- Obama Says He Won't Negotiate With Republicans on Debt Ceiling
- September 25, 2013
- Law Firm: McDonald Hopkins LLC - Cleveland Office
While most of the attention in Washington is on the fight over a continuing resolution to avoid a government shutdown, another fight—with arguably even higher stakes—is on the horizon. In mid-October the federal government will bump up against the debt ceiling. To avoid the U.S. defaulting on its debts, the House, Senate and the president will have to agree on a debt ceiling increase—and that does not look promising, at least not at this point.
Republicans in both chambers are insisting on entitlement reforms as part of any debt ceiling increase package, while the White House is flatly refusing to play ball. This week, President Obama again warned Republicans he will not negotiate with them over a debt ceiling increase and asked that a clean debt ceiling increase bill be sent to his desk.
In a speech on Monday, President Obama claimed the last time Republicans considered not raising the debt ceiling that the mere talk of a debt default sent the stock market into a months-long tailspin and slowed U.S. economic growth. Obama was emphatic, saying, "I will not negotiate over whether or not America keeps its word and meets its obligations. I will not negotiate over the full faith and credit of the United States."