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We won’t calm foreign creditors until there’s a debt ceiling resolution: Obama

CNBC.com with wires
Tuesday, 8 Oct 2013 | 3:21 PM ET
Obama: No 'ransom' for doing your job
Tuesday, 8 Oct 2013 | 2:14 PM ET
President Obama says he is willing to talk to Republicans but not with the threat of a government shutdown or default hanging over his head. Regular Americans "don't get to demand a ransom for doing their jobs" and neither should the Congress, he argued.

U.S. President Barack Obama renewed his call for Congress to end the partial government shutdown on Tuesday, demanding that House Republicans "end their obsession" with his signature health-care law and vote to re-open the government.

Obama said he was willing to "sit down and talk about anything" with his opponents. However, he insisted the GOP was "threatening to crash the global economy" by leaving the government shuttered for an eighth consecutive day.

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Obama: Won't calm creditors until stalement ends
President Obama says even though he continues to reassure foreign creditors that the U.S. pays its bills, their fears won't be calmed until House Republicans agree to raise the debt ceiling.

"We can't make extortion routine as a part of our democracy — democracy doesn't function this way," Obama added.

He warned that a U.S. debt default could wreak havoc and said he would talk to congressional Republicans about any topic but urged them to raise the debt limit without conditions.

If Republicans are serious about wanting to negotiate, there's no reason to have threat of default looming over these conversations, Obama added.

(Read More: CNBC Explains the debt ceiling)

Obama: No magic bullets here
President Obama addresses the negotiations in Washington. In regards to the vote on the continuing resolution, and the debt ceiling, he says "let them vote, and let every member of Congress be on record."

Obama said he told House Speaker John Boehner in a phone call that he would not hold talks under the threat of a debt default or of keeping the government shut.

He remains hopeful that Congress will not put his administration in the position of having to consider prioritizing debt payments in the event of a federal debt default. The U.S. has a lot of debt obligations beyond paying its Treasury bond holders and that the government's failure to pay other bills would also hurt U.S. creditworthiness, Obama said.

"What people ignore is ultimately what are the people who are buying Treasury bills think?" he added.

Kudlow sees 'wiggle room' in Obama comments
CNBC's Larry Kudlow and Eamon Javers provide immediate reaction to President Obama's statements on the government shutdown and debt ceiling battle.

Earlier on Tuesday, House Speaker John Boehner said he was "not drawing any lines in the sand" and was willing to negotiate with the president.

Later, a Boehner aide said the speaker and the president had talked by phone, with Obama reportedly insisting he would not negotiate on the debt ceiling or the shutdown.

Republicans have said they want changes to Obama's signature health care law in exchange for reopening the government.

They have also said they want spending cuts in exchange for raising the debt limit.

—CNBC.com With Wires

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