–President Obama: Still ‘Confident’ Will Pass Debt Hike On Time
–Obama: Boehner Rejected $3 Trillion Deficit Cut Deal
–Obama: Not Sure If the GOP Has ‘Capacity’ To Make Deficit Agreement
–House Speaker Boehner: Also ‘Confident’ Will Be Able To Avoid Default
–Rep. Boehner: Obama Increased Revenue Demand From $800B to $1.2T

By John Shaw

WASHINGTON (MNI) – The U.S.’s debt ceiling crisis appeared to
intensify dramatically Friday when House Speaker John Boehner said he
will withdraw from direct budget talks with President Obama, a move
which led Obama to summon all congressional leaders to the White House
Saturday morning at 11 a.m.

According to the president at a White House briefing Friday
evening, Boehner called Obama at 5:30 p.m. and said he was withdrawing
from budget talks with the White House and would conduct them directly
with Democratic and Republican Senate leaders.

Obama, visibly angry and frustrated, said Boehner had 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, adding that he
now fears that Republicans will oppose virtually any deficit reduction
offer other than ones that only cut spending.

“Can they say yes to anything?,” Obama snapped.

“There doesn’t seem to be a capacity for them to say yes,” Obama
said.

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

“We don’t have an option,” he said.

Speaking about 30 minutes later at a Capitol Hill briefing, Boehner
said he will attend the White House meeting Saturday morning, but said
he believes it’s 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 said 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” that Congress and the White
House can avoid defaulting on Aug. 2.

“I’m convinced we will not default,” Boehner said, adding that he
is not “really interested” in a short-term debt hike.

The Speaker said he continues to “trust him (Obama) as a
negotiator,” but added that “dealing with this White House is like
dealing with a bowl of Jell-O.”

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 **

[TOPICS: M$U$$$,MFU$$$,MCU$$$]