Debt Ceiling: Senate Democrats Push Toward Vote

Written By Unknown on Rabu, 09 Oktober 2013 | 00.25

Senate Democrats plan to push for a vote to raise the federal debt ceiling, challenging Republicans to yet another showdown as the US closes in on a possible default.

A spokesman says Senate Majority Leader Harry Reid could unveil the measure as early as Tuesday, setting the table for a test vote later in the week.

The measure is expected to provide enough borrowing room to last beyond next year's mid-term election, meaning it likely will permit $1trn (£622bn) or more in new borrowing.

The amount will be added to the current $16.7trn (£10.39trn) debt ceiling that the US Treasury says will be hit on October 17.

The Democrats' measure, however, is not expected to include new spending cuts sought by Republicans, most likely rendering it dead on arrival in the House.

Senate Majority Leader Harry Reid and House Speaker John Boehner Mr Reid and Mr Boehner have been unable to find a compromise

The vote also could face strong opposition in the Senate if it does not contain budget cuts to make a dent in deficits.

The question is whether Republicans will try to hold up the measure with a filibuster. Such a showdown could unnerve the financial markets.

The development comes as a partial shutdown of the government enters its second week with no end in sight.

The top Republican in Congress once again asked for negotiations with the White House to ease the twin crises.

House Speaker John Boehner told reporters: "I want to have a conversation. I'm not drawing lines in the sand. It is time for us to just sit down and resolve our differences.

"There's no boundaries here. There's nothing on the table, there's nothing off the table."

An aide to the Speaker later said President Barack Obama called Mr Boehner to reiterate he would not negotiate with Republicans until they voted to end the shutdown with a "clean" spending bill.

US Shutdown Some 800,000 'non-essential' workers are on unpaid leave

House Republicans had sought to attach a delay to aspects of Mr Obama's signature healthcare law in exchange for keeping the federal government funded beyond September 30.

Meanwhile, GOP aides said the Republican-controlled House will attempt to set up a new bipartisan panel to negotiate reopening the government and avoid a default.

The prolonged political wrangling in Washington has frustrated citizens and business leaders alike.

A survey by The Washington Post and ABC News found that 70% of Americans disapprove of the way Republicans are handling budget negotiations, up from 63% last week.

Starbucks Chairman and CEO Schultz speaks during a news conference at a hotel in Bogota Howard Schultz is trying to ratchet up the pressure on Capitol Hill

Disapproval of Mr Obama's role was unchanged at 51%.

Meanwhile, the CEO of Starbucks has urged fellow business leaders to ratchet up the pressure on Washington to end the stalemate.

Howard Schultz wrote in a letter posted on the company's website that he was "utterly disappointed by the level of irresponsibility and dysfunction we are witness to with our elected political leadership."

"This weekend I heard from several business leaders who shared their concern about our relative silence and impact in urging the political leadership to act on behalf of the citizenry," he said.

"It is our responsibility to address the crisis of confidence that is needlessly being set in motion."

"I don't pretend that both parties are equally to blame for this crisis. But I do think they are equally responsible for leading us to a solution," Mr Schultz said.


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