The US limped into day three of a government shutdown yesterday with US President Barack Obama warning markets that the crisis could trigger a catastrophic US debt default.
Obama met with top Republican leaders for an hour on Wednesday, but the talks failed to end the crisis that has sent hundreds of thousands of government workers home, and shut museum sites and national parks throughout the country.
Conservative Republicans want to dismantle or amend Obama’s healthcare law as a condition for approving stop-gap funding for the new fiscal year, which began on Tuesday. The president is refusing to tinker with the legislation, his signature healthcare reform bill widely known as “Obamacare.”
Photo: Reuters
Both sides accused the other of refusing to negotiate and there is no end in sight to the latest crisis to hit bitterly divided Washington.
Heightening tensions, Obama sent Wall Street a blunt warning that the political crisis that has paralyzed the US federal government could yet trigger a catastrophic debt default, but when he met with Republican House of Representatives Speaker John Boehner and Senate minority leader Mitch McConnell, there was no sign of a breakthrough. Hundreds of thousands of federal workers are staying home, museums and national parks are shut, much scientific research is on hold and the shutdown is now threatening sluggish economic growth.
“The president reiterated one more time that he will not negotiate,” Boehner said, emerging empty-handed into a warm Washington night to address reporters after the West Wing talks.
On that point at least, the two sides agreed.
Obama said in an interview with CNBC that he would not negotiate on budget matters until Republicans had passed a bill to reopen the government and raise the US$16.7 trillion US debt ceiling.
The cap must be raised within two weeks or Washington could default on its government debt and payments for the first time, a result that could hurt the credit rating of the world’s largest economy.
Democratic Senate majority leader Harry Reid emerged from the talks complaining about Boehner’s attitude and vowing not to allow the healthcare law to be overturned.
In his interview, Obama challenged his opponents to directly address the financial community.
Obama was asked whether Washington was simply gripped by just the latest in a series of political and fiscal crises which reliably get solved at the last minute.
In unusually frank comments on issues that could sway markets, Obama warned that investors should be worried.
“This time’s different. I think they should be concerned,” Obama said. “When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble.”
Obama said he would not negotiate until lawmakers pass a temporary financing bill and raise the debt ceiling, but after that he would be “prepared to have a reasonable, civil negotiation around a whole slew of issues.”
The US president warned it would set a terrible precedent to allow lawmakers of any party to hold a White House to ransom over the government’s borrowing limit.
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a