As clock ticks, sides aim for deal on debt - Detroit Free Press

WASHINGTON -- Precariously short of time, congressional leaders struggled in urgent, weekend-long talks to avert an unprecedented government default, desperate to head off a plunge in stock prices when Asian markets open ahead of the U.S. workweek.With the White House consigned to the sidelines of negotiations, Republicans sought to identify as much as 4 trillion in deficit cuts as a condition for <a href="http://newerahatstock.com/rock-star-hat-c-16.html"><strong>rock star</strong></a> raising the nation's debt limit.But after hours of staff negotiations followed by a meeting with Congress' top four leaders, Senate Majority Leader Harry Reid, D-Nev., accused GOP leaders of intransigence."Their unwillingness to compromise is pushing us to the brink of a default," he said in a sharply worded statement. "We have run out of time for politics. Now is the time for cooperation."There was no immediate response from either House Speaker John Boehner, R-Ohio, or Senate GOP Leader Mitch McConnell of Kentucky. Boehner had abruptly broken off his own promising talks with President Barack Obama <a href="http://newerahatstock.com/gucci-hat-c-7.html"><strong>gucci hat</strong></a> on Friday.Earlier Saturday, a grim-faced Obama met with Boehner, Reid, McConnell, Vice President Joe Biden and House Democratic leader Nancy Pelosi of California. But the meeting lasted just an hour.The White House said afterward that its staff would continue to try to forge a compromise. But White House press secretary Jay Carney also issued a stern statement: "Congress should refrain from playing reckless political games with our economy. Instead, it should be responsible and do its job, avoiding default and cutting the deficit."Boehner did not comment on the White House meeting, but McConnell said in a written statement, "The bipartisan leadership in Congress is committed to working on new legislation that will prevent default while substantially reducing Washington spending."In a conference call after the meeting, Boehner told rank-and-file Republicans that he hoped to be able to announce a "viable framework for progress" by 4 p.m. today, before the stock markets open in Asia, according to two participants. Lawmakers fear a big drop in investor confidence <a href="http://www.newerahatstock.com/"><strong>new era mlb</strong></a> in U.S. stocks and bonds could start in Asia and sweep toward Europe and the Americas, causing U.S. stock values to plunge Monday.Their goal now is to produce at least a framework agreement to raise the nation's debt limit by Monday, congressional officials said. Even that would allow scarcely enough time for the House and Senate to clear legislation in time for Obama's signature by Aug. 2.Barring action, the treasury will run out of money to pay all its bills, triggering a possible default that could seriously damage the domestic economy and send damaging waves across the globe.Obama has warned repeatedly of the possibility of a spike in interest rates that could affect Americans' mortgages, credit cards and other forms of personal debt.Negotiators are working against two avowedly nonnegotiable demands -- Obama's insistence on a plan that assures no rerun of the current crisis until 2013 at the earliest, and Boehner's requirement that spending cuts over 10 years must exceed the size of any increase in borrowing authority -- without any tax hike.To comply with both edicts, under most estimates, Congress would have to cut more than 2.4 trillion during the next decade.Complicating the talks are divisions within each party.Liberal Democrats generally oppose cuts in Medicare and Social Security, but other Democrats are willing to consider program changes.Tea party-backed Republicans oppose any higher taxes, but other GOP members <a href="http://dynastes.dy.funpic.de/phpBB2/viewtopic.php?p=76737#76737"><strong>As clock ticks, sides aim for deal on debt - Detroit Free Press</strong></a> are willing to consider them.