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Obama warns no 'magic wand' to quash default fears
by Danielle Levy on Oct 09, 2013 at 08:07
President Barack Obama has warned there is no 'magic wand' that can help to alleviate the threat of a US default
The president said he was 'exploring all contingencies' in the event that Congress failed to increase the country’s borrowing limit.
'No options are good in that scenario,' the Financial Times reported. The president also failed to rule out the possibility the US would prioritise debt payments over other government outlays.
'There is no magic wand that allows us to wish away the chaos that could result if, for the first time in our history, we don’t pay our bills on time,' he added.
Obama repeated his offer to open negotiations with the Republicans on the budget, but only after new government borrowings are approved and the government shutdown halted. The US president said he was also open to a short-term deal to extending the debt ceiling and reopen the government as long as there are no conditions.
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On the road
by Alex Steger on Dec 11, 2013 at 10:19