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| Version 3 | Version 4 |
|---|---|
| White House meeting ends with no deal on budget cuts | White House meeting ends with no deal on budget cuts |
| (about 2 hours later) | |
| US political leaders have left last-ditch talks at the White House without a deal to avoid steep budget cuts. | US political leaders have left last-ditch talks at the White House without a deal to avoid steep budget cuts. |
| President Barack Obama blamed Republicans' refusal to allow any tax rises for the negotiations' failure, calling the sweeping $85bn (£56bn) in cuts "unnecessary" and "inexcusable". | President Barack Obama blamed Republicans' refusal to allow any tax rises for the negotiations' failure, calling the sweeping $85bn (£56bn) in cuts "unnecessary" and "inexcusable". |
| With Congress adjourned for the weekend, the cuts are due to be written into the budget by the end of Friday. | |
| The IMF has warned the cuts could slow global economic growth. | The IMF has warned the cuts could slow global economic growth. |
| Analysis in the US suggests the nation's economic output, or Gross Domestic Product (GDP), could grow by just 1.4% in 2013 if the cuts are not delayed or replaced. US GDP grew by 2.2% in 2012. | Analysis in the US suggests the nation's economic output, or Gross Domestic Product (GDP), could grow by just 1.4% in 2013 if the cuts are not delayed or replaced. US GDP grew by 2.2% in 2012. |
| Mr Obama warned the economy would suffer because Congress had not managed to reach a deal. | Mr Obama warned the economy would suffer because Congress had not managed to reach a deal. |
| "We shouldn't be making a series of dumb, arbitrary cuts to things that businesses depend on and workers depend on," he said after Friday's meeting. | "We shouldn't be making a series of dumb, arbitrary cuts to things that businesses depend on and workers depend on," he said after Friday's meeting. |
| "Not everyone will feel the pain of these cuts right away. The pain, though, will be real." | "Not everyone will feel the pain of these cuts right away. The pain, though, will be real." |
| The US president attacked congressional Republicans for "refusing to budge" on closing any tax loopholes, arguing they were protecting tax breaks for the "well-off and well-connected". | The US president attacked congressional Republicans for "refusing to budge" on closing any tax loopholes, arguing they were protecting tax breaks for the "well-off and well-connected". |
| Mr Obama said he believed a sufficient number of lawmakers were willing to make a deal, even if their leaders were not. | Mr Obama said he believed a sufficient number of lawmakers were willing to make a deal, even if their leaders were not. |
| "There's a caucus of common sense," he said. "It's just a silent group right now." | "There's a caucus of common sense," he said. "It's just a silent group right now." |
| 'Spending problem' | 'Spending problem' |
| Republican House Speaker John Boehner, meanwhile, reiterated his party's refusal to allow taxes to rise and challenged the gridlocked US Senate to pass a bill first before the House acted on a plan. | Republican House Speaker John Boehner, meanwhile, reiterated his party's refusal to allow taxes to rise and challenged the gridlocked US Senate to pass a bill first before the House acted on a plan. |
| "The American people know that Washington has a spending problem," Mr Boehner said as he left the White House on Friday. | "The American people know that Washington has a spending problem," Mr Boehner said as he left the White House on Friday. |
| "Let's make it clear that the president got his tax hikes on 1 January. The discussion about revenue, in my view, is over. It's about taking on the spending problem." | "Let's make it clear that the president got his tax hikes on 1 January. The discussion about revenue, in my view, is over. It's about taking on the spending problem." |
| The BBC's Mark Mardell in Washington says the cuts are meant to hurt - they were deliberately designed two years ago to be so brutally painful that politicians of left and right would be forced to agree on a better way of balancing the books. | The BBC's Mark Mardell in Washington says the cuts are meant to hurt - they were deliberately designed two years ago to be so brutally painful that politicians of left and right would be forced to agree on a better way of balancing the books. |
| The cuts are split roughly evenly between military and domestic programmes, but effects will be felt over time rather than immediately. | The cuts are split roughly evenly between military and domestic programmes, but effects will be felt over time rather than immediately. |
| Budget bills from both parties were defeated in the Senate on Thursday. | Budget bills from both parties were defeated in the Senate on Thursday. |
| Next budget battle | Next budget battle |
| A Democratic plan proposing nearly $30bn in future cuts in defence spending and a minimum tax rate on incomes exceeding $1m, was blocked by Republicans. | A Democratic plan proposing nearly $30bn in future cuts in defence spending and a minimum tax rate on incomes exceeding $1m, was blocked by Republicans. |
| Mr Obama inadvertently offered the beleaguered Washington press corps a moment of levity on Friday. | Mr Obama inadvertently offered the beleaguered Washington press corps a moment of levity on Friday. |
| Mocking the Washington "conventional wisdom" that he had the power to force Republicans to negotiate, he said: | Mocking the Washington "conventional wisdom" that he had the power to force Republicans to negotiate, he said: |
| "Most people agree I'm presenting a fair deal. The fact that they don't take it means that I should somehow, you know, do a Jedi mind meld with these folks and convince them to do what's right." | "Most people agree I'm presenting a fair deal. The fact that they don't take it means that I should somehow, you know, do a Jedi mind meld with these folks and convince them to do what's right." |
| Washington wags quickly noted Mr Obama had violated the prime directive of nerddom, conflating Star Wars and Star Trek: Jedis have a "mind trick", while Star Trek Vulcans employ a "mind meld". | Washington wags quickly noted Mr Obama had violated the prime directive of nerddom, conflating Star Wars and Star Trek: Jedis have a "mind trick", while Star Trek Vulcans employ a "mind meld". |
| Although Republicans and Democrats both say they want to reduce the budget deficit, estimated at $845bn this year, the president has accused Senate Republicans of allowing the cuts to proceed. | Although Republicans and Democrats both say they want to reduce the budget deficit, estimated at $845bn this year, the president has accused Senate Republicans of allowing the cuts to proceed. |
| But Republicans contend that the president and his advisers created and proposed the idea of the cuts during budget negotiations in 2011. | But Republicans contend that the president and his advisers created and proposed the idea of the cuts during budget negotiations in 2011. |
| The cuts are scheduled to be signed into the federal budget by President Obama by 23:59 local time on Friday (04:59 GMT on Saturday). | The cuts are scheduled to be signed into the federal budget by President Obama by 23:59 local time on Friday (04:59 GMT on Saturday). |
| But now attention will also turn to the next congressional challenge - a possible shutdown of the US government if no funding bill is passed in the next month. | But now attention will also turn to the next congressional challenge - a possible shutdown of the US government if no funding bill is passed in the next month. |
| On 27 March a temporary federal budget that has kept the federal government running since 2012 is due to expire. | On 27 March a temporary federal budget that has kept the federal government running since 2012 is due to expire. |
| House Republicans have said they will vote on a bill next week to fund the government through the end of the fiscal year, on 30 September, but keep in place some automatic cuts taking effect on Friday. | House Republicans have said they will vote on a bill next week to fund the government through the end of the fiscal year, on 30 September, but keep in place some automatic cuts taking effect on Friday. |
| Are you in the US? How will you be affected by the budget cuts? Send us your comments using the form below. | Are you in the US? How will you be affected by the budget cuts? Send us your comments using the form below. |