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Sunday, October 23, 2016

Washington (AFP) – U.S. senators scrambled together an eleventh hour compromise Wednesday that they hoped might protect Washington’s battered financial standing by heading off fears of a default.

The Senate deal must still pass a divided and unpredictable House of Representatives, but lawmakers were hopeful it will allow the U.S. government to reopen and keep borrowing to meet its obligations.

“I hope that we’re nearing the end of this ordeal, this impasse which never should have happened in the first place,” said Senator Susan Collins, a Republican who has led efforts to broker a compromise.

At midnight (0400 GMT), the U.S. economy was to sail into uncharted waters where the Treasury would no longer be able to borrow more to meet its obligations and avert a devastating debt default.

The only way to avert this peril, which could send global markets into turmoil and threaten another recession, would be for Congress to agree to raise the U.S. government’s $16.7 trillion debt ceiling.

Senate leaders met to hammer out a compromise, after a previous effort in the Republican-led House collapsed in chaos on Tuesday.

“The America people are tired of where we are,” Senator Kelly Ayotte, a Republican, said. “They’re tired of the brinksmanship, and so they want us to get this resolved now for them — today, hopefully.”

Ayotte and other senators said that they understood that senate leaders had agreed the terms of a deal that could pass, and that it would be sent first to the House.

If it is approved there, it would return to the senate, where lawmakers hope to rapidly pass it into law.

Conservatives from the Tea Party movement in the House have thus far thwarted votes on the debt ceiling and on passing a budget, demanding concessions from President Barack Obama.

Obama’s Democrats have refused to allow Republicans to hold the budget and debt ceiling votes to “ransom” with attempts to defund or delay the president’s landmark Obamacare health insurance reform.

The stand-off has forced the U.S. federal government into a partial shutdown, and if it continues past midnight it would put the United States in a position where it might not be able to pay its debts.

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Copyright 2013 The National Memo
  • idamag

    If the subversives decide they hate the US Government so much they have to shut it down and then use the debt ceiling as a hostage, this is what will happen: All of the furloughed workers will not be spending nor paying taxes. The merchants rely heavily on the Christmas season to cover January, February and March. If you don’t have money for Christmas, you won’t be buying like years past. I don’t care who you are, you are going to be affected by the shutdown. The t-potty says that the government can only spend from cash on hand. Right now, that is about $30, billion in cash. Around October 22, Social Security checks are mailed out. The government pays them by paying back a loan from Social Security (loaned at 4% interest). If the government defaults on its obligations, Social Security is one of them. The checks won’t go out. Neither will Veterans pension checks. Medicare obligations will not get paid. Another result of not paying debt is a raise in interest rates from the lenders. I knew a person who wanted to buy a car. The banks and credit unions would not lend them money because of a credit problem. That person wanted that car pretty bad and went so a money lending institution. They ended up paying 29% interest when GMC financing was financing for 3%. The government will be like that person.

  • TZToronto

    The Partiers won’t get it until they start noticing that the things they take for granted (their SS checks, for example) just aren’t there. Of course, then they’ll blame President Obama.

  • As usual they’ll appear in the middle of the night to tell US ow They save US from our certain downfall.
    They’ll be taking credit for doing their jobs.
    They need to be fired…in a ceremony.
    Then crucify them.

  • Liberty: Coercion’s Absence

    The collectivist notion that a few quacks & academics are somehow magically ready to plan & direct our future progress is complete nonsense