White House blasts 'radical' Republican abortion bans

The White House on Friday blasted the latest set of "radical" abortion restrictions in four more states run by Republicans, signaling President Joe Biden's determination to lean on the issue ahead of tight November congressional elections.

There are now full-scale abortion bans in 12 Republican-controlled states, which had prepared so-called trigger laws ready to be activated when the Supreme Court overturned the landmark Roe v. Wade decision ensuring automatic rights to abortion access nationwide.

"Today marks the latest attack against the fundamental rights of Americans as new abortion bans go into effect in Idaho, Oklahoma, Tennessee, and Texas," Press Secretary Karine Jean-Pierre said in a statement.

"These near-total abortion bans are part of a growing effort by Republican legislators to roll back the freedoms Americans have relied on for nearly half a century. Today's radical steps take away women's reproductive rights and put personal health care decisions in the hands of politicians instead of women and their doctors," she said.

The Supreme Court ruling two months ago put jurisdiction over abortion access in the hands of individual state legislatures, immediately turning swaths of the country into areas where getting the procedure has become all but impossible.

Jean-Pierre echoed Biden's frequent demand for Congress to pass a new law enshrining nationwide abortion rights and urged "people across the country to make their voices heard" ahead of the November midterm elections, which will decide whether Democrats retain their narrow hold on the legislature.

Republicans have fought for decades to overturn the 1973 Roe v. Wade decision and finally achieved their goal in a Supreme Court that tilted sharply to conservative interpretations of the constitution after Donald Trump filled three vacancies during his one-term presidency.

Polls show the court's ruling was unpopular with a majority of Americans, however, and Democrats hope the issue will help them fend off a previously predicted sweep by Republicans in the midterms. 

"I think the American people realize this is just beyond the pale, it goes too far," Biden told reporters at the White House.

Meanwhile, the White House is trying to help women who want to circumvent the bans by supporting their travel to states that do allow abortions.

The health department on Friday announced increased federal funding for states where the authorities want to help such women.

"We have seen the gut-wrenching stories of women suffering and not getting the care they need because of newly-enacted laws that restrict abortion care," Health Secretary Xavier Becerra said.

The new federal assistance will "protect women's access to reproductive care, including abortion," he said.

Agence France-Presse

US House Speaker Nancy Pelosi, tepid no more on Trump impeachment

WASHINGTON — Nancy Pelosi, already the most powerful woman in US political history, has just launched an extraordinary and turbulent process which — if it fulfills its goal — would oust a sitting American president.

After resisting fellow Democrats' calls to impeach Donald Trump from the moment she became speaker of the US House of Representatives in early January, the tough-as-nails lawmaker changed course Tuesday, announcing an "official impeachment inquiry" by the House into her political nemesis.

Should it succeed, Pelosi's reputation as a master political tactician will be sealed.

If it fails — and the likelihood that Trump is not ousted is high, given that his Republicans control the Senate — her politically perilous gambit has the potential to antagonize voters ahead of the 2020 presidential election.

Twelve years ago, Pelosi made history as the first woman elected House speaker. Once again wielding the gavel, her political comeback is complete.

The 79-year-old has spent the year seeking to keep Trump in check, challenging him on immigration policy, the budget, gun violence and more.

But she has also tamped down the impeachment groundswell, saying such a procedure should be launched only if the American people support it, and arguing that the best way to remove the Republican commander-in-chief was at the ballot box.

"I've tried to avoid the situation that we're in now, because it was very divisive for the country," Pelosi told a forum Tuesday just before her bombshell announcement.

Her calculus changed. Most House Democrats back impeachment, and the number has only grown following revelations of a whistleblower's complaint that is believed to center around actions by Trump, including his call to the president of Ukraine.

"The president must be held accountable," she said in announcing the inquiry. "No one is above the law."

Pelosi is the nation's third most senior official, a great survivor in American politics.

To reclaim the speaker's gavel she lost nine years ago, the California power broker diligently plotted a remarkable comeback that has impressed allies and opponents alike.

"She's a worthy adversary," conservative congressman Mark Meadows told AFP in January.

In her opening speech to a new Congress, she said she was "particularly proud" to take the gavel with a record number of women lawmakers on Capitol Hill.

That she is the new speaker in the #MeToo era — and the opponent-in-chief to a brash president accused by multiple women of abuse or harassment over the years — reflects the increasing influence of women on the nation's political process.

'Totally on board'

Nancy Patricia D'Alesandro was born in March 1940 in Baltimore to a political family with Italian roots. Both her father and brother were mayors of the East Coast port city.

After studying political science in Washington, she moved with her husband to San Francisco, where they raised five children.

First elected to the House in 1987, Pelosi represents California's 12th congressional district including San Francisco — a stronghold of left-wing politics.

She rose through the ranks to first become minority leader for the Democrats in 2003.

Pelosi assumed the speakership for the first time in 2007, during the presidency of George W Bush. She was a strong opposing force to the Republican leader, and her role as a check on Trump has been similar.

But at times she has struggled to tightly corral her own caucus, notably a group of first-term progressives who have clashed bitterly with Trump, and occasionally squabbled with Pelosi herself.

A quartet of ethnic-minority congresswomen known as "The Squad" — Alexandria Ocasio-Cortez, Ilhan Omar, Ayanna Pressley and Rashida Tlaib — were early proponents of impeachment.

Occasionally they leaned on leadership to move more quickly against Trump, but Pelosi's methodical approach won out.

Omar sounded grateful for Pelosi's step forward Tuesday.

"She wants to make sure that we are moving on impeachment and moving swiftly," Omar said. "And I am totally on board for that."

Earlier this year, Pelosi threaded a political needle, standing up to Trump when needed but also showing that her party is capable of working with the president to pass legislation.

But that cooperation frayed. Pelosi and the Democratic leadership have hamstrung large parts of Trump's agenda, ranging from proposed new tax cuts to building a wall on the US-Mexico border.

Certainly with the impeachment inquiry, any good will between Pelosi and Trump has evaporated.

Pelosi is unquestionably among the savviest political leaders of her generation. She shepherded then-president Barack Obama's signature health care law through the House to its contentious, historic passage in 2010.

Perhaps for that reason she is vilified by Republicans.

Conservatives depict Pelosi, the wife of an investment millionaire, as the embodiment of leftist elitism.

She is accused of everything from wanting to raise taxes for middle-class families to supporting illegal immigration.

source: philstar.com

US govt lurches to shutdown as Trump, Democrats spar over wall

WASHINGTON, United States — Donald Trump and congressional Democrats stood at stark odds Thursday as the president balked at a spending stopgap that contains no border wall funding, leaving the US government on the verge of a Christmastime shutdown.

The unpredictable leader's rejection of a measure that unanimously passed the Senate and was under consideration in the House plunged Washington into political chaos barely 24 hours before a midnight Friday deadline for funding to expire for key agencies.

Trump appeared to harden his demand for $5 billion in funding for the wall on the US-Mexico border, something he has fought for since he began campaigning for president in 2015.


Republican leaders had planned to pass a so-called continuing resolution (CR) that would fully fund the government until February 8 to allow time for debate about issues including border security.

But with ultra-conservative lawmakers and media personalities effectively demanding that the president stick to his campaign promises, Trump doubled down.

"I've made my position very clear. Any measure that funds the government has to include border security," he said at a White House event.

"Walls work, whether we like it or not," he added. "They work better than anything."

Democrats have refused to budge, saying they will not support a spending measure that funds Trump's wall.

"That's a non-starter," said top House Democrat Nancy Pelosi. "I think they know that."

Republicans nevertheless soldiered on, crafting a new measure that would appease the president's demands. It includes $5.7 billion in border wall funding, and $7.8 billion in disaster relief.

The bill passed the House, but with no Democratic support.

"Thank you to our GREAT Republican Members of Congress for your VOTE to fund Border Security and the Wall," Trump tweeted Thursday night.

"The final numbers were 217-185 and many have said that the enthusiasm was greater than they have ever seen before. So proud of you all. Now on to the Senate!"

But the bill will be dead on arrival in the 100-member Senate, where bills need 60 votes to advance and Republicans control 51 seats.

Trump also taunted Pelosi over comments she made last week that Republicans would not have the necessary votes in the House of Representatives.

"Nancy does not have to apologize," he said. "All I want is GREAT BORDER SECURITY!"

Senate Democrats were united in opposition as the likely Friday showdown in that chamber loomed. Many senators from both parties have already left Washington for the holidays.

"President Trump is plunging the country into chaos," warned Senate Minority Leader Chuck Schumer, citing shutdown fears, fresh economic woes, and the shock revelation that Secretary of Defense Jim Mattis, a stabilizing force in Trump's administration, was stepping down.

"The bottom line is simple," he added. "The Trump temper tantrum may produce a government shutdown. It will not get him his wall."

- 'Meltdown' -

Fears of a shutdown -- which could send thousands of federal employees home without pay just before Christmas -- helped send US stocks tumbling, with the Dow closing down 2.0 percent.

Trump had backed off his shutdown threat earlier this week, but it roared back to life as he accused Democrats of "putting politics over country" by not supporting a wall, which he insists will curb illegal immigration.

His move may have been influenced by members of the House Freedom caucus, some of whom have publicly called on the Republican president to stick to his guns on wall funding.

"Mr. President, we'll back you up," caucus chairman Mark Meadows said on the House floor late Wednesday. "If you veto this bill (with no wall funding), we'll be there."

With conditions fluid on Capitol Hill, it appeared that a retreat by Trump was the only path to averting a shutdown.

However, White House spokeswoman Sarah Sanders suggested that was unlikely.

"We urgently need funding for border security and that includes a wall," she said.

Pelosi, the likely new speaker of the House when Democrats reclaim the majority on January 3, accused Republicans of having a "meltdown" over whether to pass the stopgap measure or force a shutdown.

The news of Trump's rejection caught many Republican lawmakers flat-footed.

Senator Roy Blunt said worry is likely to set in on Friday.

"It's hard to come up with politics that are worse than shutdown politics," he told Politico. "Unless it's shutdown at Christmas politics."

The US government endured two brief shutdowns in early 2018. A far more crippling shutdown in 2013 lasted 16 days, with about 800,000 federal workers furloughed amid a fight over funding Barack Obama's healthcare reforms.

source: philstar.com

Democrats scent victory over Trump's Republicans in Congress

WASHINGTON, United States — Democrats began to scent a big night in the US midterm elections Tuesday with early results pointing to them seizing the House of Representatives from the Republicans in what would be a dramatic rebuke to President Donald Trump.

With polls yet to close in swaths of the country, it was still far too early to know who will control the House and Senate, which for the first two years of Trump's presidency have been held by his Republican allies.

However, initial results -- like the flipping by Jennifer Wexton of a previously solidly Republican Virginia seat in the House -- signalled that pre-election predictions of Democrats taking over the lower chamber may be confirmed.


Democrats were also heartened by heavy turnout after a bitter campaign which at Trump's own insistence was widely seen as an unofficial referendum on his polarizing presidency. From New York to California and from Missouri to Georgia there were long lines from early morning at polling stations.

Although Republicans remained forecast to keep control of the Senate, a Democratic House would upend the current Washington power balance.


Trump has spent months ahead of the midterms deriding the Democrats as bent on destroying the US economy and allowing criminals to run riot.

But with the party leading the House, Trump would be forced to compromise more -- or risk presiding over an ever more divided country. Democrats, still smarting from Trump's extraordinary upset win against Hillary Clinton in 2016, would likely use their ascendancy to exact payback.

Democratic leadership of the House's powerful investigative committees would breathe new wind into probes of Trump's opaque personal finances, Russian interference in the 2016 election, and even calls for his impeachment.

Confident Democratic leaders
All 435 seats in the House of Representatives, 35 seats in the 100-member Senate and 36 governorships were up for grabs.

Polls indicated that Democrats have a good chance of winning the 23 seats they need to seize the House, while Republicans could slightly increase their razor-thin Senate majority of 51-49.

Pollsters, gun shy after getting their 2016 predictions wrong, urged caution. Several dozen midterm races where candidates from the two sides were barely separated will decide the day.

Even so, Democrats were confident, with Nancy Pelosi, the party's top leader in the House, saying "it's just a question of the size of the victory."

Former vice president Joe Biden, often touted as a possible Democratic candidate to take on Trump in 2020, said he'd be "dumbfounded" not to win the House.

The first polling stations closed at 6:00 pm Eastern time (2300 GMT) in parts of Kentucky and Indiana, with the last to close seven hours later in Alaska, and results trickling in through the evening.

Big turnout
Voters often sit out the midterms. This time, they're sitting up.

According to Michael McDonald of the US Elections Project, 38.4 million Americans cast their ballots early ahead of this election, compared with 27.4 million in the 2014 midterm.

And on the streets there was a palpable buzz.

"We have already seen huge turnout, people out and about knocking on doors, making sure everybody gets out there, but I think turnout will be very, very high," Democratic candidate Katie Porter, who is running in Irvine, California, against two-term Republican incumbent Mimi Walters, told AFP.

On the other side of the country, in Atlanta, Georgia, voters waited in line for nearly two hours to cast ballots, according to local media reports.

At a polling station in Arlington, Virginia, head election officer William Harkins said "it's a very good turnout."

Trump himself noted the energy as he wrapped up a punishing schedule of rallies around the country that were intended to boost Republican candidates -- and his own brand heading towards reelection in 2020.

"The midterm elections used to be, like, boring," Trump told a crowd in Cleveland, Ohio, on Monday. "Now it's like the hottest thing."

Immigration fears
Trump was watching the results alongside friends and family at the White House, his spokeswoman said.

The president so dominates politics across the country that despite not being on any ballot he has made the election largely about him.

Voting in Chicago, James Gerlock, 27, a Republican, said he wanted to see more of the soaring economic growth that Trump says is the fruit of his business-friendly policies.

"I am extremely happy with the economy," Gerlock said. "I just want to keep everything moving, because I'm loving it."

But Democrats have been fired up by anger at Trump's extraordinary attacks over the last few weeks against immigrants, claiming that his opponents seek to throw open the borders to "drug dealers, predators and bloodthirsty MS-13 killers."

Trump has sent soldiers to the Mexican border, threatened to have illegal immigrants shot if they throw stones at the border, and vowed to restrict citizenship rights.

Beto O'Rourke, a charismatic Democrat in a closely watched bid to dethrone Republican Senator Ted Cruz in Texas, told voters that Trump was wrong, describing his state as built from "immigrants, asylum seekers and refugees."

The result in Texas will say much about which way argument has worked best in these polarized times. Other tight Senate races are in Arizona, Florida, Indiana, Missouri, Montana, New Jersey, Nevada, North Dakota, Tennessee and West Virginia.

source: philstar.com

Trumped by Trump, Republicans stumped for words

WASHINGTON -- The awkward efforts of Republicans to embrace their party’s standard-bearer Donald Trump looked particularly painful in Congress this week as lawmakers ducked into elevators, dashed away from reporters, ignored questions or, worse, tried to answer them.

Only days after a furor over his criticism of a Mexican-American judge, the presumptive presidential nominee sent Republicans reeling again by renewing his call for a ban on Muslim immigration after a gunman who pledged allegiance to Islamic militants killed of 49 people at a Florida nightclub.

Then former reality TV star Trump waded into two sensitive topics for social conservatives by embracing the lesbian, gay, bisexual and transgender community and suggesting the country may need certain new gun control measures.

For lawmakers accustomed to well-crafted talking points and predictable lines of questioning, the week marked a chaotic flurry of contorted responses or terse, tight-lipped replies.

Senator John Barrasso of Wyoming walked away when asked about Trump's embrace of the LGBT community, saying: "I don’t know what the latest is. I haven’t read anything. I haven’t been watching."

Florida Senator Marco Rubio, a former Trump adversary in the presidential primaries, had to bat away two Trump questions before he could announce that he is considering running for re-election -- a decision that could determine whether Republicans retain control of the Senate in the November 8 election.

Senator Ted Cruz, another rival in the primaries, refused to respond directly to the speech in which Trump hardened his line on Muslims while Senate Intelligence Chairman Richard Burr called it “an OK speech” before stepping into an elevator and refusing to respond to any more questions.

The Trump challenge is obvious even for seasoned Republicans. 

"I'm spending my days commenting on everything that Donald Trump says," lamented John McCain, chairman of Senate Armed Services Committee.

Orrin Hatch, the longest-serving Republican in the Senate, ricocheted from rejection of Trump’s comments on Muslims to doubts about the legality of his proposed immigration ban to bafflement over the billionaire’s response to the Orlando shootings.

'You can't make this up'

Trump controversies have also overshadowed House Speaker Paul Ryan’s rollout of a policy agenda, a campaign document that was supposed to help bring Trump’s position more into line with mainline party doctrine.

Asked on Thursday whether he was bothered by having to contend with Trump's remarks, Ryan called Trump "a different kind of candidate ... (in) a different kind of year."

Asked how many more times he would be called on to do so, Ryan said: "I don't know the answer to that question either."

In an ironic message to his critics among the Republican leadership this week, Trump had this to say: "Be quiet, just please be quiet. Don't talk. Please be quiet. Just be quiet.”

Ryan's response? "... You can't make this up sometimes," he said.

A political neophyte who has never held elected office, Trump has also said he may not need much from his Republican colleagues on Capitol Hill anyway.

"We have to have our Republicans either stick together or let me just do it by myself. I’ll do very well,” he said in a CNN interview. “A lot of people thought I should do that anyway, but I'll just do it very nicely by myself." 

source: interaksyon.com

Republicans seize control of US Senate in midterm polls

WASHINGTON -- Republicans rode a wave of voter discontent to sweeping midterm election wins on Tuesday, seizing control of the US Senate in a punishing blow to President Barack Obama that will limit his political influence and curb his legislative agenda in his last two years in office.

Republicans won in places where Democrats were favored, like a Senate race in North Carolina, pulled out victories where the going was tough, like a Senate battle in Kansas, and swept a number of governors' races in states where Democrats were favored, like Obama's home state of Illinois.

They also strengthened their grip on the House of Representatives and when the new Congress takes power in January, will be in charge of both chambers of Congress for the first time since elections in 2006.

Obama, first elected in 2008 and again in 2012, called Democratic and Republican leaders of Congress to the White House on Friday to take stock of the new political landscape. He watched election returns from the White House, and saw little to warm his spirits.

Republican Senator Mitch McConnell of Kentucky, who won a tough reelection battle against Democrat Alison Lundergan Grimes, will replace Democrat Harry Reid as Senate majority leader.

“Some things don’t change after tonight. I don’t expect the president to wake up tomorrow and view the world any differently than he did when he woke up this morning. He knows I won’t either. But we do have an obligation to work together on issues where we can agree," McConnell said in his victory speech in Louisville.

Republicans needed six seats to win control of the 100-member Senate, and by late evening they had seven.

The winning margin came when Iowa Republican Joni Ernst was declared the winner over Democrat Bruce Braley and Republican Thom Tillis defeated incumbent Democratic Senator Kay Hagan in North Carolina.

Republican Senate candidates also picked up Democratic seats in Montana, Colorado, West Virginia, South Dakota and Arkansas.

The Republican surge will force Obama to scale back his legislative agenda and limit his ambitions to either executive actions that do not require legislative approval, or items that might gain bipartisan support, such as trade agreements and tax reform.

It will also test his ability to compromise with newly empowered political opponents who have been resisting his legislative agenda since he was first elected.

'Terrific night'

But Republicans, hoping to win the White House in 2016, will also be under pressure to show Americans they are capable of governing after drawing scorn a year ago for shutting down the government in a budget fight.

“Tonight was a terrific night for Republicans. It was a powerful repudiation of the Obama agenda, and the Obama economy, which isn’t working," Republican Senator Ted Cruz, a conservative firebrand, told CNN.

"The American people, they’re frustrated with what’s happening in Washington, but now the responsibility falls on us to lead," he said.

Partisan battles could erupt over immigration reform, with Obama poised to issue executive actions by year's end to defer deportations of some undocumented immigrants, and over energy policy, as Republican press the president to approve the Keystone XL pipeline carrying oil from Canada.

The Republican victory had been widely predicted ahead of Tuesday's voting to elect 36 senators, 36 state governors and all 435 members of the House of Representatives.

Election Day polling by Reuters/Ipsos found a dour mood among the electorate with less than one-third of voters believing the country is headed in the right direction.

Roughly 40 percent of voters said they approved of the job Obama is doing as president, though they were split over whether they expected the economy to improve or worsen in the coming year.

In a consolation win for Democrats, Jeanne Shaheen won re-election over Republican Scott Brown in New Hampshire in what polls had forecast as a tight race.

In Virginia, heavily favored Democratic incumbent Senator Mark Warner found himself in a surprisingly close fight against Republican challenger Ed Gillespie, with much of the vote counted. By late evening, he claimed victory but Gillespie had not yet conceded.

In the most closely watched governors' races, Florida's Republican Governor Rick Scott edged out Democrat Charlie Crist, and Republican Scott Walker survived a challenge from Democrat Mary Burke in Wisconsin.

The White House tried to play down the prospect of sharp changes in strategy after the election, saying Obama would seek common ground with Congress on areas like trade and infrastructure.

On other issues, like climate change and immigration reform, Obama is likely to continue to take actions on his own. By the end of the year, he is expected to announce executive action to defer deportations for some undocumented immigrants.

Jay Carney, Obama's former spokesman, said he expects Obama to make an "all-out push" on his priorities regardless of the makeup of Congress.

Whatever the case, Obama will face pressure to make changes at the White House. A Reuters/Ipsos poll showed 75 percent of respondents believe the administration needs to "rethink" how it approaches major issues facing the United States.

Sixty-four percent said Obama should replace some of his senior staff after the election.

source: interaksyon.com

Obama, congressional leaders still deadlocked on shutdown

WASHINGTON -- President Barack Obama met with Republican and Democratic leaders in Congress on Wednesday to try to break a deadlock that has shut down wide swaths of the federal government, but there was no breakthrough.

After more than an hour of talks, House of Representatives Speaker John Boehner said Obama refused to negotiate, while House Democratic Leader Nancy Pelosi and Senate Democratic Leader Harry Reid accused Republicans of trying to hold the president hostage over Obamacare.

Reid said Obama told Republicans "he will not stand" for their tactics.

As hundreds of thousands of federal employees faced a second day without pay, leaders of the Republican-controlled House of Representatives and the Democratic-led Senate offered token concessions that were quickly dismissed by the other side. Obama, meanwhile, scaled back a long-planned trip to Asia.

Republicans have tried to tie continued government funding to measures that would undercut Obama's signature healthcare law. Obama and his Democrats say that is a non-starter.

"The president reiterated one more time that he will not negotiate," Boehner told reporters after the White House meeting. "All we're asking for here is a discussion and fairness for the American people under Obamacare."

Reid said Democrats were willing to discuss any ways to tackle the budget after a temporary funding bill is passed. "We're through playing these little games," he said.

The shutdown, which took effect Monday at midnight (0400 GMT Tuesday), has raised questions about Washington's ability to carry out its most essential duties.

Though it would do relatively little damage to the world's largest economy in the short term, global markets could be roiled if Congress also fails to raise the debt limit before borrowing authority runs out in coming weeks.

The shutdown has closed landmarks like the Grand Canyon and prevented some cancer patients from receiving cutting-edge treatment.

United Technologies Corp, which makes Sikorsky helicopters and other items for the military, said it would be forced to furlough as many as 4,000 employees, if the US government shutdown continues through next week, due to the absence of government quality inspectors.

Exasperated

"Am I exasperated? Absolutely I'm exasperated. Because this is entirely unnecessary," Obama told CNBC television in an interview before meeting the congressional leaders. "I am exasperated with the idea that unless I say to 20 million people, 'You can't have health insurance,' these folks will not reopen the government. That is irresponsible."

The US Army's top general said the shutdown was significantly harming day-to-day operations, and intelligence leaders say it is undermining their ability to monitor threats. A Federal Reserve official said it could delay the central bank's ability to assess whether its monetary stimulus efforts are still needed.

The uncertainty in Washington has forced the White House to scale back an Asia trip that was designed to reinforce US commitment to the region.

Obama scuttled two stops on a planned four-country tour and left visits to two other countries up in the air. He was due to leave on Saturday and return a week later.

Secretary of State John Kerry will visit Malaysia and the Philippines in his place. Obama is weighing whether to attend diplomatic summits in Indonesia and Brunei, a White House official said.

Despite the disruption, Boehner's Republicans have failed to derail Obama's controversial healthcare law, which passed a milestone on Tuesday when it began signing up uninsured Americans for subsidized health coverage.

Though some moderate Republicans have begun to question their party's strategy, Boehner so far has kept them united behind a plan to offer a series of small bills that would re-open select parts of the government most visibly affected by the shutdown.

The Republican-controlled House passed and sent to the Senate a funding bill that would re-open the National Institutes of Health, which conducts medical research, and another bill to reopen shuttered federal parks and museums, such as the Smithsonian museums, the National Gallery of Art and the Holocaust Memorial Museum in Washington.

Both bills passed with the support of about two-dozen Democrats, who joined Republicans. The House was expected to vote Thursday on measures to fund veterans' care, the District of Colombia and the Army Reserve.

The measures are likely to be defeated in the Democratic-controlled Senate, and Obama said he would veto them if they reached his desk.

Still, they allowed Republicans to charge that their adversaries are standing in the way of help for elderly veterans and young cancer patients. "Will they now say 'no' to funding for veterans, our National Parks and the National Institutes of Health?" asked Boehner spokesman Michael Steel.

Reid told Republicans he would engage in talks about tax reform, farm policy and other pressing issues that Congress has failed to address once Republicans agreed to re-open the government without conditions. Republicans dismissed that idea.

A Reuters/Ipsos poll indicated that 24 percent of Americans blamed Republicans for the shutdown, while 19 percent blamed Obama or Democrats. Another 46 percent said everyone was to blame.

Bigger fight ahead

The shutdown fight is rapidly merging with a higher-stakes battle over the government's borrowing power that is expected to come to a head soon.

Treasury Secretary Jack Lew has said the United States will exhaust its borrowing authority no later than October 17.

The government could have difficulty paying pension checks, interest charges and other bills after that point.

Many Republicans see the debt limit vote as another opportunity to undercut Obama's healthcare law or extract other concessions -- an approach that business groups say could lead to disaster.

"You can re-litigate these policy issues in a political forum, but they shouldn't use the threat of causing the US to fail on its ... obligations to repay on its debt as a cudgel," Goldman Sachs chief executive Lloyd Blankfein told reporters after he and other financial-industry executives met with Obama.

Some Democrats have begun to consider asking Obama to unilaterally raise the debt ceiling on his own -- a move that could lead to years of court battles. The White House has said that approach is not feasible.

Asked whether there is a push underway among Democrats to convince Obama that he should use this power, a senior House Democrat who asked not to be identified said: "No, not at this point."

Stock investors on Wednesday appeared to show growing anxiety over the standoff after taking the news in their stride on Tuesday. The S&P 500 and the Nasdaq both closed down 0.1 percent.

Obama said Wall Street should be worried about the debt ceiling. "I think this time's different. I think they should be concerned," Obama told CNBC. "When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble."

A short-term shutdown would slow US economic growth by about 0.2 percentage points, Goldman Sachs said on Wednesday, but a weeks-long disruption could weigh more heavily -- 0.4 percentage points -- as furloughed workers scale back personal spending.

The last shutdown in 1995 and 1996 cost taxpayers $1.4 billion, according to congressional researchers.

source: interaksyon.com

Obama warns Wall Street over fiscal crisis

WASHINGTON - President Barack Obama sent Wall Street a blunt warning Wednesday that it should be very worried about a political crisis that has shut down the government and could trigger a US debt default.

Obama said he was "exasperated" by the budget impasse in Congress, in an interview with CNBC apparently designed to pressure Republicans by targeting the financial community moments after markets closed.
 




The president then met Republican and Democratic leaders for their first talks since the US government money's ran out and it slumped into a shutdown now well into its second day.

But few informed observers held out much hope for a sudden breakthrough.

Obama was asked in the interview whether Washington was simply gripped by just the latest in a series of political and fiscal crises which reliably get solved at the last minute.

In unusually frank comments on issues that could sway markets, Obama warned that investors should be worried.

"This time's different. I think they should be concerned," Obama said, in comments which may roil global markets.

"When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble," Obama said.

Obama said he would not negotiate with Republicans on budget matters until House lawmakers pass a temporary financing bill to reopen federal operations and raised the $16.7-trillion debt ceiling.

If the borrowing limit is not lifted by the middle of the month, the US government could default on its debts for the first time in history.

"If and when ... that vote takes place and the government reopens, and if and when they vote to make sure Congress pays our bills on time so America does not default on costs it's already accrued, then I am prepared to have a reasonable, civil negotiation around a whole slew of issues," Obama said.

The president said he had "bent over backwards" to accommodate Republicans -- a statement his foes would dispute -- but warned it would set a terrible precedent to allow lawmakers of any party to hold a White House to ransom over raising the debt ceiling.

Exasperated

"Absolutely I am exasperated, because this is entirely unnecessary," Obama said.

The government shutdown has sent 800,000 federal workers home, closed museums, national parks and monuments and crippled government services.

Obama wants a straightforward temporary spending bill to end the first shutdown in 17 years, while Tea Party Republicans have repeatedly tied the measure to a dismantling or delay of his signature health care law.

With neither side willing to budge, hopes of an early exit to the shutdown are fading.

"Most of the time you can see an end game," Republican Senator Johnny Isakson told MSNBC. "Right now there's no end game in sight."

Some signs of incremental movement emerged, with Democrats pledging to appoint negotiators to thrash out a long-term budget -- provided that the Republicans agree to an immediate six-week federal spending measure with no anti-Obamacare provisions.

Obama met at the White House with his chief political rival, House Speaker John Boehner, as well as top Senate Republican Mitch McConnell to address the standoff.

Senate Majority Leader Harry Reid and top House Democrat Nancy Pelosi were also there.

Boehner's office said the fact the talks were taking place was a victory in itself and had the potential to lead to "serious talks between the two parties."

A risk if protracted

European Central Bank chief Mario Draghi warned Wednesday that a US shutdown "is a risk if it is protracted."

"It would be a risk not only for the US, but also the world economy," Draghi said.

Obama on Wednesday gathered a group of high flying CEOs, apparently hoping they would pressure Boehner to pass a straight temporary funding bill.

Goldman Sachs boss Lloyd Blankfein warned that America was getting onto dangerous ground by flirting with not raising the debt ceiling. A previous period of brinkmanship on the issue badly hit the US credit rating.

"There's a precedent for a government shutdown, there's no precedent for a default," he said after meeting Obama.

Furious tourists meanwhile are locked out of Washington museums and monuments, as well as national parks and landmarks like the Statue of Liberty in New York. Cancer research and treatment at the world-class National Institutes of Health has ground to a halt.

The fallout has already caused Obama to shorten his long-planned Asia trip, scrapping stops in Malaysia and the Philippines that were due to begin this weekend, so he could attend to the crisis at home.

The president's attendance at regional summits in Indonesia and Brunei was also in doubt.

A no show in Asia would be seen as a blow to Obama's policy of rebalancing US diplomacy and military might towards the fast growing region.

But James Clapper, Director of National Intelligence warned lawmakers that US security was already being compromised.

Seventy percent of the intelligence workforce had been furloughed, potentially offering an opening to foreign recruiters in the field, Clapper said.

"This seriously damages our ability to protect the safety and security of this nation," Clapper said.

source: interaksyon.com

US govt shuts down

The United States lurched into a dreaded government shutdown early Tuesday for the first time in 17 years, triggering agency closures and hundreds of thousands of furloughs as Congress missed a deadline to pass a budget.

Ten minutes before midnight bells rang throughout a deeply divided Washington, and after a day of furious brinkmanship President Barack Obama's Democrats and rival Republicans, the White House ordered federal agencies to initiate their shutdown procedures.

"We urge Congress to act quickly to pass a Continuing Resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year," Management and Budget director Sylvia Mathews Burwell said in a memo to agencies.

Lawmakers had hardly haggled over budgetary matters in the final frantic hours before the deadline -- the end of the fiscal year. Instead, they argued over whether to link the budget pact with efforts to delay Obama's health care law.

"This is an unnecessary blow to America," Senate Majority Leader Harry Reid said on the Senate floor two minutes after the witching hour.

As a mood of crisis enveloped Washington no compromise emerged to head off the first such disaster since 1996.

Instead, the Democratic-led Senate and Republican House of Representatives played a futile game, sending funding bills between them that were doomed to fail.

Obama accused Republicans of holding America at ransom with their "extreme" political demands, while his opponents struck back at his party's supposed arrogance.

Around 800,000 government workers are expected to be sent home, government services are to be slashed and monuments such as the Statue of Liberty and national parks will close.

The crisis is rooted in an attempt by "Tea Party" Republicans in the House to make passage of a new government budget conditional on thwarting Obama's signature health reform law.

The Democratic-led Senate and the president have repeatedly rejected this strategy and urged Republicans to pass an extension to government funding to temporarily stave off the shutdown.

In a deeper sense, the shutdown is the most serious crisis yet in a series of rolling ideological skirmishes between Democrat Obama and House Republicans over the size of the US government and its role in national life.

"One faction of one party in one house of Congress in one branch of government doesn't get to shut down the entire government just to re-fight the results of an election," Obama said, referring to his own re-election.

"You don't get to extract a ransom for doing your job, for doing what you're supposed to be doing anyway," he said, in a stern televised statement at the White House.

But on a day of accelerating brinkmanship, Republicans doubled down on their bid to gut Obamacare, as the health care law, the most sweeping social legislation in decades, is known.

With just three hours to go, House lawmakers passed a bill that would delay the individual mandate, which forces all Americans to buy health insurance under the new law, for a year.

"It's a matter of fairness for all Americans," said Republican House speaker John Boehner, who has struggled to control the riotous anti-government Tea Party faction of his caucus.

But the Senate, which must also sign off on budget measures, immediately rejected the bill.

That led House leaders, less than an hour before midnight, to move to go to conference, meaning the two chambers would appoint formal negotiators to thrash out a budget deal.

That process was already showing signs that it would take hours to coordinate, and Reid sent the Senate into recess until 9:30 am Tuesday.

"We said we'd go to conference if they wouldn't shut the government down, but they're shutting the government down," number two Senate Democrat Dick Durbin told AFP.

Obama warned that a government shutdown could badly damage an economy which has endured a sluggish recovery from the worst recession in decades.

"A shutdown will have a very real economic impact on real people, right away. Past shutdowns have disrupted the economy significantly," Obama said.

Consultants Macroeconomic Advisors said it would slow growth, recorded at a 2.5 percent annual pace in the second quarter.

A two-week shutdown would cut 0.3 percentage point off of gross domestic production.

It would also have a painful personal impact on workers affected -- leaving them to dip into savings or delay mortgage payments, monthly car loan bills and other spending.

Stocks on Monday retreated as traders braced for the shutdown. The Dow Jones Industrial Average was down 128.57 points (0.84 percent) to 15,129.67.

Markets are likely to be even more traumatized if there is no quick solution to the next fast approaching crisis.

Republicans are also demanding Obama make concessions in the health care law to secure a lifting of the current $16.7 trillion debt ceiling, without which the United States would begin to default on its debts for the first time in history by the middle of October.

Polls show more Americans would blame Republicans for the shutdown than Democrats, leaving Boehner torn between his party's wider political interests and a vocal section of his own party.

source: interaksyon.com

Obama orders $85-billion spending cuts, blames Republicans

WASHINGTON - President Barack Obama has reluctantly ordered an $85-billion austerity drive that could slow the US economy and slash jobs, after blaming Republicans for refusing to stop the "dumb" spending cuts.

Obama complied with his legal obligations and initiated the automatic, across-the-board cuts in domestic and defense spending Friday, following the failure of efforts to clinch a deal with Republicans on cutting the deficit.

The president signed an order bringing the arbitrary cuts into force, saying they should be made in "strict accordance" to US law, and a report by his Office of Management and Budget (OMB) detailing the cuts to each agency.

The measures could mean long lines at US border posts, reduced military readiness, cuts to special needs education programs, and will trim the resources of some emergency services, according to White House officials.

Obama had earlier blamed the austerity time bomb on Republicans, who refused to close tax loopholes for the rich and corporations combined with more targeted spending cuts, in his "balanced" approach to deficit reduction.

"I am not a dictator. I'm the president," Obama said, warning he could not force his Republican foes to "do the right thing," or make the Secret Service barricade Republicans leaders in a room until a deal is done.

"These cuts will hurt our economy, will cost us jobs and to set it right both sides need to be able to compromise," Obama said, before decrying the budget trimming as "dumb" and "unnecessary."

Only three months after winning re-election, and with the extent of his authority in Washington again constrained, Obama bemoaned his inability to do a "Jedi mind-meld" to get Republicans to change their minds, using imagery from Star Wars and Star Trek.

Obama was bound by law to initiate the automatic, indiscriminate cuts, which could wound the already fragile economy, cost a million jobs and harm military readiness, by the end of Friday.

The hit to military and domestic spending, known as the sequester, was never supposed to happen, but was rather a device seen as so punishing that rival lawmakers would be forced to find a better compromise to cut the deficit.

Both sides agree that the sequester is a blunt instrument to cut spending, as it does not distinguish between essential and wasteful programs -- in what Obama has branded a "meat-cleaver" approach.

New Defense Secretary Chuck Hagel warned that the sequester could endanger the military's capacity to conduct its missions.

"Let me make it clear that this uncertainty puts at risk our ability to effectively all of our missions," said Hagel. The Pentagon's budget is set to be slashed by roughly $46 billion.

The president appeared irritated but combative as he spoke to reporters after meeting with his chief foes -- House Speaker John Boehner and Senate Republican Minority Leader Mitch McConnell -- and allies Democratic Senate Majority Leader Harry Reid and top House Democrat Nancy Pelosi in the Oval Office.

Boehner emerged from the talks to signal to reporters that Republicans would not budge on Obama's key demand for a deal that would raise tax revenues.

"Let's make it clear that the president got his tax hikes on January 1. This discussion about revenue in my view is over," Boehner said.

"It is about taking on the spending problem in Washington."

Even Obama's defeated election rival Mitt Romney got in on the action, slamming the president in a rare interview, complaining he was "blaming and pointing" at Republicans and not leading the country.

In the report to government agencies, the OMB said non-exempt defense programs would be cut by 13 percent this year and domestic programs would be sliced by nine percent.

In cash terms, reductions for the military amount to just over $42 billion, with a similar sum coming from non-defense related spending.

OMB Director Jeffrey Zients told Boehner in a letter accompanying the report that the cuts would be "deeply destructive to national security, domestic investments, and core government functions."

The political stalemate is likely to be prolonged, as the president's tactics are based on a strategy of pinning blame on Republicans for the pain of the sequester, which may take weeks to become evident.

The next point of leverage is likely a bill to fund government operations, which Congress must pass by March 27, or see the government shut down.

Both sides indicated that they would seek to avoid that scenario, meaning that the sequester cuts may remain in place -- unless a way can be found to make equal spending reductions that are less punitive.

Although the cuts trim domestic and defense spending, they do not touch entitlements -- social programs like Medicare health care for the elderly and pension schemes.

Many budget experts say that only cuts to those programs will be able to restore the prospect of long-term fiscal stability.

source: interaksyon.com