WASHINGTON (AP) — President Barack Obama says a failure to increase the government’s borrowing authority would effectively shutter the economy.
Obama told reporters at the White House Friday that would have a ‘profound destabilizing effect’ on the U.S. and global economies.
He accused Republicans of “political grandstanding” and said what they really care about is “appeasing the tea party.”
The government faces two looming deadlines. One is a potential government shutdown Oct. 1 if Congress doesn’t approve a short-term spending bill. The other is a debt limit around Oct. 17 if Congress doesn’t increase the government’s borrowing authority.
Obama says failure to raise the debt ceiling would be far more dangerous than a government shutdown.
Obama has vowed not to negotiate on the debt ceiling.
Progress on Iran Regarding Iran and their efforts to improve relations with the U.S. and potentially expand their nuclear energy programs, President Obama signaled that initial talks have gone well. “While there will surely be important obstacles to moving forward and success is by no means guaranteed, I believe we can reach a comprehensive solution,” Obama said.