President Obama speaks following a meeting with congressional leaders in the Brady Briefing Room of the White House on December 28, 2012 in Washington, DC. Obama met with congressional leaders for talks aimed at avoiding the 'fiscal cliff'(Photo credit Mandel Ngan/AFP/Getty)
David Jackson, USA TODAY
Washington, DC - The White House says it is not
minting a "$1 trillion coin," and it is not negotiating with
congressional Republicans on raising the debt ceiling.
are only two options to deal with the debt limit," said White House
spokesman Jay Carney. "Congress can pay its bills or it can fail to act
and put the nation into default."
Republicans agree with that analysis remains to be seen.
congressional Republicans say they will not support an increase in the
soon-to-expire $16.4 trillion debt ceiling unless there are corresponding cuts
in federal spending.
debt ceiling enables the government to borrow money to pay that debts that have
already been incurred.
issued a statement after the
Treasury Department announced Saturday it
would not seek to get around the debt ceiling by minting a so-called
"trillion-dollar platinum coin" to finance the nation's existing
comments President Obama has made, Carney referenced the 2011 dispute over the
debt ceiling that led to a near-default and a downgrade in the U.S. credit
Congressional Republicans played politics with this issue last time, putting us
at the edge of default, it was a blow to our economic recovery," Carney
president and the American
people won't tolerate Congressional Republicans holding the American economy
hostage again simply so they can force disastrous cuts to Medicare and other
programs the middle class depend on while protecting the wealthy.
needs to do its job."
debt ceiling is one of several budget challenges facing the White House and
Congress in the months ahead.
are still trying to negotiate a long-term debt reduction deal in order to head
off a series of automatic budget cuts set to take effect in early March. This
"sequester" -- affecting popular domestic and defense programs -- was
deferred during the recent "fiscal cliff" deal, which dealt with
on the short term agenda: The March 27 expiration of the continuing resolution
that is funding the government, creating the possibility of another government