Obama warns of 'economic shutdown' as debt deadline approaches

Faced with the looming prospect of a debt default, President Barack Obama today appealed to Congress to pass the budget while pushing Republicans to agree to hike the borrowing limit to prevent an "economic shutdown".
"Let's pass a budget, put people back to work, and end this Republican shutdown. Let's pay our bills, and prevent an economic shutdown," Obama said as the government shutdown entered its twelfth day.
In his weekly address to the nation, Obama outlined details of his meetings with Republican lawmakers over the past few days to resolve the unprecedented crisis.
"I know you're frustrated by what you see in your nation's capital right now. But because it's easy to get lost in or give up on the political back-and-forth, I want you to remember: this is not normal," he said.

Meanwhile, the Republicans today met behind closed doors on Capitol Hill and House Speaker John Boehner told fellow Republicans that his talks with Obama have stalled.
The Senate also rejected a Democratic effort to extend the government's ability to borrow money through next year. It was a near party-line vote 53-45 that derailed the Democratic measure.

The focus today abruptly shifted to the Senate, where Republicans were claiming "significant progress" towards a possible solution to the crisis.
Senate Democratic Party leader Harry Reid and top Senate Republican Mitch McConnell entered into face-to-face talks on outstanding issues.
"The real conversation that matters now is the one that's taking place between McConnell and Reid," Senator Bob Corker told reporters. Reid downplayed hopes of a quick resolution of issues.

The battle between Obama and Republicans, who control the House of Representatives, over the flagship healthcare plan dubbed 'Obamacare' has forced the government to shutter offices and send home hundreds of thousands of workers.
Alongside the shutdown, the US is heading for a debt default if it does not raise its debt limit by the October 17 deadline.
Republicans had this week suggested a six-week extension to US borrowing authority, but Obama today said he wanted a long-term deal.
"It wouldn't be wise, as some suggest, to just kick the debt ceiling can down the road for a couple of months, and flirt with a first-ever intentional default right in the middle of the holiday shopping season," Obama said.