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'We are not a deadbeat nation': Obama warns Republicans if debt ceiling isn't raised, then American troops and Social Security checks won't be paid
- More than half of Republicans say they will allow the country to default on its debt unless Obama commits to deep spending cuts
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President Obama warned Republicans on Monday against failing to raise the debt ceiling, saying the move would withhold money from American troops and Social Security recipients.
'They will not collect ransom in exchange for not crashing the American economy,' Obama said of House Republicans, many of whom have vowed to delay raising the debt ceiling until Obama commits to steep spending cuts.
'America cannot afford another debate with this Congress about whether or not they should pay the bills they have already racked up,' Obama continued.
he piled pressure on Republicans, pointning out the consequences of America failing to pay its bills. 'We are not a deadbeat nation,' he said repeatedly.
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President Obama warned Republicans on Monday against failing to raise the debt ceiling, saying the move would 'send the markets haywire' and plunge the U.S. into a second recession
'If congressional Republicans refuse to pay America’s bills on time, Social Security checks and veterans’ benefits will be delayed,' Obama said. 'We might not be able to pay our troops or honor our contracts with small business owners.'
Threatening the safety of Americans at home and abroad, Obama also warned that food inspectors, air traffic controllers and specialists who collect loose nuclear material would not be paid.
'Markets could go haywire,' he said. 'Interest rates would spike for anybody who borrows money - every homeowner with a mortgage, every student with a college loan, every small business owner who wants to grow and hire.'
The move would slow down the recovery and 'might tip us into a recession,' he said. 'To even entertain the idea of this happening -of the United States of America not paying its bills - is irresponsible. It's absurd.'
Responding to Republican calls to offset increases in the debt ceiling with an equal amount of cuts, Obama said the two issues should be considered separately.
'The debt ceiling is not a question of authorizing more spending,' he said. 'Raising the debt ceiling does not authorize more spending, it simply allows the country to pay for spending that Congress has already committed to... these are bills that have already been racked up and we need to pay them.'
Meanwhile, House Speaker John Boehner, R-Ohio, released a statement insisting that Democrats accept new spending controls.
'The American people do not support raising the debt ceiling without reducing government spending at the same time,' Boehner said. 'The House will do its job and pass responsible legislation that controls spending, meets our nation's obligations and keeps the government running, and we will insist that the Democratic majority in Washington do the same.'
Obama rebuked the cuts that Republicans have proposed and challenged them to bring the proposals to Congress for a vote
'If they think that they can get that through Congress, then they are free to go ahead and try,' Obama said, calling out Boehner and Senate Minority Leader Mitch McConnell, R-Kentucky, by name.
He said he refused to accept that Congress would risk a default to make a political point.
Obama held the press conference, the last of his first term, as it was revealed that more than half of House Republicans are prepared to allow the U.S. to default on its debt unless he commits to steep spending cuts.
'We always talk about whether or not we’re going to kick the can down the road,' House Republican Conference Chairwoman Cathy McMorris Rodgers told Politico. 'I think the mood is that we’ve come to the end of the road.'
While the results of a default would be dire for the economy, most Republicans agree it's a better option than allowing additional debt to pile up without an equal-or-greater offset of deep spending cuts.
If House Republicans choose not to force President Obama's hand on spending cuts with the threat of a default, they are planning to shut down the government in March when a six-month temporary funding measure expires.
'I think it is possible that we would shut down the government to make sure President Obama understands that we’re serious,' McMorris Rodgers said.
Congress has been repeatedly authorizing temporary funding measures to pay for government operations over the last three years, since lawmakers have been unable to compromise on an annual budget since 2009. The last temporary measure was passed in September and it expires on March 27.
Republicans threatened a shutdown over budget negotiations in the spring of 2011 but a deal was eventually reached (albeit an hour after the deadline) to avert a suspension of operations.
The government has shut down a total of 15 times since Jimmy Carter was president, with most of these episodes lasting only a couple days. One of the most famous shutdowns in history was in 1995, when the government was left without funding for 21 days due to a budget standoff between President Bill Clinton and then-House Speaker Newt Gingrich.
During that time, from Dec. 16, 1995 to Jan. 6, 1996, roughly 800,000 federal workers were furloughed and 'nonessential' government functions were suspended, including the processing of visas and cleanup at toxic waste sites.
The episode also closed national museums, monuments and hundreds of national park sites.
VIDEO: Obama demands immediate action to raise debt ceiling
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- Production halted on reality show starring rapper who fathered eleven children by ten women after public...
- Firefighters free terrified woman trapped in tiny gap between two walls for FOUR HOURS
- 'I'm sorry... I am happier now': Suicide note of decorated marine, 24, who killed himself in his childhood...
- Soldier's agony as court puts temporary block on return of daughter, 2, who his wife gave up for adoption...
- Lance Armstrong's Oprah 'doping' confession could cost him millions: Cyclist faces claims from sports...
- 'Lance Armstrong should be sitting in front of a judge, not Oprah': Anger of former assistant whose life was...
- Chicago pays $22.5 MILLION to woman who was gang raped and plummeted from seventh story window after police...
- Oprah is cashing in on Lance and 'hopes the drug cheat's exclusive interview can save her struggling...
- Loyal dog guards his master in freezing water for THIRTY MINUTES after man falls through ice
- New York subway rider falls to his death while trying to defecate between train cars
- Mom gets her toe bit by a 'giant rat' while enjoying show at NYC Blues club
Editor's six of the best
- The spectacular Spider-Man: Artist painstakingly captures webbing to create unique pieces of art
- Nevada mansion with its own backyard WATER PARK makes a $3 million splash on real estate market
- Watch the moment two grown businessmen fight over a NYC cab
- A dog acts on her maternal instincts and nurses a stray kitten as if it was her own puppy
- Man who pretended to be blind to get sympathy and carers found dead in a ditch
- Talk about jumping on the bandwagon! Ohio marching band joins the Gangnam craze in hilarious dance video as they stop, drop and roll to the beat
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