full faith and credit of the united states of america. >> the president says i'm not going to negotiate. well, i'm sorry, but it just doesn't work that way. >> congress needs to put an end to governing from crisis to crisis. >> if we don't act now, it's going to be too late. >> tea party republicans have demanded the impossible. >> this was all about elevating the debate in the public. >> it has been a big waste of time. time, time, time. ♪ >> yeah, that's what it feels like yet again as congress ticks

closer and closer to a government shutdown. some fear mongers are saying the shutdown will be the end of the world as we get it. we even have a countdown clock. the odds of a severe long lasting shutdown are less than the odds of ari not saying something awkward in the next hour. >> awkward. >> what will happen -- >> well played. >> what will happen if the government shuts down and how close are we to that really happening? let's start with nbc's own luke russert. what do you think? >> reporter: well, tour'e, john boehner is in an extremely difficult position. he's been boxed in by the more conservative element of the house gop conference. they say they will not fund the government unless the president's health care law is completely defunded. the government passed a clean bill now in the hands of the house.

we're unclear as to what path he'll take. he can attach a conservative amendment to make it more friendly for conservatives or pass the clean one or one week to two week delay. but no one necessarily knows how it's going to play out. he's most likely going to need the help from democrats. as for what would happen in the government shutdown. essential services like national security will continue to function and paychecks from medicare and social security will continue to go out. however, it will cause a headache for a bunch of americans who want to get passport visas coming to d.c., can't see the panda at the national zoo because that's closed and national parks will shut down and pay in the military will stop and nonpersonnel workers will be furloughed. and in the past the furloughed workers, congress has restored their pay. but there's no guarantee that any furloughed federal worker would receive back pay, in an

area like d.c. and maryland, a lot of federal workers, that is a lot of deal that a lot of folks are very worried about after sequester. in the immediate beginning, the government shutdown is more of a headache. it will not necessarily impact the economy that much at the beginning. if it lasts longer than a week, i spoke to mark zandi, he said it could be disastrous for the economy and all of the guys heading into the fight over the debt limit where nobody has any idea how john boehner is going to be able to lift the debt limit with house republicans yesterday reject gs his plan to raise the debt limit that included every conservative goody you can imagine. keystone pipe line, they said, no thanks yesterday to that limited extension plan. so we here in washington, d.c. might be the end of the world as we know it. we just don't know. >> luke, always great to see you. good luck to the bills this weekend, speaking of headache.

we want to look at congress, the present and past. in a moment, we're going to have the president speaking, but for now, remember this? >> good evening, neither the president nor the speaker nor senator dole will give so tonight much of the government remains shut down. both sides are claiming this is a battle over principle but in this case principle is the foster child of election year politics as the stakes in 1996 makes this standoff all the more than complicated. >> today another government shutdown and another day of finger pointing as the president and republicans blame each other. bottom line for americans, forget about touring the white house or federal museums or parks, the doors are locked. it will not be as painful as the last one but doesn't look like it will end soon either. >> that was the '95-'96 shut down. peter welch was not in congress then but the lessons still ring true today. congressman, there's three days left in the federal fiscal

calendar. leaders on both sides say a shutdown seems likely and the senate -- house is not going to accept the senate plan that the senate is working up. the president is not going to negotiate with republicans who seem to have given us more of a r ransom note. >> it's totally up to john boehner. does he continue to apeace the tea party wing or he'll have to depend on democratic votes to pass it. i think at the end of the day after all of the dysfunction over there in emotional angst is exhausted, boehner will make the right choice and put it on the floor but it may be a while before we get there. >> congressman, we are awaiting the president speaking at 3:30 p.m. today, a somewhat unusual afternoon address we expect to

be some pressure here on this house republican caucus. and you were elected in 2006, one thing people forget about how this republican caucus operates, is that 47% of these republicans were actually elected after 2009. there's no memory of the past government shutdown or even preobama era. do you think that is part of the problem here? >> yeah, i actually do. you know, in august of 2011, we had the fiscal cliff and we came near default in another shutdown. this is much worse. it's worse because the republicans who were supporting this actually think it's a sensible plan. and they think that shutdown is a legitimate alternative. and the fact is it's unthinkable. a great country meets its obligations. why are we going to abandon a million new veterans from iraq and afghanistan? americans won't tolerate that. the second thing, it's undoable. if we default or shutdown, the

markets are going to react violently and quickly. they are going to pistol whip congress into doing then what we should do now and that's meet our obligations and pay our bills. >> congressman welch, good luck this weekend and thanks as always for joining us. >> thank you. >> now for a look at congress of the past, former congressman, patrick murphy joins us now. what we're not talking enough about is what the constant delays not passing a budget in four years, what that actually means for us longer term. this is how our very own chuck todd put it. >> the government saves money when it buys things in bulk like ordinary people do at the big box grocery store. short term spending bills like the one congress is about to pass means the government has to pay higher retail like prices. >> basically if you're buying a single roll versus buying a bulk of it, it's going to be more

expensive, right? >> that's exactly right. this is the example of why 90% of the american people do not like congress. they are not doing their basic jobs. number one responsibility of the congress of the united states is to pass a budget. they are not up to the task. and i want to go back to ari's point when he talked about peter, you're right, 47% of the republicans in congress were elected in 2012, and 2010. elections have consequences. this is what the american people have gotten and it's time to change congress. >> and patrick, you were there, god bless you in the least popular of all houses in the country. and looking past this particular debate, there's obviously some structural issues there because -- this is not to take away personal responsibility from the members of congress who were there and are obstructing and causing these crises but responding to their political self-interest. putting these immediate crises

aside, what kind of reform should we be pushing for to change the dynamics we have in the house? >> krystal you're right, it's about self-preservation. the campaign finance reforms that needs to be acted are number one, we need to make sure we have when you talk about redistricting, that happens every tens years, independent nonpartisan commissions. number two, some true campaign finance reform such as what we see in connecticut and new york. and lastly, krystal, gabbert, iraq war veteran, vice chair of the democratic party and freshman congressman. she came out and said if the troops aren't getting paid, i'm not taking my pay from congress. you think about it, those private first class in afghanistan, kabul afghanistan, they make $20,000 a year. there are families at home in fort bragg or fort lewis, washington, right now aren't going to get their paycheck. they are barely surviving on

$20,000 a year. that's an absolute disgrace. >> that's right. >> congressman, the president was worked with this congress on cuts. he's worked with them on sequester. he's met with them on tax reform. but he doesn't want to negotiate over the full faith and credit of the united states, nor does he believe we should go into shutdown for laws that are good law in the affordable care act. what else can he possibly say today? >> well, i think he's got to be straight to the american people. you have to say listen, we passed obama care in 2010. and in 2012 the president was re-elected, the house republicans lost eight seats, they ran on this and lost in the u.s. senate and the white house, the supreme court has ruled this. he's got to explain what this bill does but also that we can't go back and change -- this is the law of the land. but secondly, the upcoming fight

on the debt limit. we cannot hold our economy hostage on these radicals that are trying to ruin our economy and frankly hold hold the president and every day families hostage with this fight. >> patrick, one last question before we let you go. do you know the answer to this? when was the last time a huntsman was in costco? >> well, i think -- >> the answer is actually 1996. i don't know -- >> come on. >> thank you, tour'e, i was there last week. >> my wife is republican and abby is like my wife, moderate republican. >> good love all around. >> well done, patrick. >> we've just learned the president will make a statement at 3:30 eastern, expecting to comment on the looming shutdown. but first, we have a very special guest to join us on this friday's "cycle." constipated? yeah. mm.

some laxatives like dulcolax can cause cramps. but phillips' caplets don't. they have magnesium. for effective relief of occasional constipation. thanks. [ phillips' lady ] live the regular life. phillips'. [ phillips' lady ] live the regular life. so i can reach ally bank 24/7, but there ar24/7.branches? i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally.

you're not linda. i'm filling in for officer owens. she used double miles from her capital one venture card to take an early vacation. buckle up. let's go do cop stuff. [ siren chirps ] license and venture card, ma'am. was i going too fast? oh, you'd be going twice as fast if you had double miles. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. freeze! don't touch the face! can i drive? absolutely not. what's in your wallet? ♪bsolutely not. (announcer) answer the call of the grill with new friskies grillers, full of meaty tenders and crunchy bites.

hello there, this is not saturday, the cycle's krystal ball won the new game show last saturday. as you may or may not know, one of the big prizes for winning up against the clock with steve kornacki is an appearance on the cycle, what will we do? we'll put krystal in the guest

spot and take her place at the table for the segment. krystal, welcome to the guest spot. >> "the cycle" is my favorite show. >> second, krystal, let's start with the question about a state you know a thing or two about when it comes to politics, that is virginia, i've been telling people it is the most exciting election this year in 2013. >> tough call. >> and only election in 2013. >> you have new jersey but that's hardly a race. >> only competitive election. you have terry mccalliffe. four points, that's the real clear average. there was a debate and it seems people don't like mccalliffe do you think cuccinelli may have a shot at this. >> it reminds me of the

presidential race because you have the president ahead of mitt romney for almosthe whole time, small but significantly there was a chance romney could come back but the stability of the lead is what was important. hold on -- wait. i just realized something here, steve. when i go on your show, you get to ask the questions but you're on our show now. so we get to ask the questions. >> yeah. >> how unscripted. >> we may not have the big budget like you do on "up against the clock." but we do have no prizes actually either, which is unfortunate, but we have this jacket. >> oh, my god. >> which i will put on now. and i also have fellow questioners tour'e, attorney ari and eager abby and i'll start by asking three questions in round one of up against the cycle with krystal, tour'e and ari and steve.

first question, steve, a tough one. who is speaker of the house of representatives? >> john boehner. >> excellent job. >> well done. you get some points. next question, who is the speaker of the house in virginia? >> oh, are we talking house of -- >> house of delegates -- well done. >> i'm going to go with smith. >> good guess, it's bill howe. last question from me -- >> sound effect from saturday. next question for me, what was it ma miley cyrus did that she got in trouble for recently? >> praising her father's musical career. >> that's amazing. good guess, not correct. of course the correct answer is twerking. >> twerking wait?

>> twerking. >> do you know what that is? >> it looked vulgar. >> i think that was the problem. >> it was a little vulgar. i turn it over to my fellow questioners. >> i only have one question, i want to know the other prize question, does steve know what is miley's father's name? >> billy ray cyrus. >> my actual question to you since you got that pop culture question -- >> i can do 1993, tour'e. >> can you name the four members of the beatles? >> four members of the beatles, john lennon, and there was george harrison. of course, there was ringo starr and wait a minute, i'm doing well and got -- paul mccartney. >> very good. very good. you didn't think i would get the beatles. >> my turn. >> you get more points, congratulations, how many calories are in a qdoba chicken

taco salad? >> trick question it no longer exists because they shut down all locations, only one mexican salad empire here in new york city, the answer is trick question. >> ding ding ding, correct answer. >> it was my favorite restaurant. >> and steve, this being your final and most important pop culture political question, what law was inspired by an eddie murphy movie? federal law. >> was it the movie -- trading places? >> that was the movie. >> did they ban rich people from trading the lives of poor people for pleasure? >> no. >> we can accept that as -- >> what was it -- now i'm curious. >> the law as people remember in the finale scene, they basically short the commodities market based on government data about the orange crops and it turns

out that's something you can do so the 2010 congress banned the use of government data in that way. >> i like steve's answer better. he gets the points. i have one final question for custody of the coveted government up cup, which is, who will be playing up against the clock this weekend, steve? >> i'm so glad you asked. we will have joan walsh and jonathan hap capehart and anna marie cox and the jacket you are wearing will be on me hopefully. >> yes, it will be. once wearing it for me is probably enough. thank you very much. we will be watching the show. that was fun. we like to have fun on a friday sometimes. we are wait being on the president's comments from the briefing room. we'll have more on that coming up next. has it's ups and downs.

seasonal... doesn't begin to describe it. my cashflow can literally change with the weather. anything that gives me some breathing room makes a big difference. the plum card from american express gives your business flexibility. get 1.5% discount for paying early, or up to 60 days to pay without interest, or both each month. i'm nelson gutierrez and i'm a member of the smarter money. this is what membership is. this is what membership does.

[poof!] [clicks mouse] there's doughnuts in the conference room. there's doughnuts in the conference room. automatic discounts the moment you sign up. 100% whole grain brown rice and wheat and bake it with real sweet potato or savory red bean? a new line of triscuit crackers with a delicious taste and a crispier crunch. brown rice triscuit. a new take on an old favorite.

we're minutes away from the president briefing us in the briefing room of the white house

in a rather awe steer moment, an interesting and difficult week, with a shutdown looming as well as discussions with iran ongoing. a lot to discuss at this moment. ari, with a shutdown threat looming and people -- leaders in both parties saying this might really happen, once again, this used to be fairly common, i think seven shutdowns when reagan was president, but only one since -- the last one since was 1995, '96. a rather major moment in this presidency. what do you think the president will say and who will be the real audience? is it us or congress? >> i think when the president comes out in a moment like this, it is much more about when he's talking than what he's going to say. everyone in washington, including the congress, has heard his negotiated position. we don't know exactly what he's going to say but no one expects him to come out and reverse himself on friday or give away new ground in the negotiations. the when is important because

the clock is ticking as we've been covering. you cannot just turn out a conference committee overnight and can't get both houses frz congress to agree overnight, they are far apart based on what the caucus is still asking for. what we expect the president to say is, please understand i'm not moving. i'm not changing my position. i'm not giving anything up. we get into the messaging that goes into the sunday shows and political conversation on who to blame and why this is happening. with regard to the affordable care act, we've heard the president all week in speeches directed beyond the beltway press corps, that this is law, this is ratified, the scenario where he and john mccain have been together. i expect him to say, if we see the government shutdown it will be because the republicans are ng unreasonable and can't accept the fact this is settled law. >> and given him additional ammunition with the totally absurd list of debt ceiling

demands that national review got a hold of it. there's a lot of president could get into, the u.n. general as m assembly was this week. there may be an update as well with syria and russia. you're right to point out, ari, the president has been speaking all week about the affordable care act and the exchange opens next week, another reason why this is a critical moment in his presidency. but i would suspect a lot of the statement today would be centered around reminding people of how we got to the brink with this government shutdown and reiterating the fact as he did in a call to john boehner, he is not going to negotiate it. the reason is simple. you cannot get into this repeated cycle of government crises, which is what we're in right now. if you give them an inch now, they are going to think that every time you have one of these deadlines, they can again throw out the christmas wish list and try to get every single thing they want, despite the fact we just had an election to decide these issues and they are fund

amountly youp setting the balance we have set up. >> is he speaking to the american people or speaking to congress? i think we can all agree, whatever he says is not going to influence some of those members in the house that just aren't willing to budge when it comes to the budget. we've all talked about obama care because that will define his domestic legacy as president and he knows the realities at stake. out of those 7 million people that need to sign up for exchanges, there need to be 2.7 million young people signing up for that and that is problematic if it doesn't happen. i don't know if it's as much to congress as the american people. >> i would reverse that equation, he was speaking to the american people on -- what was it tuesday, thursday -- >> the cgi. >> with the speech. >> the interview with the president clinton, there saying to americans, let me explain it again and get you on board.

it's a friday afternoon thing right before the federal fiscal year is about to end, the shutdown threat is looming. he's speaking to congress -- going to probably come out slightly tough, not as angry as he was around other things, chuck hagel and susan rice, a fairly tough thing saying this is not right. this is not negotiating, this is a ransom note and the way the governing should happen. >> we have an unusual situation because usually at least in recent years, both sides have been sort of locked into their positions. but i suspect there are a good number of people on the republican side, folks who aren't as vocal as the ted cruz' of the world who are very uncomfortable with what the strategy has been. and some have come out and been very vocal about their discomfort like peter king and john mccain. so those folks and others who have not been as out there in terms of critique of the republican tactics and how close

they are pushing us to the brink. may be listening, how is this going to go down? is the president really going to stick to what he said and stick to his guns? in that respect, i do think that's important for congress. >> we also saw a rebuke from new york corker say this is not the way we need to be doing this. we have kristen welker on the line in the briefing room right now with the president going to speak any minute now. what do you expect we'll hear from the president? >> reporter: well, i and that he will of course response to the vote that just occurred in the senate. they voted along party lines to continue funding the government through part of november. it is a clean bill, essentially meaning it will not touch the president's health care law at all. republicans have been fighting that. they wanted the spending measure to defund president obama's health care law. now it goes back to the house of

representatives and they will take it up tomorrow and debate this. and i'm told by my sources that they are really going to push to have some type of measure in the spending bill which scales back the president's health care law. back to you. >> thanks for that report. just to reiterate, the importance of that, the senate has not moved. it is controlled by democrats and while there was a lot of noiz about delays and cloture votes, the clean cr means they want to move forward with fighting the government at the sequester level cuts and the house wants something back. the other thing we'll see as we wait for the president to come out here today, beyond anything he says about foreign policy, syria, breakthroughs with negotiations at a higher level with iran, which is an implicit contrast, he'll argue to congress not doing its job and him doing his job on multiple fronts, the other piece of this is, the house republicans after making this noise, they are demanding some sort of

sweetener, might not be related to health care. might be as we heard some sources talk about a keystone pipe line reference or some other sweetener. we have to listen very closely to whether we hear a president obama who is shutting the door to the shutdown and i'm not doing anything or leaving it cracked open. there have been times before, particularly on tax policy where we saw this countdown and this game but in the end the white house gave a lot, to great criticism. that is what we have to hear between the lines. he's not going to change everything overnight. if it's cracked to some sort of deal, then you know, that will be something the republicans will seize on. >> let's go to luke russert in the thick of things on the hill. a lot of people are wondering, what will the tone be? who is he speaking to? what can he possibly say at this point to really change the game up on capitol hill? >> reporter: nothing. absolutely nothing. i mean, i think if anything the president is taking out his position to try to rally them to

his side. they don't listen to john boehner, surely aren't going to listen to president obama, unless he indicated the keystone pipeline but i don't think he would do such a thing. in terms of civil war they are having between the rauk us functions. we're putting the back and forth. the president will not negotiate, they should fund the clean bill that came from the senate. we thought a lot what can the house gop attach to the funding bill? what will it look like? will it be something that limits the government's ability to pay in to the benefits for workers here on capitol hill? an end to a medical device tax? we don't know what that looks like right now. whatever they do attach, will most likely lead to the government being shut down for some time. because just in the way the senate works. the parliamentary procedure there. i don't know what the president can say to appeal to the house

republican conference right now to get them to move in any way closer to a shutdown? it becomes at what point does boehner want to do something with folks or do they attempt a one to two week delay or attach something on and have the senate vote it down and attach a one or two-week extension and we come back to the fight closer to the debt limit. it's chaotic to say the least. >> are you sensing nervousness from the republican caucus about the potential for a shutdown and them being blamed as they were back in the '90s? >> reporter: from the establishment, sure. you have to understand, 94 of the house republicans, they come from romney's 60% plus districts, they don't care. they are fine either way this goes on. they can say what they want and there's not going to be a lot of repercussions against them. where you do see the worry is the more established wing of the party, worried about the brand moving forward. you sort of see -- i talked to folks associated with the former

bush white house still very much involved in how the republican party operates around the country in terms of getting out the vote and finances in the right place. they are very worried because they see the republican party's face become crews banging on the desk and reading dr. seuss and trying to damage government. the voices are at the back. no one cares to be honest. the folks running this right now club for growth, that type of mindset. until the gop leadership says away with you, we're going to go all in, have democratic support, that will continue to be the case. >> but you touched on the underlying fact that we have a deeply gerrymandered country where folks can go home to 60% romney districts and not worry. as long as we have that, we have perhaps an indefinite feature of this sort of brinksmanship,

because one party can go to washington and say i've constructed the other party and go home. others say that's what we sent you there to do. >> reporter: exactly. the house of representatives you'll have this draw-up until 2020. one of the most under reported story, how the gop swept the midterms of whaf they did in statehouses with a absolute political genius. they put money into the gover r governor's races and able to construct an unbelievable map that makes it hard for them not to lose the house of representatives. it's possible but it makes it very hard. i would say this is the new normal. and a lot of folks and republicans i've spoken to said this was most likely the new normal until something unbelievably catastrophic happens to our party like if we nominated rand paul and he lost 40 states. that's where we are right now for the republican brand in the house of representatives. >> aren't they right now at this moment contemplating doing something that catastrophic that

they could lose a virtually unlosable house? >> reporter: the shutdown could hurt them -- >> the debt ceiling fight is even worse. >> reporter: yes, if the debt limit -- if that was not renewed and you had an economic ka tras trow fee at the hands of the house conservative wing, that could in fact perhaps get the democrats in the house. that's what democrats think, steve israel sort of said that, that he believes that's where the best chance of winning back the house is. but from folks i've spoken to, they don't think mitch mcconnell and john boehner will do that. if you do not extend the debt limit, all of the new york republican money, that is going to say, hey, come on, guys, this is insane. we can't have this. you'll kill off our entire livelihoods there and that money, not as loud as heritage action money, still has a lot of power within republican politics. >> i'm curious, luke, how

frustrated senators like mccain and mcconnell are. we've seen kind of a fundamental shift in the senate where they are normally known as being the grown-ups in the room with the house. and you have the tea partyiers and cruz and paul and rubio who are now doing these quasifilibusters. what is the feeling from senator mccain and mcconnell how this is playing out? i can only imagine they are probably a bit frustrated? >> reporter: mitch mcconnell is fascinating, somebody who literally figured out the fiscal cliff issue the end of last year with joe biden in a room and got it down. he played the elder statesman role. he has not been out front in terms of these issues and it was not taken well in the mcconnell camp where he was actively opposing ted cruz during thinks quasi-filibuster, whatever you want to call it. guys like mcconnell and lamar

alexander, i go back to what i said earlier, they have been pushed to the side. the energy, the action, the juice, it's on the backs of the ted cruzes and mike lees and rand pauls. it's on the backs of the house of that conservative wing. and until those folks say stand up and say, you know what, we're going to join with democrats to pass some things and we're not going to be this blocking minority inses antly, it won't change. the fear is if you join with the democrats there, then you really as one gop official said, if we did that, we could be in the wilderness for 20 more years. >> that's absolutely right. i've been thinking a lot about tip o'neill because the chris matthews book coming out talking about reagan and tip o'neill. i tend to think gerrymandering is the heart of the problem. but what about the people? is john boehner a huge part of the problem? because boehner is not an analog

to tip o'neill as obama is analog to ronald reagan. he's letting this tea party caucus as we've all discussed here really run things. is the weakness of boehner as a speaker a huge part of the problem? >>. >> reporter: well, it's interesting, boehner's strategy has been to let the hot air out. he let's these guys scream and yell and beat their chest and takes them to the brink every single time. at the end of the day he's able to make the concession and say, look, i'm dealing with these folks in the house and they are not going to break on anything. you have to give me something or else we're in real trouble. in 2010 he said i got 90% of what i wanted. this is the leadership strategy and he doesn't care. if someone writes about him being the weakest in history, he laughs and says i'm trying to do the best job i can.

i don't see guys, a way forward for boehner on this one without democratic help and the question becomes when is he going to do it? he's really boxed in. >> as we stay here, we are awaiting the president coming out to give these remarks as we've been reporting on the government shutdown. as well as the standoff over the debt ceiling and krystal, something that jumps out to me, a lot of republican pressure has been threat after threat after threat without actually the complete arm ma geden, they are bailed out in parts over the debt ceiling and super committee. the reason this is so frequent is because they've never been the dog to catches the car and deal with it. one thing the president can speak to, he's been more than reasonable and gone more than halfway. now we're going to see what happens, right? in some senses, the responsibility of the democratic establishment in washington has been a political benefit for

those who would take hostages. >> absolutely. >> absolutely. the power goes to the hands of the person who is willing to blink last. and they have definitely looked like the crazier party. here we have the president going in. we will listen to his remarks now live. >> good afternoon, everybody. before i discuss the situation in congress, let me say a few things about two important opportunities in our foreign policy. just now i spoke on the phone with president rowhani of the islamic republic of iran. the two of us discussed our ongoing efforts to reach an agreement over iran's nuclear program. i reiterated to president rowhani what i said in new york, while there were surely be important obstacles to moving forward and success is by no means guaranteed, i believe we can reach a comprehensive solution. i've directed secretary kerry to continue pursuing this effort with the iranian government.

we had constructive discussions in new york with our partners, the european union, the united kingdom, france, germany and russia and china, together with the iranian foreign minister. going forward president rowhani and i directed our teams to continue working expeditiously in cooperation with the p5plus 1. we'll stay in touch with friends and allies in the region, including israel. we're mindful of the challenges ahead. the very fact that this was the first communications between and american airanian president sine 1979 underscores the deep mistrust between our countries and indicates the prospect of moving beyond that difficult history. i do believe there is a basis for resolution. iran's supreme leader has issued a fat wa against the development of nuclear weapons and president

rowhani indicated that iran will never develop nuclear weapons. i've made clear we respect the right of the iranian people to access peaceful nuclear energy in the context of iran meeting its obligations and the test will be meaning and transparent and ver fibl actions which can bring relief for the sanctions that are currently in place. resolving this issue could serve as a major step forward in a new relationship between the united states and the islamic republic of iran, one based on mutual interest and respect. it will also help facilitate a better relationship between iran and the international community and as well as others in the region. one that would help the iranian people fulfill their extraordinary potential and help us address other concerns that could bring greater peace and stability to the middle east. a path to a meaningful agreement will be difficult and at this point both sides have

significant concerns that will have to be overcome. i believe we've got a responsibility to pursue diplomacy and we have a unique opportunity to make progress with the new leadership in tehran, i also indicated my deep respect for the iranian people. this comes on the same day that we can accomplish a major diplomatic breakthrough on syria as the united nations security council will vote on a resolution that would require the assad regime to put its chemical weapons under international control. they can ultimately be destroyed. this binding resolution will ensure that the assad regime must keep its commitments or face consequences. we'll have to be vigilant in following through, this would be a significant victory for the international community and pursuing a better world. now, america's security and leadership don't just depend on our military strength or

alliances or our diplomacy. first and foremost, america's strength depends on a strong economy. where the middle class is growing and everyone who works hard has a chance to get ahead. let me say a few words about the situation that developed over the last few weeks on capitol hill. here at home, the united states congress has two pressing responsibilities, pass a budget on time and pay our bills on time. if congress chooses not to pass a budget by monday, the end of the fiscal year, they will shut down the government along with many vital services that the american people depend on. the good news is within the past couple of hours, the united states senate, democrats and republicans, acted responsibly by vote being to keep our government open and delivering the services the american people expect. now it's up to the republicans in the house of representatives to do the same.

i say that because obviously democrats have a great interest in making sure the vital services continue to help the american people. so far, the republicans in the house of representatives have refused to move forward. here's the thing, unlike the last time they threatened this course of action, this debate isn't really about deficits. in fak, our deficits are falling at the fastest pace that they have in 60 years. by the end of this year we will have cut our deficits by more than half since i took office. so that's not what this is about. in fact, if you've been following the discussion, the republicans in the house don't even make a pretense that's what this is about. instead the house republicans are so concerned about apiecing the tea parties they threatened

a shutdown unless i repeal the the affordable care act. i said yesterday, i'll repeat it. that's not going to happen. more than 100 million americans currently already have new benefits and protections under the law. on tuesday, about 40 million more americans will be able to finally buy affordable health care like anybody else. those marketplaces will be open for business on tuesday, no matter what, even if there's a government shutdown. that's a done deal. as i said before, if republicans have specific ideas on how to genuinely improve the law, rather than gut it, rather than delay it, rather than repeal it, i'm happy to work with them on that through the normal democratic processes. but that will not happen under the threat of a shutdown. so over the next three days, house republicans will have to

decide whether to join the senate and keep the government open, or shut it down because they can't get their way. on an issue that has nothing to do with the deficit. i realize that a lot of what's taking place right now is political grandstanding but this grandstanding has real effects on real people. if the government shuts down on tuesday, military personnel, including those risking their lives overseas for us right now, will not get paid on time. federal loans for rural communities, small business owners, families buying a home, will be frozen. i'm already starting to get letters from people worried that this will have an impact on them directly. critical research into life saving discoveries will be immediately halted. federal government has a large role across the country and touches the lives of millions of

people and those people will be harmed. and even the threat of a shutdown already is probably having a dampen effect on our economy. we saw that the last time these kinds of congress whose currently watching, i would encourage you to think about who you're hurting. there are probably young people in your office right now who came to work for you, without much pay, because they believe that public service was noble. you're preparing to send them home without a paycheck. you've got families with kids who serve their country in the federal government. and now they might have to plan how they're going to get by if you shut the government down. past shutdowns have disrupted the economy, and this shutdown would as well. it would throw a wremnch into te gears of our economy at a time when those gears have gained some traction. and that's why many republican

senators and many republican governors have urged republicans to knock it off, pass a budget, and move on. let's get this done. and this brings me to congress' second responsibility. once they vote to keep the government open, they also have to vote within the next couple of weeks to allow the treasury to pay the bills or the money that congress has already spent. i want to repeat. raising the debt ceiling is simply authorizing the treasury to pay for what congress has already authorized. failure to meet this responsibility would be far more dangerous than a government shutdown. in fact, it would be an economic shutdown with impacts not just here, but around the world. we don't fully understand what might happen, the dangers

involved, because no congress has ever actually threatened default. but we know it would have a profound, destabilizing effect on the entire economy. on the world economy. because america is the bedrock of world investment. the dollar is the reserve currency. the debt that is issued by the treasury is the foundation for our capital markets. that's why you don't fool with it. some republicans have suggested that unless i agree to an even longer list of demands, not just gutting the health care law, but cutting taxes for millionaires or rolling back rules on big banks and polluters, or other pet projects that they would

like to see, and they have been trying to get past over the last couple of years, that they would push the button, throw america into default for the first time in history, and risk throwing us back into recession. now i am willing to work with anybody who wants to have a serious conversation can about our fiscal future. i've demonstrated that with tax and entitlement programs that would bring down our long-term deficits. i have said in the past and will continue to say i'm willing to make a whole bunch of tough decisions, ones that may not be entirely welcomed by own party. we're not going to do this under the threat of blowing up the entire economy. i will not negotiate over congress' responsibility to pay the bills that have already been racked up. voting for the treasury to pay

america's bills is not a concession to me. that's not doing me a favor. that's simply carrying out the solemn responsibilities that come withholding office up there. i don't know how i can be more clear about this. nobody gets to threaten the full faith and credit of the united states just to extract political concessions. no one gets to hurt our economy and millions of innocent people just because there are a couple of laws that you do not like. it has not been done in the past. we're not going to start doing it now. i'm not going to start setting a precedent, not just for me, but for future presidents, where one chamber in congress can basically say each time there needs to be a vote to make sure treasury pays its bills, we're

not going to sign it unless our particular hobby horse gets advanced. imagine if you had a republican president and democratic speaker and the democratic speaker said we're not going to pass the debt ceiling unless we raise corporate taxes by 40%. or unless we pass background checks on guns. or whatever other list of agenda items democrats were interested in. does anybody actually think that we would be hearing from republicans that that was acceptable behavior? that's not how our constitutional system is designed. we're not going to do it. the american people have worked too hard to recover from a bunch of crises, several of them now over the last couple years inflicted by some of the same folks in congress that we're talking about now.

to see extremists in congress cause another crisis. and keep in mind, by the way, this whole thing has to do with keeping the government open for a few months. the continuing resolution, the -- the bill that's designed to avert a government shutdown basically just funds the government for another couple months, so we could be doing this all over again. i'm sure the american people are thrilled about that. and that's why we've got to break this cycle. our message to congress is this. do not shut down the government. do not shut down the economy. pass a budget on time. pay our bills on time. refocus on the everyday concerns of the american people. there will be differences between democrats and republicans, we can have all kinds of conversations about ow to resolve these differences.

there will be areas where we can work together, there will be areas where we disagree. but do not threaten to burn the house down simply because you haven't gotten 100% of your way. that's not how our democracy is supposed to work. everyday that this goes on is another day that we're not focused on doing what we need to be focused on, which is rebuilding this great country of ours so that our middle class is growing and everybody has got opportunity if they're willing to work hard. that's what i'm focused on. that's what congress should be focused on, as well. thank you very much, everybody. >> that was president obama, of course, speaking about the budget battles on the hill and speaking about the crisis in syria, putting, as expected, a lot of pressure on republicans, saying, quote, knock it off. step up your game, put some inside ideas on the table and

the job of congress is to pass a budget, pay the bills on time. if that's not done, the government will shut down on monday. the most interesting part of that whole moment with president obama was, though, his conversation with president rou hanny in iran, a huge step forward for the two countries that have not known trust for 30 years. >> yeah. and i've got to tell you, the iran piece very important and historic. i think what we heard from the president receipt now was a message of someone who gexpects the government to shut down. that's where the messaging was. it was a dark and down set of statements about republican irresponsibility. >> let's see what kristen welker in the briefing room has to say about that. kristen, are you there? >> yes, i am there, thank you. had a small technical difficulty there, but just fixed it. i think the headline, of course, this is the first time an american president has spoken to the leader of iran since 1979. you heard the president say that he wanted to come to a deal

expeditiously in terms of iran's nuclear program. the question, of course, is what does expeditiously mean. the president of iran says he would like to see a deal come together over the next several months. so, of course, this is something that we'll be tracking and we will try to put some specifics on what the president actually meant by expeditiously. the other big headline, president obama urging congressional republicans, the house, to pass this spending measure, which just passed through the senate this afternoon. the senate passing what is referred to as a clean spending bill, which means that it would only extend funding for the government through the middle of november. it does not include any other measures. of course, republicans have been fighting to get an amendment that would defund president obama's health care law. so now that goes back to the house. house republicans indicating they are not going to simply pass what the senate passed. that there might be some amendments that would scale back