Fiscal Cliff-Hanger: No Vote Tonight, Reid Says













With less than two days remaining for Congress to reach a budget agreement that would avoid the so-called "fiscal cliff," a senior White House official tells ABC News that President Obama is still "modestly optimistic" that a deal can be struck to prevent middle class taxes from increasing on New Year's Day.


But a resolution to the ordeal won't come tonight.


Senate Majority Leader Harry Reid adjourned his chamber just before 6 p.m., ensuring a potential deal could not be voted on before senators return to business Monday morning.


The Nevada lawmaker vowed despite the recess, the parties' leadership would continue negotiations throughout the night.


Vice President Biden has now re-emerged as a key player, back in Washington and playing "a direct role" in trying to make a deal with Senate Republicans. Biden has been tapped because of his long-standing relationship with Senate Republican Leader Mitch McConnell.


A Democratic source says that McConnell seems to be genuinely interested in getting an agreement. The news dovetails with reports that the GOP has backed off a key Social Security measure that had stalled negotiations.


According to sources, the row was sparked when the GOP offered a proposal that included a new method of calculating entitlement benefits with inflation. Called the "chained consumer price index," or Chained CPI, the strategy has been criticized by some Democrats because it would lower cost of living increases for Social Security recipients.


"We thought it was mutually understood that it was off the table for a scaled-back deal," a Democratic aide said. "It's basically a poison pill."


Obama has floated chained CPI in the past as part of a grand bargain, despite opposition from the AARP and within his own party.


Also in the Republican plan brought today: An extension of the current estate tax and no increase in the debt ceiling. Higher income earners would see their taxes increase, but at levels "well above $250,000," the sources said.


That "major setback" in the talks was evident on the floor of the Senate this afternoon.


"I'm concerned about the lack of urgency here, I think we all know we are running out of time," McConnell said, "I want everyone to know I am willing to get this done, but I need a dance partner."


McConnell, R-Ky., said he submitted the Republican's latest offer to Reid, D-Nev., at 7:10 p.m. Saturday and was willing to work through the night. Reid promised to get back to him at 10 this morning, but has yet to do so.


Why have the Democrats not come up with a counteroffer? Reid admitted it himself moments later.


"At this stage we're not able to make a counteroffer," Reid said noting that he's had numerous conversations with Obama, but the two parties are still far apart on some big issues, "I don't have a counteroffer to make. Perhaps as the day wears on I will be able to."


McConnell said he believes there is no major issue that is the sticking point but rather, "the sticking point appears to be a willingness, an interest, or frankly the courage to close the deal."






J. Scott Applewhite/AP Photo











Sens. Charles Schumer and Jon Kyl on 'This Week' Watch Video











Fiscal Cliff Negotiations: Could Economy Slip Back into Recession? Watch Video





Reid said late this afternoon that the fiscal cliff negotiations were getting "real close" to falling apart completely.


"At some point in the negotiating process, it appears that there are things that stop us from moving forward," he said. "I hope we're not there but we're getting real close and that's why I still hold out hope that we can get something done. But I'm not overly optimistic but I am cautiously optimistic that we can get something done."


Reid said there were serious difference between the two sides, starting with Social Security. He said Democrats are not willing to cut Social Security benefits as part of a smaller, short-term agreement, as was proposed in the latest Republican proposal.


"We're not going to have any Social Security cuts. At this stage it just doesn't seem appropriate," he said. "We're open to discussion about entitlement reforms, but we're going to have to take a different direction. The present status will not work."


Reid said that even 36 hours before the country could go over the cliff, he remains "hopeful" but "realistic," about the prospects of reaching an agreement.


"The other side is intentionally demanding concessions they know we are not willing to make," he said.


The two parties were met separately at 3 p.m., and before going in Reid said he hoped there would be an announcement to make on a way forward afterwards. But as of this evening there was no agreement and no counterproposal.


McConnell said earlier today he placed a call to Vice President Biden to see if he could "jump start the negotiations on his side."


In an interview aired this morning -- well before the breakdown -- Obama suggested that a smaller deal remained the best hope to avoid the perilous package of spending cuts and tax increases.


On NBC's "Meet the Press" the president said if Republicans agreed to raising taxes on top income earners it should be enough to avoid the triggers that would execute the $607 billion measure. Economists agree that going over the cliff would likely put the country back in recession.


"If we have raised some revenue by the wealthy paying a little bit more, that would be sufficient to turn off what's called the sequester, these automatic spending cuts, and that also would have a better outcome for our economy long-term," he said.


Saying the "pressure is on Congress to produce," the president did not specify what income level his party would deem acceptable as the cutoff for those who would see their tax rates remain at current levels.


The president has called for expiration of the "Bush-era" tax cuts to affect household earnings over $250,000 since the campaign, but has reportedly floated a $400,000 figure in past negotiations.


House Speaker John Boehner once offered a $1 million cut-off in his failed "Plan B" proposal, which failed to garner enough support among the House Republicans.


"It's been very hard for Speaker Boehner and Republican Leader McConnell to accept the fact that taxes on the wealthiest Americans should go up a little bit as part of an overall deficit reduction package," the president said.


Domestic programs would lose $55 billion in funding should sequestration pass, including $2 billion to Medicare and unemployment benefits. The Pentagon would take a $55 billion loss as well, or 9 percent of its budget.


Repeating remarks he made Friday after a meeting with congressional leaders,
Obama said that should negotiations fail he has asked Reid to introduce a stripped-down proposal to Congress for a straight up-or-down vote -- if it isn't blocked.


"If all else fails, if Republicans do in fact decide to block so that taxes on the middle class do in fact go up on Jan. 1, then we'll come back with a new Congress on Jan. 4, and the first bill that will be introduced on the floor will be to cut taxes on middle-class families," he said of the worst-case scenario. "I don't think the average person is going to say, 'Gosh, you know, that's a really partisan agenda.'"


The interview with the president was taped Saturday while Reid and McConnell scrambled to their offices for a solution behind closed doors. Press staking out Capitol Hill reported little public activity from the leaders or their surrogates. If negotiations are successful, the lawmakers could introduce a bill for vote this afternoon.


The Republican leaders immediately bit back at the president's remarks. In a written statement Boehner said casting blame was "ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party. "






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Yen rebounds slightly against dollar






NEW YORK: The yen edged higher against the dollar Friday after days of declines on expectations Japan would implement more monetary easing under its new prime minister.

The dollar stood at 85.98 yen around 2200 GMT, down from 86.09 late Thursday.

In Asian trade earlier in the day, the yen sat at more than two-year lows against the greenback.

Investors have been selling the yen on expectations newly-elected Prime Minister Shinzo Abe will carry out his promises of more aggressive monetary easing and big government spending to lift inflation and kickstart the economy.

While noting that Abe and members of his government have "made it abundantly clear" that they won't back away from their promises, BK Asset Management noted that "dollar/yen appears to be nearing exhaustion and a move down to 85 is likely."

"After climbing to a fresh 2-year high overnight, dollar/yen staged a sharp intraday reversal that left the pair near the day's lows," they said.

The euro also slipped slightly against the yen around 2200 GMT, reaching 113.62 yen around 2200 GMT, compared to 113.97 yen a day earlier.

The common European currency lost a little ground to the dollar, standing at $1.3217 after hitting $1.3235 late Thursday.

In other currencies, the dollar inched up to 0.9134 Swiss francs, while the pound rose to $1.6167.

-AFP/ac



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Centre won’t encroach upon states' rights on water, PM says

NEW DELHI: The National Water Resources Council (NWRC) on Friday approved the new National Water Policy in its meeting here after Prime Minister Manmohan Singh assured states that the Centre did not intend to encroach upon the constitutional rights or to centralize the regulation over water resources.

The new policy envisages a National Framework law for water resources that will set general principles of water management under which the Centre, states and local authorities would be required to regulate both surface and groundwater.

The policy sets the tone for creating a tariff mechanism for all kind of water uses in the country, a politically-sensitive move if it is implemented. It also requires a change in existing laws to turn groundwater into a community resource, and not a private right as it currently exists.

"The central government, I repeat, does not wish to encroach, in any manner, upon the constitutionally guaranteed rights of states or to centralize water management," the PM said.

The strong statements, demands and sentiments expressed at the meeting made it abundant that an issue that has most often remained on political backburners — save perhaps when it comes to riparian rights of states — is set to boil over into a serious governance concern.

The policy was adopted by the Council meeting attended by several CMs and state water resource ministers who also put forth their concerns. The policy pushes for differential pricing of water — the need for which was flagged earlier in the day by Union water resources minister Harish Rawat.

He also warned that India would need around 450 billion cubic metres (BCM) of water storage in the country by 2050 to meet the requirements of various sectors. Now, India has only 253 BCM storage capacity.

The Centre will amend the policy, tweaking it to address the worries expressed by state governments. "The policy will not be re-drafted. Some modifications will be made to address the states' concerns," Rawat said after the meeting.

The policy requires the state governments to set up a Water Regulatory Authority (WRA), which aided by technical experts, would subsequently impose and regulate water tariff charges.

The policy could lead to dramatic changes in the way groundwater resources are controlled. TOI had reported earlier on the move to change existing norms and do away with private ownership of groundwater which allows individuals to dig a well almost at will and draw out unregulated levels of water. The new policy seeks for these laws and regulations to be altered suitably.

Times View

It is about time we had a water policy that takes a comprehensive view of how to utilise this precious natural resource. The importance of efficiently using water has been repeatedly underscored by several global experts who have predicted that if ever there is another World War it is likely to be a fight over water resources. For far too long, we have treated it as if it were a limitless resource. That has to stop. The policy must, therefore, focus on how ensure maximum efficiency in water utilisation. At the same time, it must ensure that there is an equitable distribution of water. Meeting both goals would require a combination of market and non-market driven incentives. Getting that combination right is the key.

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How to Banish That New Year's Eve Hangover


For those of us who enjoy the occasional cocktail, the holiday season would be incomplete without certain treats of the liquid variety. Some look forward to the creamy charms of rum-laced eggnog; others anticipate cupfuls of high-octane punch or mugs of warm, spiced wine.

No matter what's in your glass, raising one as the year winds down is tradition. What could be more festive? The problem is, one drink leads to two, then the party gets going and a third is generously poured. Soon, the music fades and the morning arrives—and with it, the dreaded hangover. (Explore a human-body interactive.)

Whether it's a pounding headache, a queasy stomach, sweating, or just general misery, the damage has been done. So now it's time to remedy the situation. What's the quickest way to banish the pain? It depends who you ask.

Doctors typically recommend water for hydration and ibuprofen to reduce inflammation. Taking B vitamins is also good, according to anesthesiologist Jason Burke, because they help the body metabolize alcohol and produce energy.

Burke should know a thing or two about veisalgia, the medical term for hangover. At his Las Vegas clinic Hangover Heaven, Burke treats thousands of people suffering from the effects of drinking to excess with hydrating fluids and medications approved by the U.S. Food and Drug Administration.

"No two hangovers are the same," he said, adding that the unfavorable condition costs society billions of dollars-mostly from lost productivity and people taking sick days from work.

Hot Peppers for Hangovers?

So what's the advice from the nonmedical community? Suggestions range from greasy breakfasts to vanilla milkshakes to spending time in a steamy sauna. A friend insists hot peppers are the only way to combat a hangover's wrath. Another swears by the palliative effects of a bloody mary. In fact, many people just have another drink, following the old "hair of the dog that bit you" strategy.

Whether such "cures" actually get rid of a hangover is debatable, but one thing's for sure: the sorry state is universal. The only people immune to hangovers are the ones who avoid alcohol altogether.

So for those who do indulge, even if it's just once in awhile, see our interactive featuring cures from around the world (also above). As New Year's Eve looms with its attendant excuse to imbibe, perhaps it would be wise to stock your refrigerator with one of these antidotes. Pickled herring, anyone?


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'Cliff' Summit Brings Hope for a Deal













Washington brinkmanship appears to have created a last minute chance for the White House and Congress to agree on a plan to avoid sending the country over the fiscal cliff.


President Obama emerged from a White House summit this evening to say "we had a constructive meeting today" and that he was "optimistic" that they could devise a proposal ahead of a Jan. 1 deadline that would otherwise automatically trigger a wide range of higher taxes and steep budget cuts. Economists fear that such a combination could throw the country into a recession.


The president lamented that a deal is coming down to the final hours.


"The American people are watching what we do... (their) patience is already thin," the president said. "It's deja vu all over again."


He added later that for Americans the repeated last second efforts to dodge economic crises "is mind boggling to them. It has to stop."


After leaving the summit, the Senate Democratic and Republican leaders announced on the Senate floor that they're aiming to have a proposal on the fiscal cliff drawn up by Sunday, with the potential to put it on the Senate floor that afternoon.






Mandel Ngan/AFP/Getty Images











Sen. Harry Reid Says 'US Headed Over Fiscal Cliff' Watch Video









Fiscal Cliff: Congressional Leaders Squabble at the Last Minute Watch Video







"We had a good meeting down at the White House," Sen. Mitch McConnell, R-Ky., said. "We are engaged in discussions, the majority leader, myself and the White House in the hopes that we can come forward as early as Sunday and have a recommendation that I can make to my conference and the majority leader can make to his conference."


McConnell said that he is "hopeful and optimistic" and they'll be "working hard" over the next 24 hours "to see if we can get there."


Majority Leader Harry Reid, D-Nev., echoed those sentiments.


"We certainly hope something will come from that," Reid said of today's White House meeting. "The Republican leader and I and our staffs are working to see what we can come up with. We shouldn't take a long time to do that."


The Senate will come in at 1 p.m. on Sunday. There will be a caucus meeting in the afternoon. Reid says he hopes by that time on Sunday there will be a determination if a proposal can be brought to the floor.


"There was not a lot of hilarity in the meeting. Everyone knows how important it is, it was a very serious meeting," Reid said on today's White House meeting.


Reid warned that whatever they come up with it will be "imperfect."


"Some people aren't going to like it," Reid said. "Some people will like it less but that's where we are. And I feel confident that we have an obligation to do the best we can, and that was made very clear at the White House."



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Egypt's Mubarak back in hospital as health worsens






CAIRO: Egypt's state prosecutor on Thursday ordered imprisoned former dictator Hosni Mubarak transferred to a military hospital after his health deteriorated, a source at the prosecutor's office said.

Mubarak, serving a life sentence over the killings of protesters, was briefly taken to hospital on December 19 for scans after he fell in his prison bathroom and hurt his head.

Mubarak, 84, will be returned to prison after he is treated, the source said.

A court sentenced the veteran strongman to life in June for failing to prevent the killings of protesters during the 18-day revolt that ended his three-decade rule in February 2011. Some 850 people died in the uprising.

Since his fall from power, Mubarak's health has appeared to deteriorate significantly, and he has suffered repeated health scares.

He spent nearly a month in hospital after he fell unconscious on June 19, with state media declaring him clinically dead on arrival. Medical sources however said he appeared to have fallen into a temporary coma.

During his time in power, the subject of his health was very much off-limits.

In 2004, he underwent surgery in Germany for a slipped disc, and he returned to Germany in March 2010 for the removal of his gall bladder and a growth on the small intestine.

During his time in power, he survived 10 attempts on his life.

-AFP/ac



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Varun Gandhi likely to contest Lok Sabha 2014 from Sultanpur

LUCKNOW: Pilibhit MP of the Bharatiya Janata Party Varun Gandhi might contest 2014 Lok Sabha election from Sultanpur-the constituency adjoining Amethi represented by his cousin Congress general secretary Rahul Gandhi. Congress' Sanjay Singh is the sitting MP from Sultanpur.

So far, two things have actually given credence to the speculation that Varun might contest from Sultanpur. A team of around 24 persons from the BJP has visited all five assembly segments falling in the constituency to mobilise youth in favour of Varun's candidature.

Also, there are posters of Varun everywhere that read, 'Naam wahi jo kaam karaye, Sultanpur ka samman badhaye'. During a rally in 2009, Varun had announced that he would, one day, turn Sultanpur into his 'karmabhoomi' (ground of action).

It seems BJP's plan for Uttar Pradesh would be full of surprises this time - from Varun shifting to Sultanpur to Rajnath switching over from his Ghaziabad constituency and Narendra Modi contesting from Lucknow.

Varun told TOI: "Sultanpur has been my father's political ground, so I don't have to start afresh. There is no need for any survey, as I understand the constituency well."

About the team propagating his candidature, Varun said they were locals. On whether he had decided to contest from Sultanpur, Varun said it would not be right to say anything on this count as election was still a year away.

In 1984, former prime minister Rajiv Gandhi and father of Rahul Gandhi was pitted against his sister-in-law and Varun's mother Maneka Gandhi in the election that took place after Indira Gandhi's death, Rajiv won by a huge margin defeating Maneka, who wanted to establish her claim to her late husband Sanjay's legacy.

In 1977, former prime minister Indira Gandhi's son Sanjay Gandhi had contested from Amethi, which was then part of Sultanpur district. Amethi is from where both Sanjay and Rajiv Gandhi started their political careers.

Sanjay's was a debut that didn't happen because of the Emergency. He lost to Ravindra Pratap Singh of the Janata Party by a few thousand votes. However, he bounced back in the '80 elections, defeating Singh this time.

After Sanjay's death, Indira persuaded Rajiv to help her and in June 1981, he entered politics formally getting elected to the Lok Sabha from Amethi. Since then, Amethi has been the battleground for major showdowns.

Yet another showdown, will it be?

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How to Live to a Ripe Old Age


Cento di questi giorni. May you have a hundred birthdays, the Italians say, and some of them do.

So do other people in various spots around the world—in Blue Zones, so named by National Geographic Fellow Dan Buettner for the blue ink that outlines these special areas on maps developed over more than a decade. (National Geographic News is part of the National Geographic Society.)

In his second edition of his book The Blue Zones, Buettner writes about a newly identified Blue Zone: the Greek island of Ikaria (map). National Geographic magazine Editor at Large Cathy Newman interviewed him about the art of living long and well. (Watch Buettner talk about how to live to a hundred.)

Q. You've written about Blue Zones in Sardinia, Italy; Loma Linda, California; Nicoa, Costa Rica and Okinawa, Japan. How did you find your way to Ikaria?

A. Michel Poulain, a demographer on the project, and I are always on the lookout for new Blue Zones. This one popped up in 2008. We got a lead from a Greek foundation looking for biological markers in aging people. The census data showed clusters of villages there with a striking proportion of people 85 or older. (Also see blog: "Secrets of the Happiest Places on Earth.")

In the course of your quest you've been introduced to remarkable individuals like 100-year-old Marge Jetton of Loma Linda, California, who starts the day with a mile-long [0.6-kilometer] walk, 6 to 8 miles [10 to 13 kilometers] on a stationary bike, and weight lifting. Who is the most memorable Blue Zoner you've met?

Without question it's Stamatis Moraitis, who lives in Ikaria. I believe he's 102. He's famous for partying. He makes 400 liters [100 gallons] of wine from his vineyards each year, which he drinks with his friends. His house is the social hot spot of the island. (See "Longevity Genes Found; Predict Chances of Reaching 100.")

He's also the Ikarian who emigrated to the United States, was diagnosed with lung cancer in his 60s, given less then a year to live, and who returned to Ikaria to die. Instead, he recovered.

Yes, he never went through chemotherapy or treatment. He just moved back to Ikaria.

Did anyone figure out how he survived?

Nope. He told me he returned to the U.S. ten years after he left to see if the American doctors could explain it. I asked him what happened. "My doctors were all dead," he said.

One of the common factors that seem to link all Blue Zone people you've spoken with is a life of hard work—and sometimes hardship. Your thoughts?

I think we live in a culture that relentlessly pursues comfort. Ease is related to disease. We shouldn't always be fleeing hardship. Hardship also brings people together. We should welcome it.

Sounds like another version of the fable of the grasshopper and the ant?

You rarely get satisfaction sitting in an easy chair. If you work in a garden on the other hand, and it yields beautiful tomatoes, that's a good feeling.

Can you talk about diet? Not all of us have access to goat milk, for example, which you say is typically part of an Ikarian breakfast.

There is nothing exotic about their diet, which is a version of a Mediterranean diet, which emphasizes vegetables, beans, fruit, olive oil, and moderate amounts of alcohol. (Read more about Buettner's work in Ikaria in National Geographic Adventure.)

All things in moderation?

Not all things. Socializing is something we should not do in moderation. The happiest Americans socialize six hours a day.

The people you hang out with help you hang on to life?

Yes, you have to pay attention to your friends. Health habits are contagious. Hanging out with unhappy people who drink and smoke is hazardous to your health.

So how has what you've learned influenced your own lifestyle?

One of the big things I've learned is that there's an advantage to regular low-intensity activity. My previous life was setting records on my bike. [Buettner holds three world records in distance cycling.] Now I use my bike to commute. I only eat meat once a week, and I always keep nuts in my office: Those who eat nuts live two to three more years than those who don't.

You also write about having a purpose in life.

Purpose is huge. I know exactly what my values are and what I love to do. That's worth additional years right there. I say no to a lot of stuff that would be easy money but deviates from my meaning of life.

The Japanese you met in Okinawa have a word for that?

Yes. Ikigai: "The reason for which I wake in the morning."

Do you have a non-longevity-enhancing guilty pleasure?

Tequila is my weakness.

And how long would you like to live?

I'd like to live to be 200.


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Utah Teachers Flock to Gun Training













The perception of schools as sanctuaries from violence has been "blown up" by recent events and some believe it's time for educators to literally take the situation into their own hands and carry guns.


"We've had this unwritten code, even among criminals, that schools are off limits. Those are our kids. You don't mess with that," Utah Shooting Sports Council (USSC) Chairman Clark Aposhian told ABCNews.com today.


"That perception has been blown away now," he said. "It's been shattered and if there's one thing that parents across the country are united on, it's that they are committed to and serious about protecting their kids."


Aposhian spoke shortly before opening a weapons training class for teachers and school employees that drew more than 200 Utah educators organized by the USSC, a leading gun lobby group that believes that teachers should be able to fight back when faced with an armed intruder.


"One firearm in the hands of one teacher could have made the difference at Sandy Hook or Columbine, but they weren't allowed to carry in those schools," Aposhian said.


The USSC is waiving its normal $50 training fee today for teachers who wish to attend. Aposhian said the 200 person course was filled to capacity and said he plans on holding another session for people he may have to turn away today.


INFOGRAPHIC: Gun in America: By The Numbers


"We trust these teachers to be with our kids for 8 to 10 hours a day every day," Aposhian said. "I don't think it's a far reach to think that we could think that they would act responsibly and with decorum in protecting their own lives and the lives of the kids under their care."












Gun Owners Give Back: LA Residents Return Guns After Newtown Tragedy Watch Video





The idea of armed teachers has been part of a fiery debate on gun control following the rampage at Connecticut's Sandy Hook Elementary School that left 20 children and six adults dead on Dec. 14.


Utah is one of only a handful of states, including Oregon, Hawaii and New Hampshire, that allow people to carry licensed concealed weapons into public schools. It is not known how many Utah teachers carry guns in public schools because the records are not public.


But Aposhian said that he tells detractors that Utah has not had any school shootings or accidental shootings in the approximately 12 years the law has been in effect.


In Ohio, the Buckeye Firearms Association is launching a pilot armed teacher training program in which 24 teachers will be selected to attend a three-day training class.


Arizona's Attorney General Tom Horne has proposed a state law amendment that would allow one educator in each school to carry a gun.


During today's six-hour training session, the educators will be taught about gun safety, loading and unloading, manipulating the firearm, how to clear malfunctions, use of force laws and state and federal firearm laws.


The training sessions normally draw about 15 to 20 people, Aposhian said, but many of the teachers who have signed up for today have expressed strong feelings about attending the class.


"I think it runs the gamut from passive desire to get a permit because they thought about it here and there to a fervor given the recent events," Aposhian said. "Perhaps they've had an epiphany of sorts and realized that that sanctuary they work in, or at least the perceived sanctuary, isn't all that safe."


The Utah State Board of Education Chair Debra Roberts released the following statement today on the matter:


"The Utah State Board of Education expresses sympathy to all involved in the recent school shooting in Connecticut. In the face of this terrible tragedy, as schools move forward in taking measures to ensure the safety of students and school personnel, we urge caution and thoughtful consideration."


The statement noted that its schools have emergency plans to handle such situations.


Carol Lear, the board's director of school law and legislation, was more blunt about Aposhian's gun training, telling the Associated Press, "It's a terrible idea...It's a horrible, no-good, rotten idea."






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U.S. will hit debt limit on Dec. 31, Treasury Department says



Treasury Secretary Timothy F. Geithner said in a letter to senior lawmakers that the Treasury would begin to undertake “extraordinary measures” in order to forestall default. Geithner said the measures could create about $200 billion in additional funding available to the government – giving Congress two months before it must raise the debt limit.


To begin conserving money, Treasury will suspend a program on Friday that helps states and localities manage their borrowing. In subsequent weeks, Treasury will start to tap the federal worker pension fund for additional financial resources. (The pension fund will be made whole once the debt limit impasse is resolved.) Geithner added that the resolution of the fiscal cliff could affect these estimates. In particular, he wrote, “the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures.”

President Obama has insisted that the debt limit be taken off the table in negotiations between Democrats and Republicans over the fiscal cliff. But Republicans have insisted that the debt limit provides an important point of leverage to force spending cuts.

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