Debt deal on a knife edge as US politicians feud

US seems to be edging towards financial default after feuding Republicans and Democrats fail to agree on budget deal.

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washington // The United States seemed to be edging towards a financial default last night after feuding Republicans and Democrats again failed to agree on a budget deal to end a two-week government shutdown and raise the amount the country can borrow.

Just as talks in the Senate showed progress, Republicans in the lower house proposed legislation that was immediately rejected by the White House because it weakened Barack Obama’s flagship healthcare law.

“Extremist Republicans … are attempting to torpedo the Senate’s bipartisan progress,” said leading Democrat Harry Reid.“There have been no decisions about what exactly we will do,” Republican leader John Boehner said. The US Treasury has warned that without a deal to raise the debt ceiling the US could run out of money tomorrow.

* Agence France-Presse