President Obama said Tuesday his staff is “exploring all contingencies” to avoid a government default, but stressed that Congress can head off economic calamity by simply raising the debt ceiling.
“There is no magic wand that allows us to wish away the chaos that could result if — for the first time in our history — we don’t pay our bills on time,” Obama said during a news conference at the White House.
On the eighth day of a government shutdown, Obama used the traditional forum of a news conference to deliver a familiar message to House Speaker John Boehner and other congressional Republicans: No negotiations until the government is re-opened.
As Republicans insist on delaying parts of his healthcare plan as part of any new spending plan, Obama said that “we can’t make extortion routine as part of our democracy.”
Once the shutdown is over and the debt ceiling is increased, Obama said he would negotiate any budget item with the Republicans, including health care.
House Republican leaders on Tuesday raised the possibility of a new special budget committee, to which Obama said: “I’m prepared to talk about anything. They can design whatever format they want.”
Obama addressed reporters a few hours after delivering the same news to Boehner in a morning phone call.
Information from The Associated Press and USA Today contributed to this report.