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You are here: Home / Obama digs in heels, refuses to negotiate debt ceiling

Obama digs in heels, refuses to negotiate debt ceiling

President Barack Obama on Monday rejected any negotiations with Republicans over raising the U.S. borrowing limit, accusing his opponents of trying to extract a ransom for not ruining the economy in the latest fiscal fight. At a White House news conference called to promote his position on the budget, Obama vowed not to trade cuts in government spending sought by Republicans in exchange for raising the borrowing limit. “What I will not do is to have that negotiation with a gun at the head of the American people,” he said. With an agreement to prevent the economy falling over a “fiscal cliff” barely two weeks old, Washington has already begun skirmishing over a new fiscal issue: the debt ceiling, which fixes a limit on how much the government can borrow. The United States could default on its debt if Congress does not increase the borrowing limit, a prospect Federal Reserve Chairman Ben Bernanke warned against in separate comments Monday. Obama has tangled repeatedly with Congress over budget and spending issues, and on Monday he said Republicans would bear the responsibility for the consequences of a default. “They can act responsibly, and pay America’s bills or they can act irresponsibly, and…

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