–Obama Met Sat With Reps. Boehner, Pelosi, & Sens Reid, McConnell
–Speaker Boehner Says Hill Will Find ‘Responsible Path Forward’
–Boehner: ‘Bipartisan Solution’ Must Cut Spending, Hike Debt Ceiling
–White House Repeats Opposition To Short-Term Debt Hike

By John Shaw

WASHINGTON (MNI) – President Obama met Saturday with the four top
congressional leaders in an attempt to end the impasse on the debt
ceiling, but the meeting confirmed House Speaker John Boehner’s decision
to try to craft a bill on Capitol Hill to end the budget stand off.

In a statement, Boehner said that congressional leaders must find a
“responsible path forward.”

He said House and Senate leaders will be working on a “bipartisan
solution to significantly reduce Washington spending and preserve the
full faith and credit of the United States.”

The White House issued a statement saying the meeting between Obama
and Boehner, Senate Majority Leader Harry Reid, Senate Minority Leader
Mitch McConnell and House Minority Leader Nancy Pelosi lasted about an
hour.

The White House said Obama repeated his opposition to a short-term
debt ceiling extension because it “could cause our country’s credit
rating to be downgraded.”

The White House said it is necessary to find a way to ensure “the
United States does not default on its obligations for the first time in
its history.”

The White House said it would “irresponsbile to put our country and
economy at risk again in just a few short months with another battle
over raising the debt ceiling.”

“Congress should refrain from playing political games with our
economy,” the White House warned.

The White House said it expects congressional leaders to work with
their members to find a way to resolve the impasse.

The shift of action back to Capitol Hill comes after talks between
Obama and Boehner collapsed Friday when the Speaker withdrew from the
negotiations.

According to the president, Boehner informed him Friday that he was
withdrawing from budget talks with the White House and would conduct
them directly with Democratic and Republican leaders in the House and
Senate.

Obama said Boehner rejected a more than $3 trillion White House
offer to cut budget deficits and increase the debt ceiling.

Obama said his offer included about $1 trillion in discretionary
savings, $650 billion in entitlement savings and $1.2 trillion in
additional revenues.

“It was an extraordinarily fair deal,” Obama said.

Obama said he was “confident” the nation will increase the debt
ceiling by August 2 and avoid default.

Boehner, in a separate briefing Friday evening, said he believes it
will be more productive for congressional leaders to negotiate directly
on the debt ceiling and deficit reduction.

Boehner said the White House “moved the goal post” during the
negotiations. He charged that Obama originally agreed to an $800
billion increase in revenue, but then raised the number to $1.2
trillion.

“They refuse to get serious about spending,” he added.

Boehner also said he is “confident” Congress and the White House
can avoid defaulting on Aug. 2.

The U.S. has already reached its $14.29 trillion debt ceiling.
Treasury Secretary Tim Geithner has said that Congress must pass
legislation increasing the debt ceiling by August 2.

** Market News International Washington Bureau: (202) 371-2121 **

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