The U.S. debt deal sparked relief around the world Thursday, but happiness was tempered by head-shaking that the world’s largest economy had nearly defaulted on its financial obligations, and President Obama said that the United States’ global standing had been damaged.
World leaders and investors have been puzzled for weeks about the showdown paralyzing Washington, and some had complained that U.S. politicians who lay claim to global leadership were doing little to safeguard international finances. On Thursday, officials and newspapers from Beijing to Madrid said the crisis raised fresh questions about the strength of the American political system.
Obama, meanwhile, said that the shutdown had done great harm. “It’s encouraged our enemies,” he said. “It’s emboldened our competitors. And it’s depressed our friends who look to us for steady leadership.”
World markets were largely lower Thursday after having risen earlier this week on expectations that a deal would be made.
Source: The Washington Post – The Washington Post: Around the globe, U.S. debt deal prompts relief, but also exasperation, worry for future
The end of the federal shutdown means boats will be back out on the Bering Sea to fish for king crab. Loggers are being allowed back into national forests in Oregon. And barriers keeping nature lovers out of national parks across the country have been removed.
Crews on about 80 boats have been sitting out the multimillion-dollar harvest of red king crab because federal managers who assign fishing quotas were among workers furloughed during the government’s partial shutdown. They’re relieved that they’ll soon be able to start their harvest, bringing back an industry that was one of many private sectors of the economy stalled around the country by the bickering in Washington.
“I’m glad the madness has ended,” said Capt. Keith Colburn, a regular on Discovery Channel’s popular reality show “Deadliest Catch.”
Source: Associated Press – Associated Press: From Crab Fishers To Office Staff, Nation Reboots
After President Obama signed a cross-party deal in the wee hours of Thursday morning, hundreds of thousands of government workers returned to their jobs Thursday.
The measure reopens the government and funds operations through January 15th.
However, the deal does not include any of the budget issues that have caused the sharpest divisions between Republicans and Democrats in Congress. The lack of resolution to the division is causing continued concern around the world.
“It will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner,” International Monetary Fund head Christine Lagarde said in a statement.
Economists also say the shutdown cost the American economy billions of dollars.
“The U.S. is not doing a very good job at the moment in showing itself to be a model of good governance,” Nicholas Kitchen of the London School of Economics told the BBC.
Furloughed federal employees returned to work Thursday morning after Congress passed a hard-fought deal to end the partial government shutdown and raise the debt ceiling, as barriers went down at federal memorials and national parks re-opened.
The government was returning to normal, for now, after 16 days of a partial shutdown.
Included in the bill signed by President Obama shortly after midnight was a provision to provide back pay for furloughed workers. Many workers received a slimmed-down paycheck this past Friday due to the budget impasse — it’s unclear exactly when that money will be reimbursed. The bill stated it should be paid “as soon as practicable.”
Rep. Jim Moran, R-Va., who represents many federal workers who live in his district, noted thousands of contractors will not be compensated for lost work during the partial shutdown.
Source: FOX News – FOX News: Federal employees return to work, parks re-open
Another last-minute deal struck, another crisis postponed in Washington.
But lawmakers have little time to bask in the temporary relief the bill provides. As furloughed federal employees return to work Thursday, Congress faces another budget deadline three months from now, and a deadline to raise the debt ceiling a few weeks after that.
After the chaos caused by the impasse of the last 16 days, officials are hoping this time to do more than simply meet those deadlines with another pair of stopgap measures.
“We believe there is common ground,” Senate Budget Committee Chairwoman Patty Murray, D-Wash., said Thursday.
Source: FOX News – FOX News: What Now? Obama, Congress face new budget deadlines after stopgap deal
President Obama and his congressional allies succeeded overnight in winning a virtually condition-free increase in the debt ceiling, along with funding to end the partial government shutdown — but in a deal that left America’s debt crisis un-addressed and teed up another battle three months from now.
The president signed the short-term bill early Thursday morning. With his signature, furloughed federal employees will return to work for the first time since Sept. 30. The White House directed all federal agencies to promptly restore staffing to normal levels.
The bill cleared the House late Wednesday on a 285-144 vote, lifted over the finish line by a large chunk of Democrats. All House Democrats voted in favor of the bill and 87 Republicans did as well; 144 Republicans voted against it. The Senate, where the plan originated, earlier voted 81-18 for the bill.
Source: FOX News – FOX News: Obama signs bill ending partial shutdown, raising debt ceiling
President Obama signed a short-term funding bill early Thursday morning that ended the partial government shutdown and raised the country’s debt ceiling.
The bill passed the House Wednesday night 285-144, with 87 Republicans joining all the House Democrats in passing the bill. The Senate, who originated the deal behind the bill, passed it 81-18.
The agreement funds the government through January 15th, raises the debt ceiling through February 7th and provides back-pay for furloughed federal employees. The Republicans were unable to get changes made to Obamacare beyond a provision to verify the income levels of those receiving Obamacare subsidies.
The bill also contained items that seemed unusual in a bill aimed at reopening the government including a nearly $3 billion earmark for a dam construction project in Kentucky.
“Tonight, a deal was struck to re-open the government and avoid the debt ceiling deadline. That is a good thing,” Kentucky Senator Rand Paul said in a statement. “However, our country faces a problem bigger than any deadline: a $17 trillion debt. I am disappointed that Democrats would not compromise to avoid the looming debt debacle.”
Sen. Paul voted against the bill.
Leaders in the U.S. Senate have struck a deal to reopen the government and raise the debt ceiling ahead of Thursday’s historic default.
The bill would extend the debt ceiling through February 7th and fund the government through mid-January. The bill also calls for budget negotiations between both houses of Congress on a long-term spending plan and includes a provision to strengthen verification measures for those seeking government subsidies for Obamacare.
Several Republican house members are reportedly not happy with the deal which does not include a defunding of Obamacare.
“If we’re not willing to take a stand now, then when will we take this stand?” Rep. Steve King of Iowa told CNN this morning.
Stock markets worldwide jumped on news of the impending deal.
A proposal from Republicans in the House of Representatives collapse on Tuesday evening forcing leaders to postponed a scheduled vote.
Sources inside the party said more conservative members were openly against the plan being rushed through by House Speaker John Boehner. The delay increases the chances that Congress would not be able to reach an agreement before Thursday’s debt ceiling limit.
Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell are working together to try and arrange a settlement that would be approved by the Senate. Any deal would need approval by the House and analysts say it’s unlikely the House will immediately approve any Senate proposal.
The Treasury Department said they only have $35 billion on hand to pay bills.
Fitch Ratings has announced a “rating watch negative” notice on the United States’ AAA credit rating because of the government shutdown.
“Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default,” the rating agency said in a statement.
U.S. stock index futures fell on the news but rallied later in the day.
Treasury Department personnel were quick to say the Fitch announcement showed the urgent need for Congress to pass legislation to raise the country’s debt ceiling. The country will hit the debt ceiling on Thursday.
