U.S. President Obama has said he is willing to hold budget talks with republicans, but not until they agree to lift “threats” against the economy.

Oct 10, 2013| Courtesy by : ptvworldnews.com.pk

world1Obama said they were committing “extortion” by demanding policy concessions in return for raising the US debt limit and reopening government.

The U.S. Government shut down last week when congress failed to agree a budget. Republican leaders have reiterated calls for President Obama to open negotiations over ending the impasses.

Republican house speaker John Boehner told reporters he was “disappointed that the president refuses to negotiate”.

At the white house, President Obama said he had spoken to Mr Boehner and was “happy to talk with him and other republicans about anything”.

But Obama said any negotiations on the ongoing government shutdown or the debt limit “shouldn’t require hanging the threats of a shutdown or economic chaos over the heads of the American people”.

“if reasonable republicans want to talk about these things again, i’m ready to head up to the hill and try. I’ll even spring for dinner again. But i’m not going to do it until the more extreme parts of the republican party stop forcing John Boehner to issue threats about our economy. We can’t make extortion routine as part of our democracy.”

Mr Obama said he understood why it was difficult for republicans to vote to lift the debt ceiling –

He also warned of the repercussions of defaulting on the government’s debt, should congress fail to raise the borrowing limit, currently set to be reached on 17 October.

Mr Obama said breaching the borrowing limit could disrupt capital markets, undermine international confidence in America, permanently increase the nation’s borrowing costs, add to its deficits and debt, and pose the “significant risk of a very deep recession”.