Brazil and other Latin American countries and the United States, offering a range of financial products. It operates in four segments: Continental Europe, United Kingdom, Latin America and Sovereign.
6. Bank of America Corporation (BAC): Money Center Banks industry with a market cap of $99.59B. Cash and Equivalents at $119.53B. It serves individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. It provides a range of banking and non-banking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets (GBAM) and Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other.
7. Royal Bank of Scotland Group PLC (RBS): Money Center Banks industry with a market cap of $33.45B. Cash and Equivalents at $97.82B. It operates in the United Kingdom, the United States, and internationally through its two principal subsidiaries, The Royal Bank of Scotland plc and National Westminster Bank Plc. Its business segments include: UK Retail, UK Corporate, Wealth, Global Banking and Markets (GBM), Global Transaction Services, Ulster Bank, US Retail and Commercial and RBS Insurance.
8. Lloyds TSB Group PLC (LYG): Money Center Banks industry with a market cap of $47.25B. Cash and Equivalents at $88.94B. It provides a range of banking and financial services, primarily in the United Kingdom, to personal and corporate customers. Its main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. It also operates an international banking business with a global footprint in over 30 countries.
9. Credit Suisse Group AG (CS): Investment Services industry with a market cap of $42.34B. Cash and Equivalents at $87.16B. It provides advisory services, solutions and products to companies, institutional clients and private clients globally, as well as to the retail clients in Switzerland. It operates in three business segments: Private Banking, Investment Banking and Asset Management.
10. HSBC Holdings PLC (HBC): Regional Banks industry with a market cap of $177.94B. Cash and Equivalents at $71.75B. It is a global banking and financial services organizations. As of December 31, 2010, it provided a range of financial services to around 95 million customers through two customer groups, Personal Financial Services (PFS), including consumer finance, and Commercial Banking (CMB), and two global businesses, Global Banking and Markets (GB&M), and Global Private Banking (GPB). As of December 31, 2010, the Company had an international network of some 7,500 offices in 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
In some senses, paying taxes is like buying shares of a company – taxes are an investment in the wellbeing of a country and its citizens. It can also provide a sense of ownership and involvement in the state of the government and society.
By the same token, one would hope that the government is trying to maximize value for its shareholders – its tax-paying and tax-exempt citizenry. This might include constantly improving roads, fire and police departments, education, pensions, and a whole host of other services. This is why the recent debt ceiling debacle has been particularly frustrating for this author.
The decision to cut budgets without raising taxes seems to imply that our elected officials would rather bail on its obligations to their most vulnerable constituents – those that rely on public education and transportation for their livelihoods; the retired; the poor and huddled masses – instead of asking the most fortunate members of the populace to lend a helping hand.
Arguing that low marginal tax rates are essential to spur growth overlook the fact that the remarkable growth in the 1960s, still considered a benchmark for potential GDP, occurred in spite of a 91 percent income tax on the highest earners.
By pandering to the strongest members of society and abandoning the weakest, the American government may have squandered the American dream – the idea that meritocracy and liberalism could afford social and economic mobility to all of America’s citizens; a belief in a city upon a hill, shining like a beacon for the rest of the world to behold in wonder, like Lady Liberty herself.
Instead, the government is near broke. According to the Treasury department, the total amount of taxpayers’ money left in the coffers amounts to little more than $67bn, around half of what was available as recently as mid-July.
A number of companies have handled their shareholders’ money much more responsibly than the American government. Here is a list of the ten companies that have more cash at their disposal than Uncle Sam does.
Analyze These Ideas (Tools Will Open In A New Window)
1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned
List sorted by cash and equivalents in the most recent quarter.
Note: Because many of the companies listed below are foreign/ADR stocks, there could be a mismatch between market cap and cash & equivalents figures. Cash & equivalents reflect all of the cash held by the company, globally. Market cap might only reflect the total value of shares listed in American exchanges, which would not include the value of shares listed in other countries.
1. Banco Bilbao Vizcaya Argentaria SA (BBVA): Money Center Banks industry with a market cap of $47.96B. Cash and Equivalents at $512.07B. It is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. It also has investments in some of Spain’s companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities.
2. UBS AG (UBS): Investment Services industry with a market cap of $62.41B. Cash and Equivalents at $165.15B. It offers a combination of wealth management, asset management and investment banking services on a global and regional basis. As of December 31, 2009, it operated about 973 business and banking locations worldwide, of which about 42% were in Switzerland, 41% in the Americas, 12% in the rest of Europe, Middle East and Africa, and 5% in Asia-Pacific.
3. Barclays PLC (BCS): Money Center Banks industry with a market cap of $43.75B. Cash and Equivalents at $160.26B. It is engaged in retail banking, credit cards, corporate and investment banking and wealth management. It operates through branches, offices and subsidiaries in the United Kingdom and overseas.
4. General Electric Company (GE): Conglomerates industry with a market cap of $190.49B. Cash and Equivalents at $136.4B. It is a diversified technology and financial services corporation. Its products and services range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. Its segments include Energy Infrastructure, Technology Infrastructure, NBC Universal, GE Capital and Home & Business Solutions.
5. Banco Santander, S.A. (STD): Regional Banks industry with a market cap of $85.06B. Cash and Equivalents at $123.59B. It operates principally in Spain, the United Kingdom, Portugal, other European countries, Brazil and other Latin American countries and the United States, offering a range of financial products. It operates in four segments: Continental Europe, United Kingdom, Latin America and Sovereign.
6. Bank of America Corporation (BAC): Money Center Banks industry with a market cap of $99.59B. Cash and Equivalents at $119.53B. It serves individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. It provides a range of banking and non-banking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets (GBAM) and Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other.
7. Royal Bank of Scotland Group PLC (RBS): Money Center Banks industry with a market cap of $33.45B. Cash and Equivalents at $97.82B. It operates in the United Kingdom, the United States, and internationally through its two principal subsidiaries, The Royal Bank of Scotland plc and National Westminster Bank Plc. Its business segments include: UK Retail, UK Corporate, Wealth, Global Banking and Markets (GBM), Global Transaction Services, Ulster Bank, US Retail and Commercial and RBS Insurance.
8. Lloyds TSB Group PLC (LYG): Money Center Banks industry with a market cap of $47.25B. Cash and Equivalents at $88.94B. It provides a range of banking and financial services, primarily in the United Kingdom, to personal and corporate customers. Its main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. It also operates an international banking business with a global footprint in over 30 countries.
9. Credit Suisse Group AG (CS): Investment Services industry with a market cap of $42.34B. Cash and Equivalents at $87.16B. It provides advisory services, solutions and products to companies, institutional clients and private clients globally, as well as to the retail clients in Switzerland. It operates in three business segments: Private Banking, Investment Banking and Asset Management.
10. HSBC Holdings PLC (HBC): Regional Banks industry with a market cap of $177.94B. Cash and Equivalents at $71.75B. It is a global banking and financial services organizations. As of December 31, 2010, it provided a range of financial services to around 95 million customers through two customer groups, Personal Financial Services (PFS), including consumer finance, and Commercial Banking (CMB), and two global businesses, Global Banking and Markets (GB&M), and Global Private Banking (GPB). As of December 31, 2010, the Company had an international network of some 7,500 offices in 87 countries and territories in six geographical regions; Europe, Hong Kong, Rest of Asia-Pacific, the Middle East, North America and Latin America.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
US Senate Set to Vote on US Debt Ceiling Bill
The U.S. Senate will vote Tuesday on a compromise bill to cut government spending and raise the nation's borrowing limit, bringing a likely end to weeks of fear over a potential American debt default.
The Senate is expected to vote on the deal at noon local time, just 12 hours before the government says it will run out of money to pay its bills.
On Monday night, the bill passed its biggest test when the Republican-led House of Representatives approved it by a vote of 269 to 161.
If the legislation passes the Senate Tuesday, it will be sent to President Barack Obama, who has said he is anxious to sign the bill.
The deal would allow the government to continue borrowing money through 2012 in exchange for spending cuts of almost $1 trillion over the next 10 years.
The package would also create a bipartisan budget committee tasked with finding additional cuts of $1.5 trillion. If the panel fails to reach an agreement, then the deal would trigger additional spending cuts.
Although party leaders say they expect the deal to pass its final hurdle in the Senate, many lawmakers are still reluctant to support it. Some conservatives say the package does not cut enough spending, and liberals complain the cuts are too deep and that the bill does not raise taxes on the rich.
Meanwhile, it is not clear if the deal contains enough spending cuts to avoid a downgraded credit rating. Standard & Poor's credit rating agency had threatened to downgrade America's AAA rating unless Congress passed at least $4 trillion in deficit cuts.
A downgraded credit rating would mean it would cost more for the government to borrow money, which could in turn raise interest rates on many consumer loans
The Senate is expected to vote on the deal at noon local time, just 12 hours before the government says it will run out of money to pay its bills.
On Monday night, the bill passed its biggest test when the Republican-led House of Representatives approved it by a vote of 269 to 161.
U.S. Debt Deal Facts
|
If the legislation passes the Senate Tuesday, it will be sent to President Barack Obama, who has said he is anxious to sign the bill.
The deal would allow the government to continue borrowing money through 2012 in exchange for spending cuts of almost $1 trillion over the next 10 years.
The package would also create a bipartisan budget committee tasked with finding additional cuts of $1.5 trillion. If the panel fails to reach an agreement, then the deal would trigger additional spending cuts.
Although party leaders say they expect the deal to pass its final hurdle in the Senate, many lawmakers are still reluctant to support it. Some conservatives say the package does not cut enough spending, and liberals complain the cuts are too deep and that the bill does not raise taxes on the rich.
Meanwhile, it is not clear if the deal contains enough spending cuts to avoid a downgraded credit rating. Standard & Poor's credit rating agency had threatened to downgrade America's AAA rating unless Congress passed at least $4 trillion in deficit cuts.
A downgraded credit rating would mean it would cost more for the government to borrow money, which could in turn raise interest rates on many consumer loans
US Senate Set to Vote on US Debt Ceiling Bill
The U.S. Senate will vote Tuesday on a compromise bill to cut government spending and raise the nation's borrowing limit, bringing a likely end to weeks of fear over a potential American debt default.
The Senate is expected to vote on the deal at noon local time, just 12 hours before the government says it will run out of money to pay its bills.
On Monday night, the bill passed its biggest test when the Republican-led House of Representatives approved it by a vote of 269 to 161.
If the legislation passes the Senate Tuesday, it will be sent to President Barack Obama, who has said he is anxious to sign the bill.
The deal would allow the government to continue borrowing money through 2012 in exchange for spending cuts of almost $1 trillion over the next 10 years.
The package would also create a bipartisan budget committee tasked with finding additional cuts of $1.5 trillion. If the panel fails to reach an agreement, then the deal would trigger additional spending cuts.
Although party leaders say they expect the deal to pass its final hurdle in the Senate, many lawmakers are still reluctant to support it. Some conservatives say the package does not cut enough spending, and liberals complain the cuts are too deep and that the bill does not raise taxes on the rich.
Meanwhile, it is not clear if the deal contains enough spending cuts to avoid a downgraded credit rating. Standard & Poor's credit rating agency had threatened to downgrade America's AAA rating unless Congress passed at least $4 trillion in deficit cuts.
A downgraded credit rating would mean it would cost more for the government to borrow money, which could in turn raise interest rates on many consumer loans
The Senate is expected to vote on the deal at noon local time, just 12 hours before the government says it will run out of money to pay its bills.
On Monday night, the bill passed its biggest test when the Republican-led House of Representatives approved it by a vote of 269 to 161.
U.S. Debt Deal Facts
|
If the legislation passes the Senate Tuesday, it will be sent to President Barack Obama, who has said he is anxious to sign the bill.
The deal would allow the government to continue borrowing money through 2012 in exchange for spending cuts of almost $1 trillion over the next 10 years.
The package would also create a bipartisan budget committee tasked with finding additional cuts of $1.5 trillion. If the panel fails to reach an agreement, then the deal would trigger additional spending cuts.
Although party leaders say they expect the deal to pass its final hurdle in the Senate, many lawmakers are still reluctant to support it. Some conservatives say the package does not cut enough spending, and liberals complain the cuts are too deep and that the bill does not raise taxes on the rich.
Meanwhile, it is not clear if the deal contains enough spending cuts to avoid a downgraded credit rating. Standard & Poor's credit rating agency had threatened to downgrade America's AAA rating unless Congress passed at least $4 trillion in deficit cuts.
A downgraded credit rating would mean it would cost more for the government to borrow money, which could in turn raise interest rates on many consumer loans
Monday, 1 August 2011
US Congress Prepares for High-Stakes Debt Votes
The White House and congressional leaders of both major political parties are pressing rank-and-file legislators to support a last-gasp bipartisan deal to trim U.S. government spending and raise the federal borrowing limit. Votes are expected in both houses of Congress ahead of Tuesday’s deadline to raise the debt ceiling or risk a possible default on U.S. obligations.
Financial “Armageddon”
One day before the United States faces what President Barack Obama has called financial “Armageddon,” congressional passage of the compromise debt bill is far from assured. In a final effort to round up wavering votes, Obama dispatched Vice President Joseph Biden to Capitol Hill to address Democratic lawmakers from both chambers.
Biden was asked if he believes the bill cutting trillions of dollars in federal spending and extending the borrowing limit through next year will pass.
“Oh, that is up to the House [of Representatives],” he said.
It is in the Republican-controlled House of Representatives where the vote count is expected to be particularly close, given fierce opposition already expressed by its most conservative Republican - and progressive Democratic - members.
Mikulski: far from enthusiastic
But even in the Senate, the vice president clearly had convincing to do. Democratic Senator Barbara Mikulski of Maryland says she does not want to risk a downgrade of the U.S. credit rating, but is far from enthusiastic about proposed cuts in federal spending that could harm the poor and vulnerable.
“I also need to know more about just where we are heading in terms of what these [budget] cuts mean,” she said.
Tea Party
On the Republican side, several members of the fiscally conservative Tea Party faction say the bill does not go far enough to rein in what they see as an out-of-control Washington spending binge. Senator Marco Rubio of Florida says he will vote ‘no’.
“I ran [for office] because I wanted this country to be put on a sustainable spending path. This bill does not do that," said Rubio. "There will come a time when we [the U.S. government] will not be able to borrow money, not because of the debt limit, but because our lenders will not lend it to us anymore. This plan does nothing to prevent that day from coming.”
Compromise
In announcing the agreement late Sunday, President Obama said the deal is far from perfect, but better than doing nothing and watching the nation fall into financial ruin. Senate Majority Leader Harry Reid echoed that message Monday.
“No one got what they wanted. Everyone had to give something up. It was a compromise," said Reid. "It is not always easy to get two sides to reach consensus. But that is what we did. We did it on a bipartisan basis.”
Republican congressional leaders who helped negotiate the deal with the White House and their Democratic counterparts say the bill achieves less in deficit reduction than they had hoped. But they note the bill contains no tax increases, a key Republican demand from the beginning of contentious negotiations that lasted several months.
Two rounds of spending cuts
If enacted, the bill provides for two rounds of spending cuts. The first round would produce $900 billion in budget savings over 10 years. The bill mandates the creation of a bipartisan congressional committee to identify more than a trillion in additional deficit reduction that would be subject to an up-or-down vote at the end of this year. The bill forces automatic cuts if the committee is unable to reach an agreement.
In return for deficit reduction, the bill would raise the U.S. debt ceiling by more than $2 trillion, enough to assure the federal government’s solvency through next year’s national elections. The U.S. national debt stands at $14.3 trillion.
Financial “Armageddon”
One day before the United States faces what President Barack Obama has called financial “Armageddon,” congressional passage of the compromise debt bill is far from assured. In a final effort to round up wavering votes, Obama dispatched Vice President Joseph Biden to Capitol Hill to address Democratic lawmakers from both chambers.
White House/David Lienemann
US Vice President Joe Biden records the weekly speech, May 27 2011Biden was asked if he believes the bill cutting trillions of dollars in federal spending and extending the borrowing limit through next year will pass.
“Oh, that is up to the House [of Representatives],” he said.
It is in the Republican-controlled House of Representatives where the vote count is expected to be particularly close, given fierce opposition already expressed by its most conservative Republican - and progressive Democratic - members.
Mikulski: far from enthusiastic
U.S. Debt Deal Facts
|
“I also need to know more about just where we are heading in terms of what these [budget] cuts mean,” she said.
Tea Party
On the Republican side, several members of the fiscally conservative Tea Party faction say the bill does not go far enough to rein in what they see as an out-of-control Washington spending binge. Senator Marco Rubio of Florida says he will vote ‘no’.
“I ran [for office] because I wanted this country to be put on a sustainable spending path. This bill does not do that," said Rubio. "There will come a time when we [the U.S. government] will not be able to borrow money, not because of the debt limit, but because our lenders will not lend it to us anymore. This plan does nothing to prevent that day from coming.”
Compromise
AP
President Barack Obama sits with House Speaker John Boehner of Ohio (L), as he met with Republican and Democratic leaders regarding the debt ceiling, at the White House (File Photo - July 14, 2011)In announcing the agreement late Sunday, President Obama said the deal is far from perfect, but better than doing nothing and watching the nation fall into financial ruin. Senate Majority Leader Harry Reid echoed that message Monday.
“No one got what they wanted. Everyone had to give something up. It was a compromise," said Reid. "It is not always easy to get two sides to reach consensus. But that is what we did. We did it on a bipartisan basis.”
Republican congressional leaders who helped negotiate the deal with the White House and their Democratic counterparts say the bill achieves less in deficit reduction than they had hoped. But they note the bill contains no tax increases, a key Republican demand from the beginning of contentious negotiations that lasted several months.
Two rounds of spending cuts
If enacted, the bill provides for two rounds of spending cuts. The first round would produce $900 billion in budget savings over 10 years. The bill mandates the creation of a bipartisan congressional committee to identify more than a trillion in additional deficit reduction that would be subject to an up-or-down vote at the end of this year. The bill forces automatic cuts if the committee is unable to reach an agreement.
In return for deficit reduction, the bill would raise the U.S. debt ceiling by more than $2 trillion, enough to assure the federal government’s solvency through next year’s national elections. The U.S. national debt stands at $14.3 trillion.
US Congress Prepares for High-Stakes Debt Votes
The White House and congressional leaders of both major political parties are pressing rank-and-file legislators to support a last-gasp bipartisan deal to trim U.S. government spending and raise the federal borrowing limit. Votes are expected in both houses of Congress ahead of Tuesday’s deadline to raise the debt ceiling or risk a possible default on U.S. obligations.
Financial “Armageddon”
One day before the United States faces what President Barack Obama has called financial “Armageddon,” congressional passage of the compromise debt bill is far from assured. In a final effort to round up wavering votes, Obama dispatched Vice President Joseph Biden to Capitol Hill to address Democratic lawmakers from both chambers.
Biden was asked if he believes the bill cutting trillions of dollars in federal spending and extending the borrowing limit through next year will pass.
“Oh, that is up to the House [of Representatives],” he said.
It is in the Republican-controlled House of Representatives where the vote count is expected to be particularly close, given fierce opposition already expressed by its most conservative Republican - and progressive Democratic - members.
Mikulski: far from enthusiastic
But even in the Senate, the vice president clearly had convincing to do. Democratic Senator Barbara Mikulski of Maryland says she does not want to risk a downgrade of the U.S. credit rating, but is far from enthusiastic about proposed cuts in federal spending that could harm the poor and vulnerable.
“I also need to know more about just where we are heading in terms of what these [budget] cuts mean,” she said.
Tea Party
On the Republican side, several members of the fiscally conservative Tea Party faction say the bill does not go far enough to rein in what they see as an out-of-control Washington spending binge. Senator Marco Rubio of Florida says he will vote ‘no’.
“I ran [for office] because I wanted this country to be put on a sustainable spending path. This bill does not do that," said Rubio. "There will come a time when we [the U.S. government] will not be able to borrow money, not because of the debt limit, but because our lenders will not lend it to us anymore. This plan does nothing to prevent that day from coming.”
Compromise
In announcing the agreement late Sunday, President Obama said the deal is far from perfect, but better than doing nothing and watching the nation fall into financial ruin. Senate Majority Leader Harry Reid echoed that message Monday.
“No one got what they wanted. Everyone had to give something up. It was a compromise," said Reid. "It is not always easy to get two sides to reach consensus. But that is what we did. We did it on a bipartisan basis.”
Republican congressional leaders who helped negotiate the deal with the White House and their Democratic counterparts say the bill achieves less in deficit reduction than they had hoped. But they note the bill contains no tax increases, a key Republican demand from the beginning of contentious negotiations that lasted several months.
Two rounds of spending cuts
If enacted, the bill provides for two rounds of spending cuts. The first round would produce $900 billion in budget savings over 10 years. The bill mandates the creation of a bipartisan congressional committee to identify more than a trillion in additional deficit reduction that would be subject to an up-or-down vote at the end of this year. The bill forces automatic cuts if the committee is unable to reach an agreement.
In return for deficit reduction, the bill would raise the U.S. debt ceiling by more than $2 trillion, enough to assure the federal government’s solvency through next year’s national elections. The U.S. national debt stands at $14.3 trillion.
Financial “Armageddon”
One day before the United States faces what President Barack Obama has called financial “Armageddon,” congressional passage of the compromise debt bill is far from assured. In a final effort to round up wavering votes, Obama dispatched Vice President Joseph Biden to Capitol Hill to address Democratic lawmakers from both chambers.
White House/David Lienemann
US Vice President Joe Biden records the weekly speech, May 27 2011Biden was asked if he believes the bill cutting trillions of dollars in federal spending and extending the borrowing limit through next year will pass.
“Oh, that is up to the House [of Representatives],” he said.
It is in the Republican-controlled House of Representatives where the vote count is expected to be particularly close, given fierce opposition already expressed by its most conservative Republican - and progressive Democratic - members.
Mikulski: far from enthusiastic
U.S. Debt Deal Facts
|
“I also need to know more about just where we are heading in terms of what these [budget] cuts mean,” she said.
Tea Party
On the Republican side, several members of the fiscally conservative Tea Party faction say the bill does not go far enough to rein in what they see as an out-of-control Washington spending binge. Senator Marco Rubio of Florida says he will vote ‘no’.
“I ran [for office] because I wanted this country to be put on a sustainable spending path. This bill does not do that," said Rubio. "There will come a time when we [the U.S. government] will not be able to borrow money, not because of the debt limit, but because our lenders will not lend it to us anymore. This plan does nothing to prevent that day from coming.”
Compromise
AP
President Barack Obama sits with House Speaker John Boehner of Ohio (L), as he met with Republican and Democratic leaders regarding the debt ceiling, at the White House (File Photo - July 14, 2011)In announcing the agreement late Sunday, President Obama said the deal is far from perfect, but better than doing nothing and watching the nation fall into financial ruin. Senate Majority Leader Harry Reid echoed that message Monday.
“No one got what they wanted. Everyone had to give something up. It was a compromise," said Reid. "It is not always easy to get two sides to reach consensus. But that is what we did. We did it on a bipartisan basis.”
Republican congressional leaders who helped negotiate the deal with the White House and their Democratic counterparts say the bill achieves less in deficit reduction than they had hoped. But they note the bill contains no tax increases, a key Republican demand from the beginning of contentious negotiations that lasted several months.
Two rounds of spending cuts
If enacted, the bill provides for two rounds of spending cuts. The first round would produce $900 billion in budget savings over 10 years. The bill mandates the creation of a bipartisan congressional committee to identify more than a trillion in additional deficit reduction that would be subject to an up-or-down vote at the end of this year. The bill forces automatic cuts if the committee is unable to reach an agreement.
In return for deficit reduction, the bill would raise the U.S. debt ceiling by more than $2 trillion, enough to assure the federal government’s solvency through next year’s national elections. The U.S. national debt stands at $14.3 trillion.
White House, congressional leaders reach debt-limit deal
President Obama and congressional leaders Sunday night sealed a deal to raise the federal debt limit that includes sharp spending cuts but no new taxes, breaking a partisan impasse that has driven the nation to the brink of a government default.
The agreement brings to an end a self-created crisis that has consumed Washington, rattled Wall Street, and shaken confidence in the American political system at home and abroad. The deal could clear Congress as soon as Monday night — barely 24 hours before Treasury officials have said they could begin running short of cash to pay the nation’s bills.
Passage of the agreement, however, remained far from certain in the House, where skeptical Republicans were just beginning to digest the details.
“This process has been messy. It’s taken far too long,” President Obama said in brief remarks at the White House. “Nevertheless, ultimately, the leaders of both parties have found their way toward compromise, and I want to thank them for that.
Obama said the agreement “will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face this same kind of crisis again in six months, or eight months, or12 months. And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy.”
The deal was negotiated primarily by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.). It teetered all day on the edge of completion as House Speaker John A. Boehner (R-Ohio) bickered with Democrats over whether to freeze next year’s defense budget.
In the end, Boehner conceded the point, and Obama finalized the agreement in phone calls to each of the four congressional leaders shortly after 8 p.m.
The agreement would raise the $14.3 trillion debt limit in two stages by as much as $2.4 trillion. It represents a victory for Obama, allowing him to avoid another grueling fight over the debt limit in the heat of the 2012 presidential campaign.
But he failed to secure other top priorities, including fresh measures to revive the flagging recovery and an end to tax breaks for corporations and the wealthy. Obama said he would pursue those goals later this year, when, under the terms of the deal, a new congressional committee would begin searching for further ways to control the national debt.
“The ultimate solution to our deficit problem must be balanced,” Obama said Sunday. “That’s why the second part of this agreement is so important.”
Republicans, by contrast, won severe cuts to agency budgets over the next decade and the prospect of deeper cuts to come, delivering on the campaign promises that helped them gain control of the House in the fall congressional elections. Democrats also agreed to stage a vote on a balanced-budget amendment, which has become a rallying point for tea-party-aligned conservatives.
End of the impasse
The deal ends a painful political stalemate that had been in the making since the new GOP majority took control of the House in January. After a bitter showdown over this year’s budget nearly shut down the government in April, the parties launched into the debt-limit battle.
The agreement brings to an end a self-created crisis that has consumed Washington, rattled Wall Street, and shaken confidence in the American political system at home and abroad. The deal could clear Congress as soon as Monday night — barely 24 hours before Treasury officials have said they could begin running short of cash to pay the nation’s bills.
2749
Comments
- Weigh In
- Corrections?
President Barack Obama says a deal has been reached to raise the government's debt ceiling and avoid a default. He said the deal includes more than $2 trillion in gradual spending cuts and no initial cuts to Social Security and Medicare. (July 31)
Highlights of the deal.
“This process has been messy. It’s taken far too long,” President Obama said in brief remarks at the White House. “Nevertheless, ultimately, the leaders of both parties have found their way toward compromise, and I want to thank them for that.
Obama said the agreement “will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face this same kind of crisis again in six months, or eight months, or12 months. And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy.”
The deal was negotiated primarily by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.). It teetered all day on the edge of completion as House Speaker John A. Boehner (R-Ohio) bickered with Democrats over whether to freeze next year’s defense budget.
In the end, Boehner conceded the point, and Obama finalized the agreement in phone calls to each of the four congressional leaders shortly after 8 p.m.
The agreement would raise the $14.3 trillion debt limit in two stages by as much as $2.4 trillion. It represents a victory for Obama, allowing him to avoid another grueling fight over the debt limit in the heat of the 2012 presidential campaign.
But he failed to secure other top priorities, including fresh measures to revive the flagging recovery and an end to tax breaks for corporations and the wealthy. Obama said he would pursue those goals later this year, when, under the terms of the deal, a new congressional committee would begin searching for further ways to control the national debt.
“The ultimate solution to our deficit problem must be balanced,” Obama said Sunday. “That’s why the second part of this agreement is so important.”
Republicans, by contrast, won severe cuts to agency budgets over the next decade and the prospect of deeper cuts to come, delivering on the campaign promises that helped them gain control of the House in the fall congressional elections. Democrats also agreed to stage a vote on a balanced-budget amendment, which has become a rallying point for tea-party-aligned conservatives.
End of the impasse
The deal ends a painful political stalemate that had been in the making since the new GOP majority took control of the House in January. After a bitter showdown over this year’s budget nearly shut down the government in April, the parties launched into the debt-limit battle.
White House, congressional leaders reach debt-limit deal
President Obama and congressional leaders Sunday night sealed a deal to raise the federal debt limit that includes sharp spending cuts but no new taxes, breaking a partisan impasse that has driven the nation to the brink of a government default.
The agreement brings to an end a self-created crisis that has consumed Washington, rattled Wall Street, and shaken confidence in the American political system at home and abroad. The deal could clear Congress as soon as Monday night — barely 24 hours before Treasury officials have said they could begin running short of cash to pay the nation’s bills.
Passage of the agreement, however, remained far from certain in the House, where skeptical Republicans were just beginning to digest the details.
“This process has been messy. It’s taken far too long,” President Obama said in brief remarks at the White House. “Nevertheless, ultimately, the leaders of both parties have found their way toward compromise, and I want to thank them for that.
Obama said the agreement “will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face this same kind of crisis again in six months, or eight months, or12 months. And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy.”
The deal was negotiated primarily by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.). It teetered all day on the edge of completion as House Speaker John A. Boehner (R-Ohio) bickered with Democrats over whether to freeze next year’s defense budget.
In the end, Boehner conceded the point, and Obama finalized the agreement in phone calls to each of the four congressional leaders shortly after 8 p.m.
The agreement would raise the $14.3 trillion debt limit in two stages by as much as $2.4 trillion. It represents a victory for Obama, allowing him to avoid another grueling fight over the debt limit in the heat of the 2012 presidential campaign.
But he failed to secure other top priorities, including fresh measures to revive the flagging recovery and an end to tax breaks for corporations and the wealthy. Obama said he would pursue those goals later this year, when, under the terms of the deal, a new congressional committee would begin searching for further ways to control the national debt.
“The ultimate solution to our deficit problem must be balanced,” Obama said Sunday. “That’s why the second part of this agreement is so important.”
Republicans, by contrast, won severe cuts to agency budgets over the next decade and the prospect of deeper cuts to come, delivering on the campaign promises that helped them gain control of the House in the fall congressional elections. Democrats also agreed to stage a vote on a balanced-budget amendment, which has become a rallying point for tea-party-aligned conservatives.
End of the impasse
The deal ends a painful political stalemate that had been in the making since the new GOP majority took control of the House in January. After a bitter showdown over this year’s budget nearly shut down the government in April, the parties launched into the debt-limit battle.
The agreement brings to an end a self-created crisis that has consumed Washington, rattled Wall Street, and shaken confidence in the American political system at home and abroad. The deal could clear Congress as soon as Monday night — barely 24 hours before Treasury officials have said they could begin running short of cash to pay the nation’s bills.
President Barack Obama says a deal has been reached to raise the government's debt ceiling and avoid a default. He said the deal includes more than $2 trillion in gradual spending cuts and no initial cuts to Social Security and Medicare. (July 31)
Highlights of the deal.
“This process has been messy. It’s taken far too long,” President Obama said in brief remarks at the White House. “Nevertheless, ultimately, the leaders of both parties have found their way toward compromise, and I want to thank them for that.
Obama said the agreement “will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face this same kind of crisis again in six months, or eight months, or12 months. And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy.”
The deal was negotiated primarily by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.). It teetered all day on the edge of completion as House Speaker John A. Boehner (R-Ohio) bickered with Democrats over whether to freeze next year’s defense budget.
In the end, Boehner conceded the point, and Obama finalized the agreement in phone calls to each of the four congressional leaders shortly after 8 p.m.
The agreement would raise the $14.3 trillion debt limit in two stages by as much as $2.4 trillion. It represents a victory for Obama, allowing him to avoid another grueling fight over the debt limit in the heat of the 2012 presidential campaign.
But he failed to secure other top priorities, including fresh measures to revive the flagging recovery and an end to tax breaks for corporations and the wealthy. Obama said he would pursue those goals later this year, when, under the terms of the deal, a new congressional committee would begin searching for further ways to control the national debt.
“The ultimate solution to our deficit problem must be balanced,” Obama said Sunday. “That’s why the second part of this agreement is so important.”
Republicans, by contrast, won severe cuts to agency budgets over the next decade and the prospect of deeper cuts to come, delivering on the campaign promises that helped them gain control of the House in the fall congressional elections. Democrats also agreed to stage a vote on a balanced-budget amendment, which has become a rallying point for tea-party-aligned conservatives.
End of the impasse
The deal ends a painful political stalemate that had been in the making since the new GOP majority took control of the House in January. After a bitter showdown over this year’s budget nearly shut down the government in April, the parties launched into the debt-limit battle.
Obama: Agreement has been reached on raising debt limit
In an evening news conference, President Obama says the debt ceiling deal is not the one he would have preferred, but it will "allow us to avoid default and end the crisis Washington imposed on the rest of America."
Obama: Agreement has been reached on raising debt limit
In an evening news conference, President Obama says the debt ceiling deal is not the one he would have preferred, but it will "allow us to avoid default and end the crisis Washington imposed on the rest of America."
Reid declares debt deal is finished
Senate Majority Leader Harry M. Reid said Sunday evening that all congressional leaders had agreed to a compromise plan to lift the debt ceiling. "We're moving forward together," Reid said. Immediately afterward, Minority Leader Mitch McConnell declared "there is now a framework" for a deal.
Reid declares debt deal is finished
Senate Majority Leader Harry M. Reid said Sunday evening that all congressional leaders had agreed to a compromise plan to lift the debt ceiling. "We're moving forward together," Reid said. Immediately afterward, Minority Leader Mitch McConnell declared "there is now a framework" for a deal.
Monday, 25 July 2011
Obama, Republicans Still Wrangling Over Debt Solution
U.S. President Barack Obama on Saturday urged Congress to enter into what he called "shared compromise " in an effort to solve the country's debt and deficit problems.
In his weekly address, Mr. Obama said he is willing to do whatever it takes to solve the problem, even if it is not politically popular. But he also noted the wealthiest Americans must "pay their fair share."
Watch President Obama's weekly address:
A White House official said President Obama, Vice President Joe Biden, and other administration officials were discussing "various options" with congressional leaders from both parties. However, no new talks were scheduled for Sunday.
With an August 2 deadline approaching to raise the $14.3 trillion debt ceiling or allow the United States to default, the two sides appear far from an agreement.
Mr. Obama said earlier he would consider cuts in popular entitlements including pensions, health care for the elderly, and aid to veterans. In return, the president has called for higher taxes on wealthy Americans and large corporations. Republicans rejected the move saying it would hurt the economic recovery.
In the weekly Republican address, Senator Orrin Hatch of Utah blamed Democrats for the financial mess and said the president and his Democratic allies in Congress need to come up with a serious plan to control runaway spending. Hatch said that cutting spending, limiting expenditures and requiring balanced budgets is the only long-term solution to the problem.
Watch the Republican weekly address:
Speaker of the House of Representatives, Republican John Boehner, said Friday the House will vote next week on a $2.4 trillion measure to raise the debt ceiling through 2012 if Congress passes a Balanced Budget Amendment to the Constitution.
President Obama said getting such major cuts without increasing revenue would cause unacceptably deep cuts in programs that are vital to many Americans. He also said elected officials do not need a constitutional amendment to make the tough spending decisions that are a key part of their jobs.
Meanwhile, credit rating agencies have warned that the U.S. government's credit rating would be downgraded if an agreement is not reached soon.
In his weekly address, Mr. Obama said he is willing to do whatever it takes to solve the problem, even if it is not politically popular. But he also noted the wealthiest Americans must "pay their fair share."
Watch President Obama's weekly address:
A White House official said President Obama, Vice President Joe Biden, and other administration officials were discussing "various options" with congressional leaders from both parties. However, no new talks were scheduled for Sunday.
With an August 2 deadline approaching to raise the $14.3 trillion debt ceiling or allow the United States to default, the two sides appear far from an agreement.
Mr. Obama said earlier he would consider cuts in popular entitlements including pensions, health care for the elderly, and aid to veterans. In return, the president has called for higher taxes on wealthy Americans and large corporations. Republicans rejected the move saying it would hurt the economic recovery.
In the weekly Republican address, Senator Orrin Hatch of Utah blamed Democrats for the financial mess and said the president and his Democratic allies in Congress need to come up with a serious plan to control runaway spending. Hatch said that cutting spending, limiting expenditures and requiring balanced budgets is the only long-term solution to the problem.
Watch the Republican weekly address:
Speaker of the House of Representatives, Republican John Boehner, said Friday the House will vote next week on a $2.4 trillion measure to raise the debt ceiling through 2012 if Congress passes a Balanced Budget Amendment to the Constitution.
President Obama said getting such major cuts without increasing revenue would cause unacceptably deep cuts in programs that are vital to many Americans. He also said elected officials do not need a constitutional amendment to make the tough spending decisions that are a key part of their jobs.
Meanwhile, credit rating agencies have warned that the U.S. government's credit rating would be downgraded if an agreement is not reached soon.
Obama, Republicans Still Wrangling Over Debt Solution
U.S. President Barack Obama on Saturday urged Congress to enter into what he called "shared compromise " in an effort to solve the country's debt and deficit problems.
In his weekly address, Mr. Obama said he is willing to do whatever it takes to solve the problem, even if it is not politically popular. But he also noted the wealthiest Americans must "pay their fair share."
Watch President Obama's weekly address:
A White House official said President Obama, Vice President Joe Biden, and other administration officials were discussing "various options" with congressional leaders from both parties. However, no new talks were scheduled for Sunday.
With an August 2 deadline approaching to raise the $14.3 trillion debt ceiling or allow the United States to default, the two sides appear far from an agreement.
Mr. Obama said earlier he would consider cuts in popular entitlements including pensions, health care for the elderly, and aid to veterans. In return, the president has called for higher taxes on wealthy Americans and large corporations. Republicans rejected the move saying it would hurt the economic recovery.
In the weekly Republican address, Senator Orrin Hatch of Utah blamed Democrats for the financial mess and said the president and his Democratic allies in Congress need to come up with a serious plan to control runaway spending. Hatch said that cutting spending, limiting expenditures and requiring balanced budgets is the only long-term solution to the problem.
Watch the Republican weekly address:
Speaker of the House of Representatives, Republican John Boehner, said Friday the House will vote next week on a $2.4 trillion measure to raise the debt ceiling through 2012 if Congress passes a Balanced Budget Amendment to the Constitution.
President Obama said getting such major cuts without increasing revenue would cause unacceptably deep cuts in programs that are vital to many Americans. He also said elected officials do not need a constitutional amendment to make the tough spending decisions that are a key part of their jobs.
Meanwhile, credit rating agencies have warned that the U.S. government's credit rating would be downgraded if an agreement is not reached soon.
In his weekly address, Mr. Obama said he is willing to do whatever it takes to solve the problem, even if it is not politically popular. But he also noted the wealthiest Americans must "pay their fair share."
Watch President Obama's weekly address:
A White House official said President Obama, Vice President Joe Biden, and other administration officials were discussing "various options" with congressional leaders from both parties. However, no new talks were scheduled for Sunday.
With an August 2 deadline approaching to raise the $14.3 trillion debt ceiling or allow the United States to default, the two sides appear far from an agreement.
Mr. Obama said earlier he would consider cuts in popular entitlements including pensions, health care for the elderly, and aid to veterans. In return, the president has called for higher taxes on wealthy Americans and large corporations. Republicans rejected the move saying it would hurt the economic recovery.
In the weekly Republican address, Senator Orrin Hatch of Utah blamed Democrats for the financial mess and said the president and his Democratic allies in Congress need to come up with a serious plan to control runaway spending. Hatch said that cutting spending, limiting expenditures and requiring balanced budgets is the only long-term solution to the problem.
Watch the Republican weekly address:
Speaker of the House of Representatives, Republican John Boehner, said Friday the House will vote next week on a $2.4 trillion measure to raise the debt ceiling through 2012 if Congress passes a Balanced Budget Amendment to the Constitution.
President Obama said getting such major cuts without increasing revenue would cause unacceptably deep cuts in programs that are vital to many Americans. He also said elected officials do not need a constitutional amendment to make the tough spending decisions that are a key part of their jobs.
Meanwhile, credit rating agencies have warned that the U.S. government's credit rating would be downgraded if an agreement is not reached soon.
White House and Congressional Leaders: No Default on US Debt
The White House and congressional leaders remain adamant the United States will not default on its $14.3 trillion national debt, less than three weeks before a deadline for raising the federal borrowing limit. But a bipartisan deal to put the nation on a sustainable fiscal path shows no sign of materializing.
On one point top Democrats and Republicans agree: failing to raise America’s debt ceiling in time to avert a default on federal obligations is unthinkable. Jacob Lew is President Barack Obama’s top budget official. "All the leaders of Congress and the president have acknowledged that we must raise the debt limit, and the question is how," he said.
Lew spoke on ABC’s This Week television program.
The Senate’s number-two Republican, Jon Kyl, had a similar message. “The country will not default. Whether or not there are savings achieved in the process remains open to question," he said.
Weeks of negotiations have failed to yield a so-called “grand bargain” to trim U.S. budget deficits by $4 trillion over 10 years. The impasse has prompted several fallback plans to raise the debt ceiling if the $4 trillion target is not met.
Senate leaders are negotiating a plan that would allow President Obama to extend the federal borrowing limit even if majority votes in Congress do not materialize authorizing such a move. In the Republican-controlled House of Representatives, a vote is expected later this week that would tie a debt ceiling increase to a more-modest deficit reduction target, as well as a constitutional amendment requiring a balanced budget.
Neither plan of last resort is seen as solving America’s fiscal woes. Appearing on CBS’ Face The Nation program, Republican Senator Tom Coburn of Oklahoma criticized any attempt to shield Congress from painful votes to raise the borrowing limit. “It takes the pressure off all the politicians. It allows us to pass a debt limit [increase] without making the hard choices that this country has to make," he said.
Another Republican, Senator Marco Rubio of Florida, blasted any scaling back of deficit reduction goals. “The real problem here is not the debt limit. The real problem here is the debt. If all we do is raise the debt limit, and it is not accompanied by a credible solution to America’s debt problem, we are in big trouble," he said.
August 2 is the deadline for raising the federal government’s borrowing limit. Beyond that date, treasury officials say the U.S. government risks default.
Some Republican lawmakers have questioned this assertion, saying the United States could service the national debt and fulfill core obligations using tax revenue alone. Democrats and the White House dispute the claim, saying the government would have to choose between interest payments on the debt, funding programs that provide income and health care for retirees, and funding the U.S. military.
Office of Management and Budget Director Jacob Lew says there is still time strike a deal and avert financial ruin. But he adds that time is running out. “It is kind of unfortunate that things always have to get to the last minute. Sometimes there are no consequences. Right now, we are in a place where the world is watching, and we should get our business done," he said.
Credit ratings agencies have warned of a possible downgrading of U.S. debt, which would make U.S. Treasury bonds less attractive to investors and creditor nations and require higher interest rates to attract purchasers. Economists warn that higher interest rates would cripple America’s shaky economic recovery.
On one point top Democrats and Republicans agree: failing to raise America’s debt ceiling in time to avert a default on federal obligations is unthinkable. Jacob Lew is President Barack Obama’s top budget official. "All the leaders of Congress and the president have acknowledged that we must raise the debt limit, and the question is how," he said.
Lew spoke on ABC’s This Week television program.
The Senate’s number-two Republican, Jon Kyl, had a similar message. “The country will not default. Whether or not there are savings achieved in the process remains open to question," he said.
Weeks of negotiations have failed to yield a so-called “grand bargain” to trim U.S. budget deficits by $4 trillion over 10 years. The impasse has prompted several fallback plans to raise the debt ceiling if the $4 trillion target is not met.
Senate leaders are negotiating a plan that would allow President Obama to extend the federal borrowing limit even if majority votes in Congress do not materialize authorizing such a move. In the Republican-controlled House of Representatives, a vote is expected later this week that would tie a debt ceiling increase to a more-modest deficit reduction target, as well as a constitutional amendment requiring a balanced budget.
Neither plan of last resort is seen as solving America’s fiscal woes. Appearing on CBS’ Face The Nation program, Republican Senator Tom Coburn of Oklahoma criticized any attempt to shield Congress from painful votes to raise the borrowing limit. “It takes the pressure off all the politicians. It allows us to pass a debt limit [increase] without making the hard choices that this country has to make," he said.
Another Republican, Senator Marco Rubio of Florida, blasted any scaling back of deficit reduction goals. “The real problem here is not the debt limit. The real problem here is the debt. If all we do is raise the debt limit, and it is not accompanied by a credible solution to America’s debt problem, we are in big trouble," he said.
August 2 is the deadline for raising the federal government’s borrowing limit. Beyond that date, treasury officials say the U.S. government risks default.
Some Republican lawmakers have questioned this assertion, saying the United States could service the national debt and fulfill core obligations using tax revenue alone. Democrats and the White House dispute the claim, saying the government would have to choose between interest payments on the debt, funding programs that provide income and health care for retirees, and funding the U.S. military.
Office of Management and Budget Director Jacob Lew says there is still time strike a deal and avert financial ruin. But he adds that time is running out. “It is kind of unfortunate that things always have to get to the last minute. Sometimes there are no consequences. Right now, we are in a place where the world is watching, and we should get our business done," he said.
Credit ratings agencies have warned of a possible downgrading of U.S. debt, which would make U.S. Treasury bonds less attractive to investors and creditor nations and require higher interest rates to attract purchasers. Economists warn that higher interest rates would cripple America’s shaky economic recovery.
White House and Congressional Leaders: No Default on US Debt
The White House and congressional leaders remain adamant the United States will not default on its $14.3 trillion national debt, less than three weeks before a deadline for raising the federal borrowing limit. But a bipartisan deal to put the nation on a sustainable fiscal path shows no sign of materializing.
On one point top Democrats and Republicans agree: failing to raise America’s debt ceiling in time to avert a default on federal obligations is unthinkable. Jacob Lew is President Barack Obama’s top budget official. "All the leaders of Congress and the president have acknowledged that we must raise the debt limit, and the question is how," he said.
Lew spoke on ABC’s This Week television program.
The Senate’s number-two Republican, Jon Kyl, had a similar message. “The country will not default. Whether or not there are savings achieved in the process remains open to question," he said.
Weeks of negotiations have failed to yield a so-called “grand bargain” to trim U.S. budget deficits by $4 trillion over 10 years. The impasse has prompted several fallback plans to raise the debt ceiling if the $4 trillion target is not met.
Senate leaders are negotiating a plan that would allow President Obama to extend the federal borrowing limit even if majority votes in Congress do not materialize authorizing such a move. In the Republican-controlled House of Representatives, a vote is expected later this week that would tie a debt ceiling increase to a more-modest deficit reduction target, as well as a constitutional amendment requiring a balanced budget.
Neither plan of last resort is seen as solving America’s fiscal woes. Appearing on CBS’ Face The Nation program, Republican Senator Tom Coburn of Oklahoma criticized any attempt to shield Congress from painful votes to raise the borrowing limit. “It takes the pressure off all the politicians. It allows us to pass a debt limit [increase] without making the hard choices that this country has to make," he said.
Another Republican, Senator Marco Rubio of Florida, blasted any scaling back of deficit reduction goals. “The real problem here is not the debt limit. The real problem here is the debt. If all we do is raise the debt limit, and it is not accompanied by a credible solution to America’s debt problem, we are in big trouble," he said.
August 2 is the deadline for raising the federal government’s borrowing limit. Beyond that date, treasury officials say the U.S. government risks default.
Some Republican lawmakers have questioned this assertion, saying the United States could service the national debt and fulfill core obligations using tax revenue alone. Democrats and the White House dispute the claim, saying the government would have to choose between interest payments on the debt, funding programs that provide income and health care for retirees, and funding the U.S. military.
Office of Management and Budget Director Jacob Lew says there is still time strike a deal and avert financial ruin. But he adds that time is running out. “It is kind of unfortunate that things always have to get to the last minute. Sometimes there are no consequences. Right now, we are in a place where the world is watching, and we should get our business done," he said.
Credit ratings agencies have warned of a possible downgrading of U.S. debt, which would make U.S. Treasury bonds less attractive to investors and creditor nations and require higher interest rates to attract purchasers. Economists warn that higher interest rates would cripple America’s shaky economic recovery.
On one point top Democrats and Republicans agree: failing to raise America’s debt ceiling in time to avert a default on federal obligations is unthinkable. Jacob Lew is President Barack Obama’s top budget official. "All the leaders of Congress and the president have acknowledged that we must raise the debt limit, and the question is how," he said.
Lew spoke on ABC’s This Week television program.
The Senate’s number-two Republican, Jon Kyl, had a similar message. “The country will not default. Whether or not there are savings achieved in the process remains open to question," he said.
Weeks of negotiations have failed to yield a so-called “grand bargain” to trim U.S. budget deficits by $4 trillion over 10 years. The impasse has prompted several fallback plans to raise the debt ceiling if the $4 trillion target is not met.
Senate leaders are negotiating a plan that would allow President Obama to extend the federal borrowing limit even if majority votes in Congress do not materialize authorizing such a move. In the Republican-controlled House of Representatives, a vote is expected later this week that would tie a debt ceiling increase to a more-modest deficit reduction target, as well as a constitutional amendment requiring a balanced budget.
Neither plan of last resort is seen as solving America’s fiscal woes. Appearing on CBS’ Face The Nation program, Republican Senator Tom Coburn of Oklahoma criticized any attempt to shield Congress from painful votes to raise the borrowing limit. “It takes the pressure off all the politicians. It allows us to pass a debt limit [increase] without making the hard choices that this country has to make," he said.
Another Republican, Senator Marco Rubio of Florida, blasted any scaling back of deficit reduction goals. “The real problem here is not the debt limit. The real problem here is the debt. If all we do is raise the debt limit, and it is not accompanied by a credible solution to America’s debt problem, we are in big trouble," he said.
August 2 is the deadline for raising the federal government’s borrowing limit. Beyond that date, treasury officials say the U.S. government risks default.
Some Republican lawmakers have questioned this assertion, saying the United States could service the national debt and fulfill core obligations using tax revenue alone. Democrats and the White House dispute the claim, saying the government would have to choose between interest payments on the debt, funding programs that provide income and health care for retirees, and funding the U.S. military.
Office of Management and Budget Director Jacob Lew says there is still time strike a deal and avert financial ruin. But he adds that time is running out. “It is kind of unfortunate that things always have to get to the last minute. Sometimes there are no consequences. Right now, we are in a place where the world is watching, and we should get our business done," he said.
Credit ratings agencies have warned of a possible downgrading of U.S. debt, which would make U.S. Treasury bonds less attractive to investors and creditor nations and require higher interest rates to attract purchasers. Economists warn that higher interest rates would cripple America’s shaky economic recovery.
IMF Urges Swift Action on US Debt Dispute
President Barack Obama haggle over plans to cut Washington's massive debt, the International Monetary Fund says the United States must take urgent and effective action on the issue.
Monday, the newest IMF report on the U.S. economy said it is critical to the U.S. and other economies for Washington to promptly raise the legal limit on debt, while gradually cutting spending.
Leaders of the U.S. Senate and House of Representatives are working on competing plans to raise the federal debt limit and trim budget deficits. Congress and the White House failed to reach a bipartisan agreement Sunday, prompting declines on many stock markets Monday. Gold prices also hit a record high.
The leader of the majority party in the House, John Boehner, called on his fellow Republicans to support a short-term extension of the debt ceiling accompanied by a package of spending cuts. Boehner earlier said he was not sure a bipartisan deal could be reached.
Senate Majority Leader Harry Reid, a Democrat, wants a longer-term deal on the debt ceiling, while also cutting trillions of dollars in spending. President Barack Obama has said he wants an ambitious debt-reduction package.
August 2 is the deadline for raising the debt ceiling and allowing the federal government to continue to borrow money. The Obama administration and congressional leaders had hoped to announce a framework for an agreement before Asian financial markets opened Monday.
Monday, the newest IMF report on the U.S. economy said it is critical to the U.S. and other economies for Washington to promptly raise the legal limit on debt, while gradually cutting spending.
Leaders of the U.S. Senate and House of Representatives are working on competing plans to raise the federal debt limit and trim budget deficits. Congress and the White House failed to reach a bipartisan agreement Sunday, prompting declines on many stock markets Monday. Gold prices also hit a record high.
The leader of the majority party in the House, John Boehner, called on his fellow Republicans to support a short-term extension of the debt ceiling accompanied by a package of spending cuts. Boehner earlier said he was not sure a bipartisan deal could be reached.
Senate Majority Leader Harry Reid, a Democrat, wants a longer-term deal on the debt ceiling, while also cutting trillions of dollars in spending. President Barack Obama has said he wants an ambitious debt-reduction package.
August 2 is the deadline for raising the debt ceiling and allowing the federal government to continue to borrow money. The Obama administration and congressional leaders had hoped to announce a framework for an agreement before Asian financial markets opened Monday.
IMF Urges Swift Action on US Debt Dispute
President Barack Obama haggle over plans to cut Washington's massive debt, the International Monetary Fund says the United States must take urgent and effective action on the issue.
Monday, the newest IMF report on the U.S. economy said it is critical to the U.S. and other economies for Washington to promptly raise the legal limit on debt, while gradually cutting spending.
Leaders of the U.S. Senate and House of Representatives are working on competing plans to raise the federal debt limit and trim budget deficits. Congress and the White House failed to reach a bipartisan agreement Sunday, prompting declines on many stock markets Monday. Gold prices also hit a record high.
The leader of the majority party in the House, John Boehner, called on his fellow Republicans to support a short-term extension of the debt ceiling accompanied by a package of spending cuts. Boehner earlier said he was not sure a bipartisan deal could be reached.
Senate Majority Leader Harry Reid, a Democrat, wants a longer-term deal on the debt ceiling, while also cutting trillions of dollars in spending. President Barack Obama has said he wants an ambitious debt-reduction package.
August 2 is the deadline for raising the debt ceiling and allowing the federal government to continue to borrow money. The Obama administration and congressional leaders had hoped to announce a framework for an agreement before Asian financial markets opened Monday.
Monday, the newest IMF report on the U.S. economy said it is critical to the U.S. and other economies for Washington to promptly raise the legal limit on debt, while gradually cutting spending.
Leaders of the U.S. Senate and House of Representatives are working on competing plans to raise the federal debt limit and trim budget deficits. Congress and the White House failed to reach a bipartisan agreement Sunday, prompting declines on many stock markets Monday. Gold prices also hit a record high.
The leader of the majority party in the House, John Boehner, called on his fellow Republicans to support a short-term extension of the debt ceiling accompanied by a package of spending cuts. Boehner earlier said he was not sure a bipartisan deal could be reached.
Senate Majority Leader Harry Reid, a Democrat, wants a longer-term deal on the debt ceiling, while also cutting trillions of dollars in spending. President Barack Obama has said he wants an ambitious debt-reduction package.
August 2 is the deadline for raising the debt ceiling and allowing the federal government to continue to borrow money. The Obama administration and congressional leaders had hoped to announce a framework for an agreement before Asian financial markets opened Monday.
Friday, 22 July 2011
Republican House Speaker John Boehner quits debt talks
Republican House Speaker John Boehner has walked away from crunch debt ceiling talks at the White House with US President Barack Obama.
Mr Obama said Mr Boehner had rejected an "extraordinarily fair deal" that would have included $650bn (£400bn) of cuts to entitlement programmes.
Mr Obama said he had been willing to take "a lot of heat" from his party.
Explaining the walkout, Mr Boehner told his Republican colleagues: "In the end, we couldn't connect."
"I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward," Mr Boehner said in a letter to the Republican rank and file.
The president called for new talks with congressional leaders on Saturday at 1100 (1500 GMT).
'Call not returned'
The talks were aimed at avoiding what analysts say would be a financially catastrophic US debt default on 2 August.
"It is hard to understand why Speaker Boehner would walk away from this kind of deal," President Obama said at a news conference on Friday evening.
"There are a lot of Republicans who are puzzled as to why it couldn't get done," he added.
Senior Republican aides said President Obama and congressional Republicans had been close to reaching a deal last week, but that the White House had changed its demand to call for higher taxes.
White House correspondents said Mr Obama looked visibly angry as he told reporters that until "sometime early today when I couldn't get a phone call returned, my expectation was that Boehner was going to go to his caucus" to help finalise a deal.
Despite the breakdown in talks, Mr Obama said on Friday he was confident the $14.3tn (£8.7tn) limit on US borrowing would be raised by the approaching deadline.
But the president also countenanced for the first time the possibility of the US not meeting its financial obligations.
"If we default, then we're going to have to make adjustments," he said.
Mr Obama said he was "fed up" with political posturing and was willing to "sign an extension of the debt ceiling which takes us through 2013".
'Taxes destroy jobs'
In his letter to congressional colleagues, Mr Boehner said the president was "emphatic that taxes have to be raised".
"As a former small businessman, I know tax increases destroy jobs," he added.
Republicans have been unwilling to consider raising new tax revenues to counter the growing budget deficits.
The Democrats have been opposed to cutting popular healthcare and welfare programmes for pensioners and the poor.
Earlier on Friday, the Democratic-led US Senate rejected a "cut, cap and balance" bill passed by the Republican-led House, which would have severely cut public spending and forced the government to balance its budget.
Mr Obama said Mr Boehner had rejected an "extraordinarily fair deal" that would have included $650bn (£400bn) of cuts to entitlement programmes.
Mr Obama said he had been willing to take "a lot of heat" from his party.
Explaining the walkout, Mr Boehner told his Republican colleagues: "In the end, we couldn't connect."
"I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward," Mr Boehner said in a letter to the Republican rank and file.
The president called for new talks with congressional leaders on Saturday at 1100 (1500 GMT).
'Call not returned'
The talks were aimed at avoiding what analysts say would be a financially catastrophic US debt default on 2 August.
"It is hard to understand why Speaker Boehner would walk away from this kind of deal," President Obama said at a news conference on Friday evening.
"There are a lot of Republicans who are puzzled as to why it couldn't get done," he added.
Senior Republican aides said President Obama and congressional Republicans had been close to reaching a deal last week, but that the White House had changed its demand to call for higher taxes.
White House correspondents said Mr Obama looked visibly angry as he told reporters that until "sometime early today when I couldn't get a phone call returned, my expectation was that Boehner was going to go to his caucus" to help finalise a deal.
Despite the breakdown in talks, Mr Obama said on Friday he was confident the $14.3tn (£8.7tn) limit on US borrowing would be raised by the approaching deadline.
But the president also countenanced for the first time the possibility of the US not meeting its financial obligations.
"If we default, then we're going to have to make adjustments," he said.
Mr Obama said he was "fed up" with political posturing and was willing to "sign an extension of the debt ceiling which takes us through 2013".
'Taxes destroy jobs'
In his letter to congressional colleagues, Mr Boehner said the president was "emphatic that taxes have to be raised".
"As a former small businessman, I know tax increases destroy jobs," he added.
Republicans have been unwilling to consider raising new tax revenues to counter the growing budget deficits.
The Democrats have been opposed to cutting popular healthcare and welfare programmes for pensioners and the poor.
Earlier on Friday, the Democratic-led US Senate rejected a "cut, cap and balance" bill passed by the Republican-led House, which would have severely cut public spending and forced the government to balance its budget.
Republican House Speaker John Boehner quits debt talks
Republican House Speaker John Boehner has walked away from crunch debt ceiling talks at the White House with US President Barack Obama.
Mr Obama said Mr Boehner had rejected an "extraordinarily fair deal" that would have included $650bn (£400bn) of cuts to entitlement programmes.
Mr Obama said he had been willing to take "a lot of heat" from his party.
Explaining the walkout, Mr Boehner told his Republican colleagues: "In the end, we couldn't connect."
"I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward," Mr Boehner said in a letter to the Republican rank and file.
The president called for new talks with congressional leaders on Saturday at 1100 (1500 GMT).
'Call not returned'
The talks were aimed at avoiding what analysts say would be a financially catastrophic US debt default on 2 August.
"It is hard to understand why Speaker Boehner would walk away from this kind of deal," President Obama said at a news conference on Friday evening.
"There are a lot of Republicans who are puzzled as to why it couldn't get done," he added.
Senior Republican aides said President Obama and congressional Republicans had been close to reaching a deal last week, but that the White House had changed its demand to call for higher taxes.
White House correspondents said Mr Obama looked visibly angry as he told reporters that until "sometime early today when I couldn't get a phone call returned, my expectation was that Boehner was going to go to his caucus" to help finalise a deal.
Despite the breakdown in talks, Mr Obama said on Friday he was confident the $14.3tn (£8.7tn) limit on US borrowing would be raised by the approaching deadline.
But the president also countenanced for the first time the possibility of the US not meeting its financial obligations.
"If we default, then we're going to have to make adjustments," he said.
Mr Obama said he was "fed up" with political posturing and was willing to "sign an extension of the debt ceiling which takes us through 2013".
'Taxes destroy jobs'
In his letter to congressional colleagues, Mr Boehner said the president was "emphatic that taxes have to be raised".
"As a former small businessman, I know tax increases destroy jobs," he added.
Republicans have been unwilling to consider raising new tax revenues to counter the growing budget deficits.
The Democrats have been opposed to cutting popular healthcare and welfare programmes for pensioners and the poor.
Earlier on Friday, the Democratic-led US Senate rejected a "cut, cap and balance" bill passed by the Republican-led House, which would have severely cut public spending and forced the government to balance its budget.
Mr Obama said Mr Boehner had rejected an "extraordinarily fair deal" that would have included $650bn (£400bn) of cuts to entitlement programmes.
Mr Obama said he had been willing to take "a lot of heat" from his party.
Explaining the walkout, Mr Boehner told his Republican colleagues: "In the end, we couldn't connect."
"I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward," Mr Boehner said in a letter to the Republican rank and file.
The president called for new talks with congressional leaders on Saturday at 1100 (1500 GMT).
'Call not returned'
The talks were aimed at avoiding what analysts say would be a financially catastrophic US debt default on 2 August.
"It is hard to understand why Speaker Boehner would walk away from this kind of deal," President Obama said at a news conference on Friday evening.
"There are a lot of Republicans who are puzzled as to why it couldn't get done," he added.
Senior Republican aides said President Obama and congressional Republicans had been close to reaching a deal last week, but that the White House had changed its demand to call for higher taxes.
White House correspondents said Mr Obama looked visibly angry as he told reporters that until "sometime early today when I couldn't get a phone call returned, my expectation was that Boehner was going to go to his caucus" to help finalise a deal.
Despite the breakdown in talks, Mr Obama said on Friday he was confident the $14.3tn (£8.7tn) limit on US borrowing would be raised by the approaching deadline.
But the president also countenanced for the first time the possibility of the US not meeting its financial obligations.
"If we default, then we're going to have to make adjustments," he said.
Mr Obama said he was "fed up" with political posturing and was willing to "sign an extension of the debt ceiling which takes us through 2013".
'Taxes destroy jobs'
In his letter to congressional colleagues, Mr Boehner said the president was "emphatic that taxes have to be raised".
"As a former small businessman, I know tax increases destroy jobs," he added.
Republicans have been unwilling to consider raising new tax revenues to counter the growing budget deficits.
The Democrats have been opposed to cutting popular healthcare and welfare programmes for pensioners and the poor.
Earlier on Friday, the Democratic-led US Senate rejected a "cut, cap and balance" bill passed by the Republican-led House, which would have severely cut public spending and forced the government to balance its budget.
Subscribe to:
Comments (Atom)