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As time runs out to prevent a US default, debt-limit negotiations deadlock

Debt-limit talks between congressional leaders and the White House appeared to stall late into Tuesday night as time continues to run short to avert a U.S. default.

Despite months of negotiations and public posturing, congressional leaders and the White House are still split on a deal to raise the debt limit, with less than two weeks remaining before the government will run out of room to borrow money and risk defaulting on its financial obligations.

Democrats want any deal to include higher taxes on the wealthy and corporations, while Republicans are insisting on deep spending cuts as their price for supporting a debt ceiling increase.

Unless a deal is reached soon, the government will be forced to begin defaulting on its financial obligations within the next two weeks, potentially leading to a stock market crash and a further deterioration in the U.S. economy. Lawmakers have been warned that unless an agreement is reached soon, the U.S. may be facing a “financial Armageddon” if it defaults.