President Obama reiterated in a press conference Monday that he will not negotiate over the debt ceiling. But Republicans say they want dollar-for-dollar spending cuts, and some are willing to threaten default.
President Obama has not budged from his stark line in the sand: When it comes to the debt ceiling, he will not negotiate. Period.
In a press conference Monday, he reiterated this position, stating: "Republicans in Congress have two choices here. They can act responsibly and pay America's bills. Or they can act irresponsibly and put America through another economic crisis. But they will not collect a ransom in exchange for not crashing the American economy."
Mr. Obama made clear – as he did during the 2011 debt-ceiling crisis – that raising the debt ceiling "does not authorize more spending; it simply allows the country to pay for spending that Congress has already committed to." The difference this time around, however, is that while Obama says he's ready to have a "vigorous debate" on debt reduction, he also says that debate must be separate from Congress taking action on the debt ceiling. And if Republicans decide to block such an action, the consequences will be all on them.
The problem, of course, is that Republicans are taking an equally firm stand. House Speaker John Boehner has vowed to raise the debt ceiling – which could hit its limit as early as mid-February – only if he gets dollar-for-dollar spending cuts. Mr. Boehner reiterated this position in a statement released after the president's press conference, which read: “The American people do not support raising the debt ceiling without reducing government spending at the same time. The consequences of failing to increase the debt ceiling are real, but so too are the consequences of allowing our spending problem to go unresolved.”
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