Transcript for Obama Says 'Yes' to Negotiations on Short-Term Debt Deal
Special group. -- want them -- New York with this ABC news digital special report President Obama will face the white house press corps in just a few moments. Standing his ground on the federal budget and the debt ceiling fight. The impromptu news conference coming after house speaker John Boehner -- this morning that everything -- on the table. We'll see the president will make a comment on that statement from this morning but first before the president speaks -- -- -- -- political director reclined to talk about. A preview of this on the president. And speaker Boehner spoke with all this morning but they have both very opinions and how that call went. These calls sound absolutely terrible generally speaking -- there's not a lot of information that gets transmitted best that we can tell bigger meaner and suggest that this is a much smaller calling blanket that was just the negotiation or just the discussion about how that will not be negotiations. The president's side a little more expansive but not much it doesn't sound like they're making any headway. Thus rendering -- conferences and not private meetings what the latest polls have 70% of Americans blaming Republicans for the shut down. How is the president -- -- public perception. More than half 51% disapprove of what he -- been doing but here's the thing that 51%. Is actually a steady number over the last week for Republicans the numbers have gotten worse and it's that trend line that many members of congress outside analysts and experts are looking at. In saying that Republicans seem to be taking it on the chin just a little bit worse no -- looking good but Republicans worse for the Wear. And Rick of course the president has wanted to have a clean C are put to the house for a vote. House speaker John Boehner says the votes are simply aren't there what's the latest that we have -- an ABC tally. We still think he's wrong but just barely two -- seventy members which is exactly. -- the number you need. To pass something in the house on record as saying they support a clean bill to reopen the government without any other conditions. All 200 Democrats and seventeen Republicans interest in their -- we've -- some Republicans. Go from being in favor of full funding to be against it now clearly -- a signal that speaker Boehner is working this one heart. And let's go to the president now at the White House briefing room and listen to his remarks. Take your questions so try to be brief top. This morning our -- speak with speaker Boehner and I told them what I've been saying publicly that I am happy. To talk with him and other Republicans about anything. Not just issues I think are important but also issues that they think are important. But I also told them that having such a conversation. Talks negotiations. Shouldn't require -- in the threats of a government shutdown or economic chaos. Over the heads the American people. Think about it this way. The American people do not get to demand a ransom for doing their jobs. You don't get a chance to call your bank and say I'm I don't pay my mortgage this month unless you -- in your car and Xbox. If you're negotiations around. Find somebody's house you don't get to say. Well let's talk about. The price on Medicaid and and if you don't give me apprised them -- burn down your house. That's not how negotiations work that's not happens in. Business it's not happens in private life. In the same way members of congress and the house Republicans in particular don't get to demand ransom in exchange for doing their jobs. And two of their very basic jobs are passing a budget. And making sure that America is paying its bills. They don't also get to say. You know unless you give me what the voters rejected in the last election. I'm gonna cause a recession. That's not how it works. No American president would deal with a foreign leader like this. Most of you would not deal -- Either coworkers or business associates. In this fashion and we shouldn't be doing this way here in Washington. And you know I've heard Republicans suggest that well -- this is reasonable businesses. Entirely appropriate but as I've said before. Imagine if a democratic congress. Threatened to crash the global economy and -- a Republican president -- great big gun background checks or. Immigration reform. And it's fair to say that Republicans would not think that was appropriate. So. Let's lift these threats from our families and our businesses. And let's get down to work. It's not like this is a new position and I'm taking here. I had speaker Boehner and the other leaders in just last week. Either my chief of staff or I have had serious conversations on the budget -- Republicans. More than twenty times since March. -- we've been talking all kinds of business. What we haven't been able to get our. Serious positions from the Republicans. That would allow us actually resolved some core differences. And they have decided to run out the clock until there's a government shutdown. For the possibility fault. Thinking that would give them more -- that's not -- Characterization. They've set it themselves that was their strategy from the start. And that is not how our government is supposed to. It's not -- me by the way who. Has taken the position that woman. Have conversations about -- senate Democrats. Have asked to sit down -- house Republicans and hash out a budget. But I have been rejected by the house Republicans in nineteen times. At the beginning of this year speaker mayors what we want is regular order and -- serious budget process. So senate should pass. A bill and house should pass a bill. Then a committee comes together to make hash other differences -- send the bill to the president well that's exactly what Democrats did. Except somewhere along the way. House Republicans decided they wouldn't appoint people to -- committed to try to negotiate. And nineteen times -- -- the best. So. Even after all that. The Democrats in the senate still passed a budget would have effectively reflects. Republican priorities. At Republican budget levels just to keep the government -- And the house Republicans couldn't do that either. The point is I think not only the White House but also. Democrats in the senate and Democrats in the house -- -- war. Man ample willingness to talk about any issues that the Republicans are concerned. But we can't do it. If the entire basis of the Republican strategy is we're gonna shut down the government. Or cause economic chaos if we don't get a 100% what we. So my suggestion to the speaker has been and will continue to be what's -- excuses. Let's take a vote in the house. Lets -- -- shut down right now let's put people back to work. There -- enough reasonable Republicans and Democrats in the house who were willing. To vote yes on a budget that the senate has already passed. That -- could take place today. Shut down mobile. Then serious negotiations could proceed. Around every item in the but. As soon as congress votes to reopen the government. It's also got to vote to meet our country's commitments. Pay our bills. Raise the debt -- Because as reckless as a government shutdown is the economic shutdown caused by America defaulting. Would be dramatically worse and I want to talk about this for a minute because. Even though people can see and feel the effects of -- government shutdown. There are experiencing -- right now there still some people out there who don't believe that. Default as the real thing and we've been hearing that from some Republicans in congress that default would not be a big deal. So let me explain this if congress refuses to raise what's called the -- -- America would not be able to meet all of our financial obligations for the first time in 225. Years. And because it's -- raising the debt ceiling I think a lot of Americans think. Is raising our -- it is not raising our debt. This does not add a dime to -- -- it simply says UK. For what congress has offered already authorized. American purchase. Whether that's. The greatest military in the world war veterans benefits or Social Security. Whatever is the congress already authorized. What this does -- make sure -- we can pay. Those bills. The last time that the Tea Party. Republicans flirted. With the idea default two years ago. Markets plunged. Business and consumer confidence plunged. America's credit rating was downgraded for the first time. Any decision to actually go through with it. To actually permit default. According to many CEOs and economists would be and I'm quoting here in -- catastrophic. Chaos. Either some of the more polite words Warren -- -- to fall to a nuclear bomb. A weapon too horrible to use. It would disrupt markets it would undermine the world's confidence in America as the bedrock. Of the global economy. And it might permanently. Increase our borrowing costs. Which of course ironically would mean that it would be more expensive for us to service what that we do have it would add toward deficits and our debt not decrease -- There's nothing fiscally responsible about that. Preventing this should be simple as I said raising the debt ceiling has allowed big name which is why. Members of congress in both parties don't like to vote -- -- makes you vulnerable in political campaigns but it does not increase our debt. It does not board deficits it does not allow for a single dime of increase spending all it does is allow. The Treasury Department. To pay for what congress has already spent. But as I said it's always -- -- -- people don't like dormant. Although it has been on 45 times since Ronald Reagan took office. Nobody in the past as ever seriously threatened to breach the debt -- Until the last two years. And this is the credit credit worthiness of the United States -- we're talking about this is our work this is our good name this is real. The government shut down millions of American -- inconvenience or outright hardship in an economic shut down. Every American could see their 401 -- and home values fall borrowing cost for mortgages and student loans rise. And there would be a significant risks risk. Of a very deep recession. At a time when we're still climbing our way out of the worst recession in our lifetimes. You know the American people -- fought -- -- too long. Come back from one crisis. Always a series. A handful of -- -- Republicans in the House of Representatives. -- -- The good news is over the past three and a half years our businesses created seven and a half million new jobs. Our housing markets -- we cut the deficit in half since I took office. The deficit is coming down faster than any time in the last fifty years. America's poised to become the number one energy producer in the world this year. This year for the first found a very long time were producing. More oil than we're importing. So we got a lot of good things won't force but -- uncertainty caused by just one week. Of this nonsense so far has caused businesses to reconsider spending and hiring. We've -- consumer confidence plunged of the lowest level since 2008. You -- in mortgages held up by thousands and thousands of home buyers weren't sure about the economic situation out there. And all this that's -- deficits of dozens of track from. So we can't afford these manufactured crises every few months. And as I said this one isn't even about. Deficits are spending their budgets are deficits are falling at the fastest pace in sixteen years. The budget that the senate passed is at. Republican spending levels. If their budget. The Democrats want to put -- on just to make sure the government was open while negotiations took place for a longer term but. And what's happened to you the way we got to this point was. One thing and one thing only and that was Republican obsession with -- -- -- report erecting denying. Health care. To millions of people. That long. Ironically is. Moving forward. So. Most Americans. Democrats and Republicans agree that health care. Should not have anything to do with keeping our government open or paying her bills on time. Which is why I will sit down and work with anyone of any party. Not only to talk about the budget all talk about ways to improve the health care system. I'll talk about ways that we can shrink our long term deficits. Also want to talk about how we're gonna. Help the middle class strengthened early childhood education and improve our infrastructure and research and development -- -- want to things I want to talk about. In terms of how we're gonna make sure that everybody is getting a fair shake in this society and our economy is growing in a broad based way in building our middle class. And by the way if anybody -- my sincerity about that -- put forward. Proposals in my budget to reform entitlement programs for the long haul. And reform our tax quote in a way that would close loopholes for the wealthiest and lower wage rates for corporations. And help us invest in new jobs and reduce our deficits and some of these were originally Republican proposals. Because I don't believe any party has a monopoly on good ideas. So I -- myself willing to go more than -- In these conversations. -- reasonable Republicans want to talk about these things again I'm ready to head up to the hill on truck. I'll even spring for veteran. But I'm not gonna do it until. The more extreme. Parts of the Republican Party. Stop forcing John Boehner. Issue threats. About. Our economy. We can't make extortion routine as part of our democracy. Democracy doesn't function this way. And this is not just for me it's also my successors in office whatever party they're from they should have to pay -- ransom either for congress doing. It's basic job. Got put stop to -- -- -- -- already this week I had to miss critical meetings and Asia. For more American jobs and businesses. And although. As long we get this -- that's not long term damage. Whatever we do these things. It. Hurts our credibility around the world and it makes it look like we don't have our act together. That's not something we should well. The greatest nation on earth shouldn't have to get permission from a -- -- responsible members of congress every couple months just to keep our government open. Or to prevent. An economic catastrophe. So let's pass a budget what's in this government shut down. Let's pay our bills let's avert an economic shut down. Let's -- the gimmicks put aside what's good for any particular party and let's focus on what's good for the American people because they know we've got a lot of work to do. So -- that romantic couple questions and I'll start -- Julie pace of if you. If congress does happen -- May just be. If that. Fit your opportunity. -- hair and still standing intervening week that they have had better just. Perhaps weeks or. -- I mean what -- said is that I won't talk about anything. What will happen is we won't agree on every. Read the truth is is that the parties are pretty divided on a whole big budget big issues right. Nobody understands and by the way voters are divided on a lot of those issues took. And I recognize that there are some. House members Republican House members where I got clobbered in the last election. And they don't get politically rewarded -- for being seen is. Negotiating with. And that makes it harder. Four. Divided government to come together. But I am willing to work through all those issues. The only thing. That. Our democracy can't afford. Is a situation where one side says unless I get my way and only my way. Unless I get concessions. Before we even start having a serious give and take. All threatened to shut down the government -- threatened to. Not pay America's bills so -- I wool. Not. Eliminate any topic of conversation. And I've -- -- so willing to engage. All the parties. Involved every leader on any issue that -- how long time -- -- that they would have. But I will say is that we're not gonna pay a ransom for America paying its bills. That's something that should be non negotiable. And everybody should agree on that. Everybody should say one of most valuable things we have is America's. Creditworthiness. This this is this is not something we should even come close. To form around -- and so when I read people's land. This this -- be a big deal we should test. But -- -- take default up for us pendency rides. And and I I'd say. It imagined in your private life. If you decided that. A -- a pay -- mortgage. For Mumford two. First lawyer -- saving money by not paying your mortgage. -- -- -- And you can anticipate that will hurt your credit. Which means that in addition to debt collectors calling. You're gonna have trouble barring -- future and if you are able or on the future -- to borrow at a higher rate. What's true for individuals is also true for nations even the most powerful nation on earth. And if we are -- Creating an atmosphere. In which people are not sure whether or not we pay our bills on time. Then that will have a severe long term impact. On our economy and on -- standard what. And that's not something that we should even be in a conversation about bash is not something that we should be using as leverage. -- -- -- -- -- -- Eighteen and Linda -- -- Rather events. I am. I'm gonna continue to be very hopeful that congress does not put us in that position. And I think people understand what the consequences are they will set that. Potential. Scenario aside. I I do know that there been some hoops. That if we just pay bondholders -- -- people who bought treasury bills. That we really won't be in default. Because those interest payments will be made. And to them what I have to remind him as we've got a lot of other obligations. Not just people who pay treasury bills. We got senior citizens who were counting on their Social Security checks arriving on time. We have veterans who -- disabled -- counting on their benefits. We have companies were doing business or government and for our military that have payrolls that they have to me and if they do not get paid on time. They may have to lay off workers. All those folks are potentially affected. If we are not able to pay all of our bills on time. What's also true is if the markets are -- -- without paying our bills on time. -- will affect our creditworthiness even if some people are being paid on time. -- -- understood -- this. Personal examples. If you've got a mortgage -- car note and a student moment you have to pay. And you say welcome extra pay my mortgage on an impaired -- along or my cargo. The -- -- impact on your credit. Or restore order -- say you know what I'm not sure this person's veterans were. And a minimum. Presumably they're gonna -- -- -- that's what would happen to you if you made those decisions. The same is true for the federal government so we are exploring. All contingencies. I -- secretary -- -- treasurer will be appearing before congress on Thursday and he can dress. Some additional details about this but let me be clear. No option is good and -- -- -- There's no. Silver bullet is no magic wand that allows us to wish away. The chaos that could result. If for the first time in our history we don't pay our bills on time and when I hear people trying to downplay. The consequences of that. I think that's really irresponsible. And I'm happy to talk to any of them individually and walk them through exactly why. It's irresponsible. And it's particularly. Funny coming from. Republicans who claim to be champions of business. But -- business person out here who thinks this wouldn't be a big deal. Not one. You go to anywhere from Wall Street to main street fiasco CEO. Of a company press this small business person whether it be a big deal -- in -- -- government has paid its bills on time. They'll tell you it's a big deal it would hurt. And it's unnecessary that's the worst part of it. That this is not. A complicated piece of business and there is no reason why. If in fact Republicans are serious about wanting to negotiate. Might have a conversation want to talk there's no reason why you have to have that threat looming over the conversations. I mean think about the only reason that the Republicans. Have held out. On negotiations. Up until last week or so. Is because they thought it was big enough -- that they would. Force unilateral concessions out -- Democrats and out of me. They said so. They basically said you know what the president so responsible that. If we just hold our breath and say. We're gonna threaten default than he'll give us what we want we won't have to give economic turn. -- again that's not my account of this the situation you can read. Statements from Republicans over the last several months who said this explicitly. And and so for them -- -- -- well wouldn't be a big deal if it if it happens that's not -- they've enacted over the last couple months. And it is not a big deal Lamar what I -- concessions now to avoid. It is a big deal. And nobody should be getting concessions for making sure that the full favorite for the United States is protect. -- -- -- bears upon multiple. There. What assurances can you -- those affected by -- who were concerned. I'm even wondering how worried are you first -- -- first solution to -- -- -- -- frustration. May do -- the nation's economy Anderson. Well -- semi regular important point which is. What were asking -- for Republicans right now. Is to keep the government open. At funding levels that Democrats. Think are. Very harmful to the economy. And inadequate. To make sure that the economy is growing faster more people are put back to work and the middle classes well. We're were willing to. Pass at least a short term budget that opens up the government at current funding levels. It doesn't even address the harm that's been done. Because -- sequestration. Now the Democrats have a budget that would. Eliminate sequestration this this meat cleaver approach to deficit reduction. And make sure there were adequately funded basic medical research. And Head Start Programs. And VA programs and a whole range of things that have been really hard hit this year. But we recognize that they're gonna have to be some compromises between the democratic position in the Republican position. And in the meantime we should spur the economy even worse by shutting down the government. So let me just give me an example very specific. Because of sequestration because. The meat cleaver cuts have been taken place over the course of this year. Thousands of families have lost head start slots for -- -- And so you -- parents all across the country have been scrambling trying to figure out. How can I find some decent quality. Child care for my kids. The government shutdown. Means. Several thousand more are going to be losing -- slots. If we vote. Today or tomorrow or the next day. In the House of Representatives to go -- reopen the government at least those additional several thousand people will be spared. The difficulties of trying to scramble figure out where your kids going to be when you're trying to go to work. But it doesn't solve the broader problems -- if we were gonna have a real negotiations -- Democrats would say. Let's solve the bigger problem what about all those thousands -- been hurt by sequestered. The Democrats are making that demand right now we understand there's gonna be some give and take. What we are saying is don't hurt more people. While we're trying to resolve these differences. Let's just at least make sure. That. We keep the lights off. While we're having these conversations and. -- -- -- -- You talk to -- hit to credibility. World that is in hot spots. I'm wondering let you ministries and -- talent -- flight towards China and Japan where college. And asking about whether the United States going -- Well. They -- won't disclose very specific conversations. Obviously my message the world -- The United States always has paid its bills and it won't do so again. But I think they're not just looking -- what I say there we're -- what congress does. And that ultimately is up to its bigger man. This will not get -- word on her home creditors. Until they see speaker better call up. A bill that reopens the government and authorizes the secretary of treasury to -- pay our bills on. And until they see that there's going to be a cloud over. US economic credible. But it is not one from which we can't work -- We've been through this before. You know every country every democracy in particular has. Brussels over the budget and I think most world leaders understand that they themselves -- through that there in -- democracy. What you haven't seen before I think from the vantage point of a lot of world leaders is the notion that. One party in congress. Might blow the whole thing up if they don't get their way. They've never seen that before. And that does make enormous particularly given what happened and 2011. -- in my we've been here before right we saw what happened in 2011. During the assumption was that -- Americans must learn their lesson. That there would be budget conflicts but. Nobody again would threaten the possibility that we would default. And when they hear members of the senate members -- congress saying maybe to -- -- be that bad. I'll bet that makes me nervous makes me nervous. That should make the American people nervous. Because that's. Irresponsible. It is out of touch with the reality. If it is it is based on. A flawed analysis of how our economy works. You cannot pay some bills and not others. And think somehow that -- -- paying some bills protects you from. A loss of creditworthiness that's not what happens in our own personalized I don't know why people think that's how it works. Four. The United States government. -- used a lot of murmurs of arms. Jack -- has used extraordinary measures to keep. -- paying our bills over the last several months. But at certain point those emergency powers run out and the clock restrict. And I do. Worry that. Republicans but also some Democrats may think that we've got a bunch of other rabbits in our -- There -- there comes a point in which. There the treasury. Cannot hold auctions to sell treasury bills we do not have enough money coming in to. -- bills on time it's it's it's it's very straightforward. And I know there's been some discussion for example about. My powers under the fourteenth amendment to go ahead and ignore. The debt ceiling -- Setting aside the legal analysis. What matters is is that if you start having the situation in which there there's legal controversy about. That US Treasury's authority to issue debt. The damage will have been done even if that were constitutional because people would be sure could be tied up in litigation. For a long time. That's gonna make people nervous. So sold a lot of the strategies that people talked about -- the president can -- a lot of big for even. Or you know he can he can resort to some other constitutional measure. From what people ignore is that ultimately. What matters is what -- the people who are buying treasury bills -- And -- all of this boil -- -- And in very personal terms if you're buying a house. And you're not sure whether this seller has titled of the house. You're going to be pretty nervous about -- -- minimum you'd want to. A much. Cheaper price. To buy that house because you won't be sure whether or not your gun owners in the most of those -- just walk away because no matter how much would like the house would serve ourselves. Last thing I want is to find out after -- bought at the I don't actually almost all the same thing -- true if I'm buying treasury bills from the US government. And here I am sitting here. What if there's a Supreme Court case deciding that. These are ballot. These are. You know. Valid legal instruments. -- in the US government to pay. Think. I'm going to be stressed. Which means I may -- purchase. And if I -- -- -- -- harassed for big premium. So. So there are no magic bullets here there's one simple way of doing it matters congress. Roy and -- and the fact that right now there are -- I believe. To go ahead and take. This -- off the table. Should at least be test. Speaker mayor keeps on saying he doesn't have the votes for. And what I've said is. Put on the forward to what happens and it minimum let every member of congress be on record. Let them let them vote. -- Keep the government open or not. And they can determine where they stand and defend that vote to their constituencies. And let them vote on whether or not America should pay its bills are not. And and if in fact some of these folks really believe that it's not that big of a deal they can vote -- And that'll be useful information to for voters to have and if it fails and we do end up defaulting I think voters should know exactly who. Voted not to pay our bills. So that they can be responsible for the consequences become -- it. -- -- You mentioned the Supreme Court term started a campaign finance case that sort of picks Epperson tonight left off -- If you plan -- What Reuters case would go even further than Citizens United. Essentially would say anything goes there are no rules. In terms -- how to finance campaigns. There are a lot of functioning democracies around the world at work -- work where you can basically. Have. Millionaires and lawyers to bankroll. Whoever they want power -- -- want in some cases undisclosed. And what it means there's ordinary Americans are shut out of the process. And Democrats are entirely innocent of this in the past. And you know I -- to raise a lot of money for my campaign. So I. They're they're they're there's nobody who operates in politics there as perfectly clean hands on this issue. But what is also true is that all of us should bind ourselves to some rules that say. The people who vote for us. Should be more important than. Somebody who's spent in a million dollars ten million dollars or a hundred million dollars to help us get elected. Because we don't know what their agendas are we don't know what their interest -- And I continue to believe that Citizens United contributors. Took some of the problems we're having in Washington right now. You know you have some ideological extremist who has -- big bankroll. And -- is entirely skew our politics and their whole bunch of members of congress right now who privately will tell you I know. Our positions are -- reasonable. But we're scared that. If we don't go along with the Tea Party -- -- of -- some particularly extremist agenda that will be challenged from. The right. And the threats are very explicit. And so they -- the line. And that's part of why we've seen a breakdown of just normal. Routine business done. Here in Washington. On behalf of the American people. And all of you know. Memo to all here for you don't know because it's very -- report on it. Big chunk of the Republican Party right now. Is our. And those folks. Are. Much more worried about a Tea Party challenger. Then there are about a general election whether got to compete against Democrats. Or go after independent votes. And in that environment. It's a lot harder for them to compromise. Mark -- This week the president China has visited several -- -- Asian countries and -- as it. It has shut them. He doesn't can't -- relative to regional summits. Both of which your administration has made it a pretty big time party. The broader patient had. I'm just trying to benefit from the chaos in Washington. And then we're probably used that in general that this -- the risk the reputation United States and overseas partners Pacific. You can point to where you are -- have seen from. And one that occurs to me it's. Trade deal -- -- Today announced that they still want to wrap it up but they no longer -- Thank you want to grab by the end of this year have you been there do you think you kind of gotten. That traditional post. I think it's a great example fans. We don't know but it didn't help that I wasn't there. To make sure that we went ahead and closed. -- trade deal that would open up markets and create jobs for the United States. And make sure that. Countries were trading fairly -- us in. The most dynamic. Fastest growing market in the world. I should amendment. But. You know I can tell you because I have to apologize to some of the holes countries. That. They understood. The most important back into for them. And the most important -- -- -- Bilateral relationship America's reputation is making sure that we reopen our government and we don't default so. I don't think it's gonna -- lasting damage as I said it it if if we. Deal with this the way we should. -- You know folks around the world -- -- this -- the usual messy process of American democracy but it doesn't do lasting damage. In the short term. I would characterize it has missed opportunities. We continue to be the one indispensable nation. There are countries across Asia who have welcomed -- -- it. Because they want to do business with us they admire. Our economy they didn't admire -- entrepreneur worse they know that their -- It is going to be contingent on. Working with us they care about the security environment that we. Maintain. Help maintain them that freedom of navigation and commerce that it's so important to them so. It's not as if they've got other places to go they want us to be there and they want to work with us. But. In each. Of these big meetings that we have around the world lot of business gets done and in the same way. The seal company if they want to close a deal. -- -- -- -- -- They want to show you look at some way it. Eye to eye and tell why it's important and and shake hands on -- deal the same thing is true with with respect to world leaders. You know and and the irony is. Our teams probably do more to organize a lot of these multi lateral forums and set the agenda than any. We end up being engaged much more to China for example and setting the agenda and move in this step forward and so when it's almost like -- not thrown out not shown up -- -- -- part. I figured -- it creates. A sense of concern on the part of other leaders but. As long as we get through this they'll understand it will be able to I believe still get these deals about. The last point I'd make -- is we can't do it every three months. Right. -- You know back in the nineties we -- a government shutdown that happened. One time after that. The Republican Party and mr. Gingrich realized this is the sensible way to do business. That we shouldn't engage in brinksmanship. Like this and then they started having a serious conversation with President Clinton about a whole range issues and -- got some things that they want -- They had to give the Democrats and things the Democrats want. But. It took on. You know sense. Normal. Democratic process. So. Here we are they went through this once back in 2000 what. And then have him -- -- right after my election. We went through something similar with the so called fiscal play. Where Republicans will negotiate about. Taxes despite the fact that taxes actually went up anyway. Even though they refuse to negotiate make it actually have gotten some things from us. That they wanted. If they have been willing to engage in normal negotiations. So we gotta keep it -- -- repeating this pattern that. I know the American people are tired of and to all the American people I apologize. That you have to go through this stuff every three months it seems like. And lord knows I'm tired of it. But. At some point. We've got to cut a break these habits. And and get back to the point where everybody understands. That. In negotiations there is give and there is take and you do not hold people hostage or engage in -- taking. -- -- 100% of your way. And you don't. You you don't. Suggest that somehow. -- health care -- -- you don't agree with is destroying the republic. Or is a grand socialist scheme. You know if you disagree with certain aspects seventh. Tell us what you disagree with in -- work on it. If your concern about long term debt that's a good thing to be concerned about but don't pretend as if America's. Going bankrupt at a time when the deficits been cut in half. -- that's what the American people I think expect is just. Civility common sense. Give and take. Compromise. Those are dirty words there's nothing wrong with a and -- I think the American people understand. I may not I -- I have false Michelle we'll tell you. One of them is not that I'm unwilling to compromise. I belong to compromise. My entire political career. And I don't believe that I. Have answers everything and that's my -- in Iowa. But I'm not a breach of basic principle that would weaken. The presidency change our democracy. And do great damage to ordinary people. Just in order to go along with. What -- house Republicans -- talking. -- Asked specifically about trying wondering whether everybody -- our thoughts. You know. I'm sure the Chinese don't mind that I'm not there right now. In the sense that in other areas where we have differences and they can present their point of view and not get. As much of push back its if if -- Rivera -- secretary of state curiouser and I'm sure he's sort of great job. But I've also -- it. Our cooperation with China is not a zero sum game there a lot of areas where the Chinese. And -- -- On trade in particular though. Here's an area where part of what we're trying to do is raise standards for for example Internet. Intellectual property protection. Which sometimes is a big problem in China and if we can get a a trade deal with all the other countries in -- that says you -- protect -- -- -- intellectual property that'll help us in our negotiations with China. -- -- Legal liabilities. Richard -- was. Jack -- the sectors treasury. Make a formal presentation. On Thursday before the senate committee because this is obviously sensitive enough. I think it would be paying close enough attention. Details count and I think prepared remarks from sector through on that topic -- be more -- But as I indicated before. We plan for every continues. So obviously. Your worst case scenario. There are things that we will try to do. But -- repeat I don't think any option is good. Stephen Douglas. Thousand budget process. In the past you negotiated along with that story with blue -- friends. Along within a dazzling freeze that. Peace -- -- you -- the fiscal commission. Republicans. Today are going to -- -- make another committee that would work out our differences. Is that is that something that you -- talk about on the side something that would necessarily get concessions. That's something that would be format war it you'll run. Yeah here's the thing. -- -- A note that speaker Boehner has talked about setting up some new processors some new super committee or what have you. The leaders -- in congress they can work through whatever processes they want. But. But the bottom line is either you're having good faith negotiations in which there's good give and take or -- not. There is already -- process in place called. The budget committees. That could come together right now Democrats have been asking for nineteen months. To bring them together. Make a determination. How much should the government be spending next year. -- appropriations committees could go through the list. Here's how much we're going to be spending for defense and here's -- will be spending for education and that's process -- work reasonably well for the last fifty years I don't know we need to set up a new committee. For a process like that to move forward. What has changed. Or what seems to be motivating the idea we have to have a new process. Is. Speaker Boehner -- at least some faction of the Republicans in the house and maybe some of the senate. Are holding out for. Let's. A negotiation in theory but in fact. Basically Democrats give a lot of concessions to Republicans Republicans don't give anything. And then that's. Dubbed this compromise and the reason that Democrats have to -- is because. They're worried that. The government's gonna stay shut down or. US government's -- default and and again back. You can dress it up anywhere you want if that's the theory that the Republicans are going forward where -- not going to work so let me just give you. One specific example I've heard at least and I I can't confirm this. That one of the ideas of this new committee as you could talk about. Reductions and -- discretionary spending. You could talk about. Entitlement reform and reductions in mandatory spending. You're talking about how long -- extend -- -- -- -- couldn't talk about closing corporate loopholes. That are benefiting. Ordinary folks economically. And potentially if you close -- would allow -- to pay for things like. Better education for kids well. I don't know why Democrats right now we're agreed to -- format that takes off the table all the things they care about. And is confined to the things that the Republicans care about. So all that again I don't know that that's exactly what's being proposed my simple point is this. I think Democrats in the senate and the house are prepared to talk about anything. I'm prepared to talk about it. They can design whatever formats they want. Is not fair and warm -- results in. An actual deal. Is. -- take. Or hostage taking and and the expectation that Democrats are paying ransom. Or providing concessions for the mere act of reopening the government or paying our bills. Those are not things that you do for me and they -- -- things you do you do for the Democrats. Here where it's not necessarily concession where it is -- negotiate. What the negotiations are going to look like you don't have to read overturn obamacare you can actually. Negotiate. What the hawks are going to look like service comfortable and you know you argument yourself this is that talks both for all -- -- won't be in your past. -- -- -- -- -- Usually people in both parties want to have some over something that they can. Point through Wednesday which is paying top I want somebody across the -- -- -- -- through another trillion dollars and that would. What -- which is fine and so they want to do that. Reopen the government. Extend the debt -- If they can't do it for a long time -- -- for the period of time which these negotiations are taking place. Why is it bad. We've got hundreds of thousands of people who are working right now in order for what you just described to occur. I don't make any sense. The Small Business Administration gives out -- billion dollars worth of loans every month to small businesses all across the country. That's not happening right now. So there are small businesses in every state that are counting on along. To get their business going and you've got the party of small business and Small Business Administration scandal that's that's -- -- call themselves. And yet -- suffer. He got farmers were waiting -- right now those loans cannot be process. For public criticism. Particle looks up for farmers. I happened disagree I think -- farmers general good under my administration but having said that. -- why were you keep the government shut down and those farmers not getting the loans. While we're having the discussions that you just talked about. The -- -- Republicans say they're very concerned about drilling. -- -- Obama has been restricting. For a production. Despite the fact -- all production is at its highest levels has been in years. Is continuing to -- when they -- You know the Democrats are holding back gold production in this country. While you don't one of the things that. Happens when the government shutdown is new drilling permits are process. So why would the Republicans. Say. The folks were interest in -- for oil sorry. We can't. Let those things be processed until. We have some negotiations and we have some cover to do what was supposed to be donated. That doesn't make sense. If if if if if if it. There's a way to solve this. It has to include reopening the government. And saying America's not him defaults to repair bills. They can attach some process to that. They gives them some certainty that in fact that things they're concerned about will be topics of negotiation. If my words not good enough but I've told -- I'm happy to talk about but if they wanted to specify only items. That -- think need to be topic of conversation papadore. I want to say you know part of that process is we're gonna go through line by line all the aspects of the president's health care plan we don't like and we want the president. Answer for those -- I'm happy to sit down more than for many hours as they want. Along with them gut. -- that is gonna make sure tens of millions of people actually get health care. I'm happy talk about around. As students do adults. -- -- -- -- -- -- in the campaign against terrorism. And if we're gonna -- US military operations. Around the continent -- -- -- -- -- and from the American and available forever. Well. You know if you look at the speech I gave of the national. Defense college several months ago. I outlined how -- so. The shift in. In terrorism around the world of what we have to do to respond to. And part of what I said is is that we had decimated coral -- of -- operating primarily between Afghanistan pockets. Where you now have these regional groups some of which -- explicitly. Tied to al-Qaeda or that ideology some of which are more localized. Few of them have. The ability to project beyond their borders but they can do a lot of damage inside their borders. And Africa is one of the places. Where. Because in some cases lack -- capacity on the part of the government's in some cases because. It is easier for folks to hide out. In. Fast rains that or are sparsely populated. That you're seeing some of these groups -- and we're gonna have to continue to go after them. But there's a difference between us going after terrorists. Who are plotting. Directly to do damage to the United States and us being involved in wars. You know that the the risks of terrorism and terrorist networks are gonna continue for some time to come we've got to have a long term plan. That is not just military base we've got to engage in a war of ideas in the region and engage where it. Muslim countries and and try to isolate. Radical elements that are doing more damage to Muslims of America doing to anybody else. We've got to think about economic development because although there's not a direct correlation between terrorism. And the economy there's no doubt that if you've got a lot of unemployed. Uneducated young men. In society is that. There's a greater likelihood. That. Terrorist recruits are available. But where you've got active. Plots and active networks -- gonna go after we prefer partly. We countries where this is taking place where we can we want to build up their capacity. We're not gonna farm out our defense. And I have to -- by the way the operations that took place both in Libya and -- Were examples of extraordinary. Skill and dedication and talent. Of our men and women armed forces they do their jobs extremely well with great precision at great risk to themselves. And I think they're pretty good examples for how those of us here in Washington should operators -- But -- But that could be fired back. We. Know that mister -- Libby planned and helped execute. Plots that killed. Hundreds of people. A whole lot of Americans. We have strong evidence about and he will be brought to justice. -- -- This president while -- waiting for the shutdown and why -- that you can't go along with any of the bills house has ever seen. Funding. The FDA had been rumored to her yesterday -- veterans benefits. This story you've got to be tough it is those bills get plugged into those programs that you. Support of course of course I'm tempted. Because. You'd like to think that you could. Salt at least some of the problems you couldn't solve all of it but here's the problem. What you've seen our. Bills that come up where wherever Republicans are feeling political pressure. They put -- bill forward. And if there's no political -- if there's no television story on -- and nothing happens and if we do it some sort of shotgun approach like that than. You'll have. Some programs that. Are highly visible get funded. And reopened. Like national monuments. But things that don't get a lot of attention like those SBA loans. Not being fun and we don't get to select. Which. Programs we implement -- -- -- -- bunch of things that the Republicans consider law that we have to do. And I don't get that chance to go back and say you know what. This cockamamie idea that this Republican. Congressman came up where I really don't like so let's not. What's not implement that. Once you have a budget. And -- government with a set of functions. -- make sure that. It's all operating we don't get to pick and choose based on which party likes what so. You know that's where the budget discussions take place -- if there are some things that the Republicans don't like. They should -- for eliminating those programs in the budget. Come with an agreement with the Democrats -- the Democrats -- and those things won't be funded. But you don't -- -- piecemeal approach like that when you're doing government shut. -- -- -- -- -- -- -- -- question and fear the -- and persistence. And has worked. I'll definitely be talked about the political dynamics. That. Leave the house Republicans feeling that they don't mind the question. They don't want. I'll tell them to think about that looking back at the twentieth. -- discussions of the budget drama. Is there anything that you wish it was done differently when -- women. After this what you call did not. What do you expect the political dynamics might -- and change. I prisoners in question. In 2011. I entered into good faith negotiations -- John -- He had just. Won the speakership. It was a time when because we were still responding to the recession deficits were high people were concerned about it. And I thought it was my obligation to. Meet him halfway. And so we had a whole series of talks and at that point at least. Nobody had. Any belief that. People would. Come close to potential default. I don't regret having entered -- those negotiations and we came fairly close. And whenever I see John -- to this day I still say should take the -- that I operative Beckman. Which would have dealt -- -- long term deficit problems would not have. Impeded growth as much -- really boosted confidence but at that time I think house Republicans had just taken over there feeling their oats and think in -- we don't have to compromise. And we came pretty close to. Default. And we saw the impact of that. I would've thought that they would have learned the lesson from that. As I do which is we can't put -- the American people and our economy through that wringer again. So that's the reason why I've been very clear. We're not -- negotiate. The deficit that has to be dealt with. In a reasonable fashion. And by the way you know I often hear people say well in the past it's been dealt -- all the time. The truth the matter is if you look at the history people posture about the debt -- frequently but. The -- the debt -- often got past was -- -- the debt ceiling onto -- budget negotiation once it was completed. Because people figured while want to take. A bunch of tough votes to cut programs or raise taxes and then it also -- to take -- debt -- won't let me do it all wants. But it wasn't a situation which. What if I don't. Get what I want. I'm gonna let us default that's what's change and that's what we learned in 2011. And so as a consequence. I said. We're not gonna do that again not just for me but. Because future presidents. Republican or Democrat should not be in a position where they have to choose between making sure the economy stays afloat we avoided worldwide catastrophe. Or. We provide concessions to one faction of one party in one house. And -- but but let me tell you a lesson I did not work -- did not learn a lesson that we shouldn't compromise I still think we should. I still think there are all kinds of issues that we should be talking about and I don't expect to get. A 100% of my way and I'm still very open to having conversations where it. Not just the speaker but. Any Republican over there so it's. Be back flying planes recently. With the full members career high pixel what I asked him into the political dynamic in the short term we'll. What has changed is -- they're aware of the fact that. I'm not -- and when it comes to. The full -- -- -- the United States that that has to be dealt with. You don't. Don't pay -- ransom you don't provide concessions. For congress doing its job in America paying its bills. And I think most people understand that. -- -- -- -- -- I was -- The small business the other day and talking much workers. And I certainly there when you're at plan. You're familiar job. What unless I getter rays right now I'm. More vacation pay. I'm gonna just shut down the plant -- don't want off the job America. -- equipment -- how you think that would go. They all thought they'd be fired. And most respect -- You know there's nothing wrong we're asking for -- asked -- for more time off. -- you can't. Burn down the plant. We're office if you don't get your way. Well the same thing is true here. I think most Americans understand perhaps the regular -- of -- Eight days into the government shut down -- president taking his message directly to the people they're not relying on Press Secretary Jay Carney in -- instead fielding questions from reporters this afternoon some highlights that he made. Presidents and he is in fact open to the possibility of a short term agreement with Republicans and the fact emphasizing. That he is not. The government. I want to bring in ABC's political director Rick -- from Washington DC who's been watching this as well and Rick a lot of things to dissect from the president's press briefing this afternoon. Essentially being the explainer in chief the president -- -- -- talk about just kind of set the stage of what's happened the temperature right now in DC the president calling for that's straight up or down vote what's the latest on the house count. The house counts -- actually we've got to like an eighteen members just this more than bare majority say they are willing to approve a short term. Funding bill that is clean it doesn't have any -- -- House speaker Boehner trying to avoid that but as you mentioned -- I think there was an off ramp that was offered by the president here in this extraordinarily long speech and it's and -- question and answer session. He said he could see a short term deal that extends the debt limit and -- the government for some period of weeks presumably. To just set the framework to allow enough time for negotiations -- happened that actually seems plausible it has the benefit of both sides -- able to look Tibetans -- We didn't -- on our principles now the bigger issue is what do you do at that time does or anything different about the outcome at the end of that but at least delays the immediate crises on our hands and in fact the matter is that he -- that he will even talk about health care obviously the main crux of this entire debate. -- -- so interest -- -- listen to these because you know there are so many different audiences you know that he's speaking to the American people trying get them to pressure members of congress but -- is important is how members of congress hear this and for him to put health care on the table of course he's not -- back down from the about a health care law also long term deficit issues on the table. That is that gives you more pieces at least the build something and Republicans that will be listening to that those who actually want to have a way out of this crisis and another one coming with the debt ceiling. They're gonna listen to that say. Okay now some of the war with here so I think that just as important as is any private phone call right now these kind of public statements of the -- the president just express now at the -- -- the president was addressing reporters there senate majority leader Harry Reid calls for open quorum on the senate floor. What's happening there. All the senators are actually. At their desks in the chamber that you see that that's we don't see very often that's pretty rare that senators actually sit. Can the United States senate has strings of sentences that is to honor. There are no change is actually in the senate is not going to be even a vote this afternoon -- to understand. The idea though is symbolic more than anything else to show the American people senators are working on this hope that the the idea all senators in one room at least bring -- people together. I gotta say what we're measuring things in tiny gradations of of change but the events of the last hour and twenty minutes or so since the president started speaking. Now with senators on the floor. Feels like the ice maybe break. Hanks who well -- -- saying the -- -- now repeatedly over the past couple days up. I guess if there's a little bit of glimmer -- publisher everyone's got to kind of clean on to that as best they can't. House speaker Boehner just tweeted this out in fact -- response to this flashback. Post negotiated in good faith with dams and debt -- In 2010. But that debate was a different climate than now. It was and we were so close that the timing and in a much different environment and in this we heard that the president -- states make reference to that the problem is that there is -- there's an have been erosion of trust in the last few years that these leaders don't feel like there's any basis. For them to even talk I was struck by one little line that president has every time that he sees Boehner he mentions -- the house speaker that he should've taken that deal. I can imagine the speaker Boehner loves it that. His nose being robbed in that every time he sees the president's the United States but they don't have -- interpersonal relationships and the the fact that we have. The memories of these previous failed negotiations that. Hangs over the two men at the center of this and that's why we've had 78 days now -- shut down. And literally no movement in terms of the public posturing or -- the private negotiations. At the same time the language has continually gotten more acidic is gotten much stronger the president even uses on his own. Strong language that we can't make extortion a routine part of the government. -- and goings of -- the senate Republicans are pushing the country into recession. Yeah I think that there's been an analogy to the White House is as -- -- from the beginning one of hostage taking suggesting that Republicans are. -- are acting like terrorists it throughout this. Reported that obviously doesn't help things along that's not what -- Republican wants to -- and by and large Republicans feel like they're fighting for principles here you can agree or disagree with them. And what their tactics are but they feel like they have the will of their own voters on their side so. I'm not looking for things to to just break entirely there was a logjam before -- we saw splinter. Just break loose but I I think that -- -- measured against the lack of progress of the last seven or eight days that's actually something. And at the same time the house and the senate Republicans are obviously watching to see what the president is saying. Republican senator Tim Scott South Carolina tweeted this out -- the president was speaking he's quoting. Then senator Barack Obama in 2006. The fact that we are here today to debate raising America's debt limit is a sign of leadership failure so. The question as with Senator Obama vote against President Obama. If it is questionable that the president the White House and apologize for that vote they said that Senator Obama made a mistake in my mind -- watching Senator Obama and now president Obama's career. -- my hunch is that's the one vote that he made as member of congress that he read the really wishes he could have back. Because it takes away much of the high ground that he's on talking about the debt negotiations -- point. To the White House won't make is that at the time Democrats are in the minority there was no question. That the majority would prevail Republicans would carry the votes which has been the practice for the debt ceiling for a long time. For those strident comments about how raising the debt ceiling was a failure of leadership -- of course the national debt has. Doubled over the last decade since the time of that vote those are stinging words the throw back at the president and again I think -- words that he wishes he had back. And the president also saying that the Treasury Secretary Jack who make their presentation on Thursday outlining. The way in which the government might handle prioritizing bills and essentially the budget going forward if in fact we do reach that that debt ceiling limit which potentially speaks to the severity and obviously the the -- back up plans and the alternatives that the White House is that Lincoln Center. This is getting real no doubt about it I think. The fact that we'll get to that point with the Treasury Secretary have to say we're gonna pay these bills and not those bills that's never happened before in the history of the United States government. Cities are very real times that one of the questions on my mind is how much the concern of the business community. Bubbles over to members of congress I heard privately from many members of congress including many Republican members to say it still inconceivable that we get to that point. And maybe it is the glimmers out of today's events suggest otherwise but -- -- -- is -- still that possibility we're getting close to that time the treasury making contingency plans they've never had to -- before. The crux of this has many Affordable Care Act Obama -- Republicans are touting that fact that the launch. Of those exchanges. Were emblematic essentially the whole -- not there -- problems with sign up for with people -- information about it is the White House concerned about that message. Growing resonating among the American public. They are in fact one Republican -- made a point to me today that imagine if we didn't have this whole but it is -- debate over funding. And over the debt default would be talking about obamacare and how bad their worst first week of those exchanges. Has been to the White House in the sense dodges that by having the focus on other even more serious things. But the point the White House will make about that is that what matters is the result not the process that. You have people will be annoyed trying to get on line and have trouble creating an account -- -- the wrong button and have some problems but. Bottom line will to have health care on January 1 and that is was going to be. The success or failure of the Obama health care law who signs up for it to do enough healthy and younger people sign up for this to meet the financing work. To people that didn't have access to healthcare before have access to health care that is that is dependable that is quality that matches their needs. That's going to be the bigger thing in in in intermediate term not even just long term in the intermediate term determining whether the Obama health care law works. That crux of the budget debate -- of course senators as we're talking about Rick the senators whole in the -- right now talking about the effects. Of the shutdown of the government and Senator John McCain not that long ago just mentioned the fact that right now death benefits are not being paid out. To those that are killed in action he had this to say. Today. Showdown -- outrage military -- benefits denied to families of fallen troops. You know Bennett and at least five families -- US military. Members killed during during in Afghanistan over the weekend. We're given a double whammy by federal officials not only have your loved ones died. But due to the government shut down. You won't receive a death benefit. You know. -- rating of congress we joke about about being. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Blood relatives and paid staffers. Shouldn't we shouldn't we as a body. Republican Democrat that matter we are shouldn't be embarrassed about this. Condition. But what what what do the American people think. When they -- That. Death benefit. For those. Who served and sacrificed. In most honorable way. Are not even their family should not even. Eligible for death benefit us. I'm ashamed. And embarrassed. As an emphatic and emotional statement from Senator McCain in the question is -- is that going to have any kind of sway a senate or house. No enemy to be glib about it but the two sides are so entrenched here right now that I think they've lost the capacity largely for shame there's nothing. They can change it from that perspective what what's gonna change this is a way out that he gets both sides. Much of what they wanted everybody needs to get something that is -- a -- negotiations. And it matters and what's going on right now. Everyone has the walk away feeling good about themselves hold their heads high it's it's it's a live another day. And fight on for the battles that matter to them so yes there will be awful stories that emerge throughout the government shut down -- be worst stories that would that potentially would emerge. As a result of -- -- to fall. But that isn't that isn't going to be what drives this until -- the -- people drive the process. Get the members of congress involved in this and that someone is able to come up with something again when neighbor delivers the beginning of something today whether or not it goes anywhere it and -- of the more optimistic signs we've seen in days and yet Rick regarding death benefits in a shocking juxtaposition. There is a report -- the congressional gym in fact does remain open because it was deemed essential. Yeah -- there's actually some conflicting reports on whether the Dini of essential. Existed or not be. The staffers there are furloughed so in the words of one member of the senate it's getting kind of sticky. In the GM because there's no one there that to clean up but the actual. Building itself it's in a congressional bill in this otherwise open members of congress are able to get in their out we've been told that that someone had used the facilities there -- over the last few days. The adding that the more sensible explanation you might have here that includes. A restroom facilities and shower facilities there are some members of congress who actually live in their offices. And -- and and for them to have access to that matters quite a bit. That's tonight no means to defend the decision to keep the congressional -- and gym -- we have programs like Head Start Programs like survivor benefits that. Members -- -- terrier killed. Bill stalled stopped as a result of the of the parcel of. Shut down and in on this final point that Rick and -- was -- that the president talked about he was asked if in fact is he attempted. To take those house Republicans offer up on some of those piece -- bills that were passed for FEMA for head start for the FDA. And emphatically in fact he said that he wasn't fact tempted it points. Yeah I was struck by. At a you don't hear you don't hear the president say that when he issues veto threats out there -- budget office that I'm actually -- to sign this thing but but what he said he is looking. There are lots of things the government that does that he thinks are huge priorities in fact most what the government does. But the point that he made -- you don't get to pick and choose and he knows that this is part of negotiating strategy. He's comfortable mostly although he's he is made an exception for active duty military he signed that bill to make sure that members of the military. Get paid the route and also he's also indicated that he would sign a bill guaranteeing back pay for federal workers but he doesn't want -- -- box into the scheme of picking and choosing because that is a hard team to win. When -- down to the tough choices. And he's trying to as much as possible keep a hard line in these negotiations eight days and. 88 days and an -- a lot of we're hoping that this -- count will not go up exponentially higher. -- in Washington DC Rick thank you so much for your time we appreciate it. -- -- Of course have a complete report and ABC news dot time before we leave you we will be live streaming to events that are going on right now both on the house and the senate the senate and that quorum that senate majority leader Harry -- -- short time ago. For now on -- tougher New York with the CBC news digital special report.
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