patty culhane explains. >> hello everybody. >> u.s. president barack obama on the road with the message. shutting down the u.s. government is one thing. the next big thing is the entire world. >> if we screw up, everybody gets screwed up. the whole world will have problems. which is why generally nobody's ever thought to actually threaten not to pay our bills. it would be the height of irresponsibility. >> but that is what the republican controlled house is threatening. to refuse to allow the u.s. to borrow any more money unless the president greez to agrees to af demands. slow down his health care law to name a few. in about two weeks that means the u.s. government won't have enough cash to pay its bills. which means i could decide to default on its dead. the head of the fed: >> could very seriously damage not only the u.s. economy but also the entire global economy. >> if the u.s. defaults its debt some possible outcomes. stock markets panic. the value of the dollar plum the plummets. banks stop lending money. economist irene foster

patty culhane, al jazeera, washington. >>> at least 15 people have been killed in a suicide bomb attack in northern iraq. the bomber detonated a truck packed with explosives in the village in nineveh province. >>> in egypt a new protest law is being reviewed by the interim president. it's already been approved by the cabinet. the most contentious parts state protesters must ask in writing for permission from their local police stations at least 24 hours before a protest. another article gives the ministry and all senior police the authority to cancel, postpone or change the venue of protests. finally, the government has the power to designate pro tess-free areas around state or government premises. joins me live from london is a senior lecturer in islamic studies at kings college. while you see this draft or proposal, is it a step towards beryl public order or more oppression? >> if you read it against the background of what has conspired over the last couple of months, it is, i think, to be greeted with a fair degree of suspicion. there are some stipulations that are in effect everywhe

al jazeera patty culhane joins us live from washington. >> reporter: it was some sort of kickback scheme that services navy ships. it was overbilling the navy, and these two navy officers are accused of sending ships to certain ports where the company would win the contract. the ncis agent would tip off the company if there was a criminal investigation. they believe there were several times they did that, because they have all the e-mail where he alleges to have done that. they've arrested all five people, two people from the company. in exchange they say what these navy officers got in return was prostitutes while they were in as ia and travels arranged and in one case of tickets to a lady gaga concert. >> what they're accused of, and it amounts to tickets. wow. what's next? >> reporter: these five will face various charges and could see prison time. it seems likely that others will be charged because the charging touments list unnamed navy officials, so more could be arrested. the navy isn't commenting saying it's an ongoing investigation. the $200 million worth of contracts with the n

patty cole culhane reports. >> reporter: this is how he passes time, playing cards and having spirited conversations with friends in this park not far from capitol hill. for him, he says these days that seems like a world away. this is his world. >> i got a daughter. my daughter just feeds me. i go by there. >> reporter: his social security check barely enough to pay rent, medical bills and food, and now it is possible he won't get that money in the coming days. he's not alone here. all federal funding could be put on hold while lawmakers fight over borrowing any more money in order to pay all of the country's bills. they begin running out of options on october 17th. >> i'm on a fixed income, and i pay half of my income towards rent. >> i don't have no income. i'm too hold to work and no income. you know, what's more to say? >> reporter: what happens on october 17th? administration officials say they'll have about $30 billion cash on hand, and that's when some money will come in, but other money will start going out. >> unfortunately, the treasury can't make choices about who it is goi

the two leaders met at the white house, where they promised to cooperate on security issues, patty culhane has the details. the usual words of friendship, cooperation and commitment policemeninged in the oval office. this handshake could symbolise more. pakistan and the u.s. have barely been on speaking terms since the upannounced raid that killed osama bin laden in pakistan more than two years ago, and nato killed more than 24 pakistan troops leading to aid being cut off. the traffic and aid flowing again. it was evident in this meeting there's a huge source of tension - u.s. drone strikes. >> i brought up the issue of drones in our meeting, emphasising the need for answered to such strikes. >> the president didn't talk strewns, but when the national securie vazor, sartaj aziz talked to jazz, he indicated that the president gave assurances behind the scenes. >> they said they had largely accompanied their targets of key figures to target. now they have tapered off. probably once the remaining targets are met. >> he wouldn't go further and spell out what promises were made. experts say wit

as patty culhane reports both leaders discussed ways of improving the two nations strained relationship. >> the usual words of friendship cooperation and commitment pledged in the oval office. this handshake could symbolise more. pakistan and the u.s. have barely been on speaking terms since the unannounced raids that killed osama bin laden, and civilian troops killed. that led to aid being cut off. the aid is now flowing. it's evident in the meeting there's a source of tension - u.s. drone sites. >> i also brought up the issue of drones in our meeting, emphasising the need to an end to such strikes. >> the president didn't talk drones, but when sartaj aziz, the security advisor of pakistan, talked to al jazeera, he indicated the president gave reassurances behind the scenes. >> they said they we have largely accompanied our targets of the key figures to be targeted and they have tapered off and probably once the remaining few targets are met. >> he would not go further and spell out what promises were made. experts say with the deadline approaching for u.s. troops to leave afghanistan,

. >> patty culhane has a look at what is ahead. >> there were more than a few photoops to mark the reopening of the federal government. as the streets of washington dc filled up with workers, tourist spots reopened and federal money flowed again. >> found it. >> perhaps no one captured the emotions of the moment more than abigail vogt. >> happy. >> she's terminally ill. her father counts on his veterans' benefits to pay for care. >> some talk about poll numbers. >> president obama echoed the country's record level of anger. >> there are no winners here. the last few weeks inflicted completely unnecessary damage on the economy. >> and it's not over. republicans and democrats have given themselves a couple of months to come up with a long-term budget deal. the negotiators don't sound optimistic. >> talking doesn't guarantee success. if you don't get together you can't move forward. >> it's not clear how the republicans who control the house will move forward. the latest crisis was created by conservative members, called the tea party, it seems they are unlikely to change tactics. >> people tha

patty culhane has more from washington, d.c. >> reporter: another day passes with the u.s. government partially shutdown, and another day passes and the u.s. is closer to possibly defaulting on the debt. the leadership, both the republicans in the house and the president here, are not necessarily sitting down to negotiate. instead, they're fighting it out in front of the cameras. >> a decision to actually go through with it, to actually permit default, according to many ceos and economists would be, and i'm quoting here, insane, catastrophic, chaos. these are some of the more polite words. warren buffett likened the default to a nuclear bomb, a weapon too horrible to use. it would interrupt markets and undermine the world's confidence in america as the bedrock of the global economy. it might permanently increase our borrowing costs. >> this isn't about me and frankly it's not about republicans. this is about saving the future for our kids and our grandkids. the only way this is going to happen is to, in fact, have a conversation. so it's time to have that conversation. not