US lawmakers split despite October 17 debt deadline

WASHINGTON DC - The United States is still facing a potentially devastating sovereign debt default, after senators failed to agree on terms to reopen the federal government and raise the country's borrowing limit.

Republicans and Democrats -- at war over the country's finances and ideological direction for more than two weeks -- tried to shed a positive light Sunday on a weekend of talks that despite the threat of global economic censure did not produce a solution.

The Senate convened a rare Sunday session to try and break the budgetary impasse that prompted the government to shut down on October 1, a move that has since damaged domestic confidence and undermined America's reputation as the world's leading economic superpower.

If the US debt ceiling is not raised by October 17, the Treasury would run out of money and could begin defaulting on its obligations for the first time in history, with likely dire consequences for the global economy.

Seeking to avert that outcome, the Democratic leader in the Senate, Harry Reid, talked up the dialogue with Republicans -- represented by top Senator Mitch McConnell -- though nothing concrete was disclosed.

"I'm optimistic about the prospect for a positive conclusion," Reid said.

US Treasury Secretary Jacob Lew has told the International Monetary Fund's policy steering committee that Washington understood its reputation as a safe harbor was at risk.

Stock markets are already factoring in a possible default if no deal is reached between President Barack Obama, his Democratic Party and rival Republicans by Thursday night.

But the threat of a global economic rebuke has so far done little to prompt an agreement.

Polls released during the shutdown have shown Congress's approval rating at record lows, with Republicans blamed most for the political gridlock in Washington.

Both parties in recent days indicated a deal must be done at all costs, despite the bitter bipartisan rancor.

"This is something that's wreaking havoc around the world and will affect economic growth, and I do hope that over the next week we'll reach a conclusion and I think we will," Republican Senator Bob Corker told "Fox News Sunday."

Obama rejected an offer by Republicans in the House of Representatives to lift the debt ceiling for six weeks while negotiations would continue on reopening the government, insisting on a longer-term solution.

Following talks with the top House Democrat, Nancy Pelosi, the president said they were not budging from their position.

Obama and Pelosi "reinforced that there must be a clean debt limit increase that allows us to pay the bills we have incurred and avoid default," the White House said in a statement.

"The House needs to pass the clean continuing resolution to open up the government and end the shutdown that is hurting middle class families and businesses across the country."

Senate leader Reid had on Saturday turned down a second compromise proposal, offered by moderate Republican Senator Susan Collins.

It called for lifting the US debt limit for up to a year, reopening the government and repealing a tax on medical devices under Obama's signature health care law.

But Collins said her proposal could still become the basis of a deal, telling CNN's "State of the Union" she had support from a growing, bipartisan group of senators.

Senator Charles Schumer, a key Democratic power broker, said Reid and McConnell "were not that far apart" Saturday, when they held their first talks of the crisis.

"I'm cautiously hopeful, optimistic, that we can come to an agreement and open up the government and avoid default based on the bipartisan meetings that are going on," Schumer told CBS's "Face the Nation."

Democrats, meanwhile, have added a demand of their own -- that any deal also involve undoing the across-the-board spending cuts known as the sequester that went into effect earlier this year.

Schumer acknowledged it was a "sticking point."

Corker said House Republicans had gone too far in demanding that Obama's signature health care law be defunded, the initial cause of the government shutdown.

But "now the Democrats are on the verge of being one tick too cute," he said, referring to the bid to undo the sequester.

Global pressure for a deal in Washington is mounting.

"The standing of the US economy would, again, be at risk," International Monetary Fund chief Christine Lagarde said on NBC's "Meet the Press," comparing the effects of failing to raise the debt ceiling and reopening the government to the 2008 global financial meltdown.

source: interaksyon.com

US lawmakers move to rein in NSA snooping

WASHINGTON -- Democratic and Republican US senators introduced legislation on Wednesday to end the National Security Agency's bulk collection of Americans' communication records and set other new controls on the government's electronic eavesdropping programs.

The measure introduced by Democrats Ron Wyden, Mark Udall and Richard Blumenthal, and Republican Rand Paul, is one of several efforts making their way through Congress to rein in sweeping surveillance programs.

The Senate Intelligence Committee is holding a public hearing on Thursday when the panel's leaders are expected to discuss their surveillance reforms, the Senate Judiciary Committee is addressing the issue and several members of the House of Representatives have also introduced legislation.

"The disclosures over the last 100 days have caused a sea change in the way the public views the surveillance system," said Wyden, a leading congressional advocate for tighter privacy controls, told a news conference.

The surveillance programs have come under intense scrutiny since disclosures this spring by former National Security Agency contractor Edward Snowden that the government collects far more Internet and telephone data than previously known.

The legislation introduced on Wednesday combines several surveillance reforms that legislators had introduced separately.

Besides banning the bulk collection of Americans' records, it would create the position of "constitutional advocate" to represent the public in the secret Foreign Intelligence Surveillance Court that oversees the eavesdropping programs.

And it would let Americans affected by the eavesdropping sue for damages in US courts and allow companies to disclose more information about cooperation with government surveillance.

"These reforms are the right thing to do, but they are also essential to the public believing that the system is complying with the law," Blumenthal said.

Many members of Congress staunchly defend the surveillance programs as an essential defense against terrorist attacks, but support for change has been growing.

In a 217-205 vote in July, the House narrowly defeated an amendment to an appropriations bill that would have sharply limited the NSA's ability to collect electronic information.

The strong support for the amendment -- bolstered by an unlikely alliance of liberal Democrats and libertarian Republicans -- surprised many congressional observers because House leaders and members of the Intelligence Committee had strongly opposed it.

Given the level of dissent - and widespread public concern - lawmakers said they expected some reforms would be included in the National Defense Authorization Act, which Congress is due to pass late this year to authorize Defense Department programs.

source: interaksyon.com