Talks Continue Over Short Term Fiscal Agreement

htrTalks between the Obama and House Republican leaders that began yesterday and extended through the night were unable to produce any short term agreement over raising the debt ceiling limit and re-opening the U.S. government.

The White House described the meeting as a “good meeting” and will continue working on a new agreement today.

In a released statement from the office of House Speaker John Boehner, an optimistic tone was struck about the outcome of the meeting.

“No final decisions were made; however, it was a useful and productive conversation.”

Vice President Joe Biden will work with President Obama today to help forge a short term agreement.

Republicans are pushing to overturn a tax on medical devices that provides some health care subsidies under the Affordable Care Act or Obamacare.

If Republicans are successful in overturning the medical device tax, an alternative revenue stream will need to be created to make up for the loss of subsidies and it may come through pension reforms and lowering government spending.

Republicans hope to use the framework of a 6 week short term agreement to push for longer term fiscal reforms that address the country’s long term debt.

The proposed Republican short term plan would still keep the government shutdown, which remains a major sticking point for Democrats who are fighting hard to re-open the government.

The U.S. government shutdown reached its eleventh day today with over four hundred thousand federal employees still furloughed and many important government agencies unable to function.

Today the market was unable to receive retail sales figures for September due to the government being shutdown.

Latest poll results show that Americans are not happy with the government shutdown and mostly blame Republicans.

A latest poll from NBC News/Wall Street Journal Survey revealed that 53 percent of Americans blamed Republicans versus 31 percent who believed the president was responsible for the fiscal impasse.

Only 21 percent of Americans have a favorable view of the Tea party, the conservative group within the Republican party that has worked to defund or delay Obamacare by passing legislation in the House that links the re-opening of the government and the raising the debt ceiling limit to defunding and delaying Obamacare.

Senate Democrats have already rejected House Republican legislation over the debt-ceiling limit and the re-opening of the government, leading to the current fiscal impasse that could slowly grind to an end soon if a short term agreement is reached.

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