Barack Obama warns of default threat
The U.S. president warns that big businesses should be concerned with a conservative faction of Republicans willing to allow the country to default.
Barack Obama is refusing to negotiate with Republicans until they let the federal government go back to work and until the debt ceiling is raised, BBC reports.
In a TV interview on Wednesday, Obama said that he was exasperated. He held talks with Congressional leaders that ended without agreement. Speaker of the United States House of Representatives, Republican John Boehner told journalists that it was a good conversation but not much progress was made.
On 17 October, the US government will run out of cash to pay its bills unless the debt ceiling is raised.
Republicans have demanded concessions from Barack Obama and Democrats in return for funding the government's continued operation and for raising the debt ceiling. They demand the repeal, delay or defunding of Obama’s healthcare reform law that was a major issue in the presidential election last year. According to the reform, every American should have medical insurance and may even be fined for not having one.
Meanwhile, the U.S. shutdown may be risky for the USA and for the world economy is it lasts too long, President of the European Central Bank Mario Draghi said.
Photo: Reuters
