We begin tonight with the high-stakes showdown over the economy. The nation faces a possible catastrophic default if Democrats and Republicans can’t agree on spending limits before the June deadline. If a deal can’t be made, a default would mean that the government would run out of money and could pause military salaries, Medicare and Social Security payments. Republicans walked out of talks earlier today, blaming the White House for being quote “unreasonable”. The White House said both sides must be willing to compromise. But late today, news that both sides will return to the table and work late into the night as House Leader K.M expressed his frustration with the White House. The president is set to return to Washington on Sunday, cutting short his overseas trip in hopes of finalizing an agreement before the deadline.

An ominous sign less than two weeks before a possible US default. Republican negotiators walking out on talks with White House officials who then departed too. House Speaker K.M said the two sides are at an impasse. The sticking point is government spending. In exchange for raising the nation’s borrowing limit, House Republicans want to impose caps that amount to an across-the-board 13% cut in government spending. The White House says it is open to some cuts, and that an agreement is still possible if both sides recognize that neither side will get everything it wants. Unless Congress acts, the US will default on its deadline as soon as June 1st, an outcome widely viewed as an economic calamity. The talks may be back on, but tonight, Speaker M is still insisting the government can’t spend anymore money than it did last year. And the White House is unlikely to go for that. And members of both parties are urging their leaders not give too much so the situation is still in major flux.