The White House is drawing up emergency plans for next week’s debt crisis deadline in the event that Congress fails to reach a last-gasp compromise.
With only six days left, the White House dismissed as “political theatre” a new bill before the Republican-controlled House that would cut spending in return for raising the $14.3tn (£8.7tn) debt ceiling.
The White House spokesman, Jay Carney, addressing the daily press conference today, said the bill was hated by the Democratic-controlled Senate and the White House and was “dead on arrival”.
The Senate will not vote for it and, even if it did, Barack Obama would veto it. Fifty-one Democratic members of the Senate, a majority, published a letter pledging to vote against the House bill.
Global markets, initially sanguine about the crisis and confident of an eventual compromise, were increasingly jittery on Thursday.




Small businesses that require professional indemnity insurance (PI) are finding it tougher to renew, research suggests.