US Treasury Secretary Jack Lew warned Sunday that Congress was "playing with fire" as Republicans raised the threat of a US default if President Barack Obama refuses to negotiate on spending.
Speaker John Boehner said the Republican-controlled House would not raise the US debt ceiling without concessions from the White House, staking his position as the government shutdown dragged into day six.
"We're not going to pass a clean debt limit increase," Boehner said in an interview on ABC's "This Week."
"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," he said.
Lew said the United States will run out of its ability to borrow money on October 17, and with only $30 billion cash in hand to meet obligations that can run to $60 billion a day, it will quickly face default.
"I'm telling you that on the 17th, we run out of our ability to borrow, and Congress is playing with fire," he said on CNN's "State of the Union".
"If they don't extend the debt limit, we have a very, very short window of time before those scenarios start to be played out."
The $16.7 trillion US statutory debt ceiling has come increasingly into focus with the two sides deadlocked in a legislative fight originally centered on Republican efforts to defund the Affordable Care Act, Obama's signature health care law.
The US government was forced to shut down on Tuesday for the first time in 17 years after Congress failed to pass a stopgap spending measure to fund government operations.
The House refused to pass a spending bill that did not include the measure to defund Obamacare, and the Democratic-controlled Senate would vote only on a bill stripped of the measure.
In a sign the impasse was expected to continue, the Pentagon on Saturday announced it will recall most of its 400,000 furloughed civilian employees.
Defense contractor Sikorsky, maker of the UH-60 Black Hawk helicopter, said the Pentagon action means it can defer plans to furlough without pay 2,000 of its employees starting Monday.
The absence of Pentagon overseers had been expected to disrupt operations at US defense contractors like Sikorsky.
The House, meanwhile, unanimously passed a bill to retroactively pay the hundreds of thousands of furloughed government workers, in a bid to ease some of the pressure from an unhappy public.
Obama has insisted he will not negotiate with Republicans until they pass a temporary spending bill reopening the government and agree to raise the debt ceiling.
"For as reckless as a government shutdown is, an economic shutdown that comes with default would be dramatically worse," Obama said in a radio message Saturday.
Obama said there were enough Republican and Democratic votes in the House to "end this shutdown immediately."
But Boehner blamed the crisis on Obama's refusal to negotiate, and insisted he would not budge without what he described as a "conversation" on spending.
"My goal here is not to have the United States default on their debt. My goal here is to have a serious conversation about those things that are driving the deficit and driving the debt up.
"And the president's refusal to sit down and have a conversation about this is putting our nation at risk of default.
"That's the path we're on," he said, adding that he had hoped the president had cancelled a trip to Asia to initiate a dialogue.
"I decided to stay here in Washington this weekend. He knows what my phone number is. All he has to do is call," he said.
US allies were warily watching the unfolding political crisis in Washington.
At an Asia-Pacific summit on the Indonesian island of Bali, which Obama was supposed to have attended, Singapore Prime Minister Lee Hsien Loong said the US president's absence was "a very big disappointment to us."
"Obviously we prefer a US government that is working to one that is not. And we prefer a US president who is able to travel and fulfill his international duties to one who is preoccupied with national domestic preoccupations," he said.
US Secretary of State John Kerry, who Obama sent to Bali in his stead, warned of the damage to America's diplomatic standing if the shutdown did not end soon.
"The shutdown is not good for business. It's not good for the economy," US Commerce Secretary Penny Pritzker told reporters at the Asia-Pacific Economic Cooperation (APEC) forum.
AFP
Sun Oct 06 2013
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.