World fears US default, Obama warns

WASHINGTON, D.C.: President Barack Obama warned on Tuesday (Wednesday in Manila) that world leaders were nervous Republicans would “blow up” the United States (US) economy, and vowed not to budge on his demand for the debt ceiling to be lifted without conditions.

But House Speaker John Boehner insisted there would be no “unconditional surrender” from Republicans and said Congress would only allow more US borrowing if Obama agrees to cut spending.