Government shutdown enters second week with no end in sight

In this photo taken Friday, Oct. 4, 2013, Marcelo del Canto, right, a budget analyst for the Substance Abuse and Mental Health Services Administration, demonstrates during a rally against the government shut down during a federal union workers demonstration with congressmen outside of the U.S. Capitol in Washington. These days, many federal workers are frustrated, anxious and growing tired of being pawns in a never-ending political struggle over government funding. Both he and his federally-employed wife been furloughed and worry about making the next mortgage payment on a house they bought in March. (AP Photo/Jose Luis Magana)

In this photo taken Friday, Oct. 4, 2013, Marcelo del Canto, right, a budget analyst for the Substance Abuse and Mental Health Services Administration, demonstrates during a rally against the government shut down during a federal union workers demonstration with congressmen outside of the U.S. Capitol in Washington. These days, many federal workers are frustrated, anxious and growing tired of being pawns in a never-ending political struggle over government funding. Both he and his federally-employed wife been furloughed and worry about making the next mortgage payment on a house they bought in March. (AP Photo/Jose Luis Magana)

WASHINGTON (AP) — The government shutdown entered its second week with no end in sight and ominous signs that the United States was closer to the first default in the nation's history as Speaker John Boehner ruled out any measure to boost borrowing authority without concessions from President Barack Obama.

Washington will be closely watching the financial markets on Monday to see if the uncompromising talk rattles Wall Street and worldwide economies just 10 days before the threat of default would be imminent.

Treasury Secretary Jack Lew warned that the budget brinkmanship was "playing with fire" and implored Congress to pass legislation to re-open the government and increase the nation's $16.7 trillion debt limit. Lew reiterated that Obama has no intention to link either bill to Republican demands for changes in the 3-year-old health care law and spending cuts.

A defiant Boehner insisted that Obama must negotiate if the president wants to end the shutdown and avert a default that could trigger a financial crisis and recession that would echo 2008 or worse. The 2008 financial crisis plunged the country into the worst recession since the Great Depression of the 1930s.

"We're not going to pass a clean debt limit increase," the Ohio Republican said in a television interview. "I told the president, there's no way we're going to pass one. The votes are not in the House to pass a clean debt limit, and the president is risking default by not having a conversation with us."

Boehner also said he lacks the votes "to pass a clean CR," or continuing resolution, a reference to the temporary spending bill without conditions that would keep the government operating.

The shutdown has pushed hundreds of thousands of workers off the job, closed national parks and museums and stopped an array of government services.

The one bright spot on Monday is a significant chunk of the furloughed federal workforce is headed back to work. Defense Secretary Chuck Hagel ordered nearly 350,000 back on the job, basing his decision on a Pentagon interpretation of a law called the Pay Our Military Act.

Those who remain at home or are working without paychecks are a step closer to getting back pay once the partial government shutdown ends. The Senate could act this week on the measure that passed the House unanimously on Saturday.

Democrats insist that Republicans could easily open the government if Boehner simply allows a vote on the emergency spending bill. Democrats argue that their 200 members in the House plus close to two dozen pragmatic Republicans would back a so-called clean bill, but the Speaker remains hamstrung by his tea party-strong GOP caucus.

"Let me issue him a friendly challenge. Put it on the floor Monday or Tuesday. I would bet there are the votes to pass it," said Sen. Chuck Schumer, D-N.Y.

In a series of Sunday television appearances, Lew warned that on Oct. 17, he exhausts the bookkeeping maneuvers he has been using to keep borrowing.

"I'm telling you that on the 17th, we run out of the ability to borrow, and Congress is playing with fire," Lew said.

Lew said that while Treasury expects to have $30 billion of cash on hand on Oct. 17, that money will be quickly exhausted in paying incoming bills given that the government's payments can run up to $60 billion on a single day.

Treasury issued a report on Thursday detailing in stark terms what could happen if the government actually defaulted on its obligations to service the national debt.

"A default would be unprecedented and has the potential to be catastrophic," the Treasury report said. "Credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spillovers could reverberate around the world."

Private economists generally agree that a default on the U.S. debt would be extremely harmful, especially if the impasse was not resolved quickly.

"If they don't pay on the debt, that would cost us for generations to come," said Mark Zandi, chief economist at Moody's Analytics. He said a debt default would be a "cataclysmic" event that would roil financial markets in the United States and around the world.

Zandi said that holders of U.S. Treasury bonds would demand higher interest rates which would cost the country hundreds of billions of dollars in higher interest payments in coming years on the national debt.

Sen. Ted Cruz, R-Texas, a force in pushing Republicans to link changes to the health care law in exchange for keeping the government running, spelled out his conditions for raising the borrowing authority.

"We should look for three things. No. 1, we should look for some significant structural plan to reduce government spending. No. 2, we should avoid new taxes. And No. 3, we should look for ways to mitigate the harms from 'Obamacare,'" Cruz said, describing the debt ceiling as an issue that is among the "best leverage the Congress has to rein in the executive."

Some Republicans, such as Rep. Steve King of Iowa, dismiss the warnings about a government default as an exaggeration, suggesting U.S. credit won't collapse and calling the talk "a lot of false demagoguery."

Asked how the standoff might end, Boehner, R-Ohio, said that he was uncertain: "If I knew, I'd tell you."

Boehner and Schumer were interviewed on ABC's "This Week," and Lew and Cruz on CNN's "State of the Union." Lew also appeared on CBS' "Face the Nation," ''Fox News Sunday" and NBC's "Meet the Press."

  • Discuss
  • Print

Related Stories

Comments » 29

August8 writes:

Great, the longer this incompetent dude sits on his fanny the better off we alll are. Hopefully it last for three '3' years.

26yearsonmarco writes:

This article is full of the same BS we heard during the so called bank bailout disaster, and the last debt ceiling increase, and we all know how that worked out.

As far as the sobs from the useless union guy, and his wife are concerned, if they had jobs considered essential, they would be at work, like the essential ones.

RayPray writes:

This is a tragedy for our nation!

The longer this shame lasts, the more likely that people who work & produce will come to delude themselves that they can thrive very nicely without an parasite army of federal buttinskis to order them how to live....

26yearsonmarco writes:

I understand from this mornings news that Habitat for Humanity is starting to build a home for two lawyers from Pakistan, while our government just evicted two elderly Americans from their home.

http://www.ktnv.com/news/local/Lake-M...

happy6 writes:

who cares how long the shutdown lasts....the sad thing is all these laggards will get back pay when its finally over...and congress ain't missed a paycheck...

August8 writes:

No exaggeration: '90'million Americans unemployed.

Konfuzius writes:

The Tea Party doctorate:
In God we trust

it simply hold: many tea-party: -Trailer are deeply rooted in Christian faith communities. God plays a central role in them. In their private life as well as in their ideas of American foreign policy. For example. They hold the United States for God's chosen country, which for the enforcement of the good anywhere in the world. According to advocate a strong military. Other state institutions, however, reject they completely, just as other interference of the State in the lives of its citizens. "Less government, more freedom", is one of their central beliefs. This also includes a clear commitment to the right of every American, to be allowed to wear weapons. It is quite in the original sense of the US constitution, in which this right has been established. The idea at that time, the tea-party. Until today they considers to be right: Each US-citizens should defend themselves against a powerful government and this even by force can plunge.
The dilemma is, this bunch of 40 peoples brings America down. And I think God will shake his head in a lack of appreciation and says: Political dummies!
But my belief is, great President Barack Obama will stop this yesterday yesterday people working for their s----- principals and never for the needs of the American people.

August8 writes:

in response to Hascle:

(This comment was removed by the site staff.)

So, still 90 million unemployed? Now, those nice part time jobs you mentioned should draw a line, correct?

26yearsonmarco writes:

This explains everything:

ITS JUST ME AN' LEROY

A guy stopped at a local gas station, and after filling his tank, he paid the bill and bought a soft drink. He stood by his car to drink his cola and watched a couple of men working along the roadside. One man would dig a hole two or three feet deep and then move on. The other man came along behind him and filled in the hole. While one was digging a new hole, the other was 25 feet behind filling in the hole.

The men worked right past the guy with the soft drink and went on down the road.

"I can't stand this," said the man tossing the can into a trash container and headed down the road toward the men. "Hold it, hold it," he said to the men. "Can you tell me what's going on here with all this digging and refilling?"

"Well, we work for the government and we're just doing our job," one of the men said.

"But one of you is digging a hole and the other fills it up. You're not accomplishing anything. Aren't you wasting the taxpayers' money?"

"You don't understand, mister," one of the men said, leaning on his shovel and wiping his brow. "Normally there's three of us: Me, Elmer and Leroy. I dig the hole, Elmer sticks in the tree, and Leroy here puts the dirt back.

You see with the government sequestering, they are not buying any more trees so Elmer's job's been cut ... so now it's just me an' Leroy.

August8 writes:

in response to 26yearsonmarco:

This explains everything:

ITS JUST ME AN' LEROY

A guy stopped at a local gas station, and after filling his tank, he paid the bill and bought a soft drink. He stood by his car to drink his cola and watched a couple of men working along the roadside. One man would dig a hole two or three feet deep and then move on. The other man came along behind him and filled in the hole. While one was digging a new hole, the other was 25 feet behind filling in the hole.

The men worked right past the guy with the soft drink and went on down the road.

"I can't stand this," said the man tossing the can into a trash container and headed down the road toward the men. "Hold it, hold it," he said to the men. "Can you tell me what's going on here with all this digging and refilling?"

"Well, we work for the government and we're just doing our job," one of the men said.

"But one of you is digging a hole and the other fills it up. You're not accomplishing anything. Aren't you wasting the taxpayers' money?"

"You don't understand, mister," one of the men said, leaning on his shovel and wiping his brow. "Normally there's three of us: Me, Elmer and Leroy. I dig the hole, Elmer sticks in the tree, and Leroy here puts the dirt back.

You see with the government sequestering, they are not buying any more trees so Elmer's job's been cut ... so now it's just me an' Leroy.

Hee-Hee !

MIOCENE (Inactive) writes:

The trouble is that the Far Right Conservative Constitution Party politicians have taken over the GOP; and the Far Left (Liberal Party) politicians have taken over the Democratic P.

The Moderates, who usually compromise; have been pushed aside leaving the two extremes which NEVER compromise.

ie. Like a Christian and a Jew trying to compromise on the divinity of Jesus Christ.
With these two extremes; there IS no compromise.

There will be no workable government until the two extremes are voted out and sent back to their home political parties where they belong.

Voters will then have the choice to vote Moderate Dem or Moderate GOP; along with the two extremes.

Then if the Conservatives win; so be it.

Right now BOTH Libs and Tea Party folks are gumming up the process of compromise.

MIOCENE

August8 writes:

in response to MIOCENE:

The trouble is that the Far Right Conservative Constitution Party politicians have taken over the GOP; and the Far Left (Liberal Party) politicians have taken over the Democratic P.

The Moderates, who usually compromise; have been pushed aside leaving the two extremes which NEVER compromise.

ie. Like a Christian and a Jew trying to compromise on the divinity of Jesus Christ.
With these two extremes; there IS no compromise.

There will be no workable government until the two extremes are voted out and sent back to their home political parties where they belong.

Voters will then have the choice to vote Moderate Dem or Moderate GOP; along with the two extremes.

Then if the Conservatives win; so be it.

Right now BOTH Libs and Tea Party folks are gumming up the process of compromise.

MIOCENE

Yea , well thank the lord the Tea Party has stood in the way of more bs or would would be doing the back stroke in it.

Konfuzius writes:

in response to MIOCENE:

The trouble is that the Far Right Conservative Constitution Party politicians have taken over the GOP; and the Far Left (Liberal Party) politicians have taken over the Democratic P.

The Moderates, who usually compromise; have been pushed aside leaving the two extremes which NEVER compromise.

ie. Like a Christian and a Jew trying to compromise on the divinity of Jesus Christ.
With these two extremes; there IS no compromise.

There will be no workable government until the two extremes are voted out and sent back to their home political parties where they belong.

Voters will then have the choice to vote Moderate Dem or Moderate GOP; along with the two extremes.

Then if the Conservatives win; so be it.

Right now BOTH Libs and Tea Party folks are gumming up the process of compromise.

MIOCENE

Close to right. But you have in east and west America the intelligence and in the mid the bullies.
That is now the American problem. On top the bible belt people. To bad. The American demographic kills America.

26yearsonmarco writes:

I'm sure we are all familiar with the term Fecal Waste, and here is a good example of Fiscal Waste:

http://www.thefiscaltimes.com/Article...

August8 writes:

Obama Approval in latest poll, 37%, sounds very high to me?

Konfuzius writes:

in response to August8:

Obama Approval in latest poll, 37%, sounds very high to me?

Who cares?

August8 writes:

in response to Konfuzius:

Who cares?

I guess the American Public, at least the sane ones?
I believe it should be about or close to 8% but hat's likely comming soon.

Konfuzius writes:

The American public just re-elected great President Barack Obama. He is doing a fantastic job.

MIOCENE (Inactive) writes:

in response to August8:

Obama Approval in latest poll, 37%, sounds very high to me?

Thanks for responding Konfuzius.

Actually, we only have three percent unemployment because we always have about five percent base umemployment anyway.

For the most part; if it wasn't for Limbaugh, Hannity and Dobbs telling us how "terrible" the economy is; one would never know it by looking "out the window".

The trucks are still rolling, the supermarket shelves are constantly being restocked, the mall parking lots are full, the snow birds still come, tourist areas are booked well in advance, there is expensive (yet plentiful) gas at the pumps, and the restaurants are full.

I don't see that things are so bad under Obama.

One of the worst problems we have is runaway population growth in the poor communities driving up Medicaid and the National Debt.
-and the only thing we can do about that is to make sure that birth control is available everywhere; and make inroads into the superstitious Medieval rubbish which stands in the way of family planning.

Who stands in the way of birth control and family planning?
The Tea Party and the Christian Church.

MIOCENE

August8 writes:

in response to MIOCENE:

Thanks for responding Konfuzius.

Actually, we only have three percent unemployment because we always have about five percent base umemployment anyway.

For the most part; if it wasn't for Limbaugh, Hannity and Dobbs telling us how "terrible" the economy is; one would never know it by looking "out the window".

The trucks are still rolling, the supermarket shelves are constantly being restocked, the mall parking lots are full, the snow birds still come, tourist areas are booked well in advance, there is expensive (yet plentiful) gas at the pumps, and the restaurants are full.

I don't see that things are so bad under Obama.

One of the worst problems we have is runaway population growth in the poor communities driving up Medicaid and the National Debt.
-and the only thing we can do about that is to make sure that birth control is available everywhere; and make inroads into the superstitious Medieval rubbish which stands in the way of family planning.

Who stands in the way of birth control and family planning?
The Tea Party and the Christian Church.

MIOCENE

Hello-Hello, no one home ???

26yearsonmarco writes:

"Who stands in the way of birth control and family planning?"

"The Tea Party and the Christian Church."

MIOCENE

You forgot to mention the Muslims:

The Qur'an

"The Qur'an does not refer to contraception explicitly, but Muslims opposed to birth control often quote the Qur'an as saying "You should not kill your children for fear of want" (17:31, 6:151) and interpret this as including a ban on contraception as well as infanticide. Supporters of birth control argue that this interpretation is wrong."

MIOCENE (Inactive) writes:

in response to August8:

Yea , well thank the lord the Tea Party has stood in the way of more bs or would would be doing the back stroke in it.

You see: The Tea Party IS a "backstroke"; and this is why:

The Tea Party types walk on the TWO LEGS of Social and Fiscal Conservatism.

The T.P. types support a Catholic Clergy which encourages illegal immigration leading to more poor, dependent people; and eventually to Socialism to care for them.

T. P. types and the Evangelists speak against Planned Parenthood, then complain about Big Government Social Programs to care for the large families of poor.

T.P. types fight to overturn Roe v Wade; the consequences of which would lead to Socialism and more Big Government programs to care for millions of dependent babies and their penniless mothers.

T.P. types condemn birth control, then complain about the Social programs needed to care for the additional unplanned millions.

So you see: The social leg of the Tea Party CANCELS OUT the fiscal leg; crippling the long-term positive fiscal outlook of the movement.

This is why Bachman, Palin and the rest of them; despite their flag-waving and god-fearing rhetoric which always makes a good impression; are oblivious to reality; and dangerous to America.

MIOCENE

MIOCENE (Inactive) writes:

in response to 26yearsonmarco:

"Who stands in the way of birth control and family planning?"

"The Tea Party and the Christian Church."

MIOCENE

You forgot to mention the Muslims:

The Qur'an

"The Qur'an does not refer to contraception explicitly, but Muslims opposed to birth control often quote the Qur'an as saying "You should not kill your children for fear of want" (17:31, 6:151) and interpret this as including a ban on contraception as well as infanticide. Supporters of birth control argue that this interpretation is wrong."

No need to mention Muslims; because they do not control the Republican Party; at least not yet.

You see: That is the real danger of allowing religious scripture (and god) to take center stage in government.
If you start out by giving Christianity center stage; then the Muslims will 'play by the same rules' and push THEIR religion into the government arena; turning our government into a religious battle ground.

Since the true religion is always a function of the most prolific; it will be a race to see which religion can produce the most babies and push the others out.

No good can come of this.

So it is therefore better to keep god and religion away from the front door of government; or you are liable to wake up some morning and find out:

"That the wrong dogs have come home".

MIOCENE

Captian_Cataracts writes:

I think it would be prudent to buy a beach front tower & convert it into a homeless shelter on Marco island.

What better way to hide our problems then isolate them on Marco, no one goes there anyway except a lot of old geezers with nothing else to do while they wait to die than complain about everything & everyone.

August8 writes:

in response to Captian_Cataracts:

I think it would be prudent to buy a beach front tower & convert it into a homeless shelter on Marco island.

What better way to hide our problems then isolate them on Marco, no one goes there anyway except a lot of old geezers with nothing else to do while they wait to die than complain about everything & everyone.

You got it fella, just read a couple of the above posts.?
Hey, how about if the put a gate at the foot of the Jolly Bridge and just turn the whole Island into a indepentant or secure living envirornment for all these old residents?
Then they can all cry to the management.

Konfuzius writes:

"Who stands in the way of birth control and family planning?
The Tea Party and the Christian Church."

That's wrong. Just the Catholics of Marco Island.. Tea Party is indifferent.

Konfuzius writes:

Let me say it in this way:
Who really cares about a nude beach on Marco Island?
Not me!
Entire Europe is naked. Something wrong with that?
So how useless is the tea arty? Or better - how valuable?

26yearsonmarco writes:

MIOCENE;

Most Christians spell God with a capital G.

You sound like you have converted.

August8 writes:

in response to Konfuzius:

Let me say it in this way:
Who really cares about a nude beach on Marco Island?
Not me!
Entire Europe is naked. Something wrong with that?
So how useless is the tea arty? Or better - how valuable?

I can see why you would not care about a nude beach, dogs chase cars.

Share your thoughts

Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.

Comments can be shared on Facebook and Yahoo!. Add both options by connecting your profiles.

Features