WHITE HOUSE

Republican leaders will scramble to rescue their budget deficit-cutting plan on Friday after conservatives mounted a rebellion that heaped uncertainty on efforts to avert a catastrophic debt default.

Urgent efforts to avoid an unprecedented U.S. debt default suffered a new blow on Thursday when some fiscally hardline Republicans blocked a budget deficit plan proposed by their own congressional leaders.

A Republican deficit reduction plan headed for two major votes in Congress on Thursday and its expected demise could force a compromise to avert an imminent and unprecedented debt default.

A Republican deficit reduction plan headed for two major votes in the U.S. Congress on Thursday and its expected demise could force a bipartisan compromise to avert an unprecedented debt default.

The White House is touting a new government analysis that anticipates health care costs consuming a growing share of the nation's GDP, pointing to the fact that the new Affordable Care Act will have a minimal impact on the rising costs.

Sends him a link to Rick Astley video

Talk about spinning wheels, Congressional Democrats and Republicans, incredibly, made no progress Thursday toward raising the debt ceiling, even as a U.S. default nears on Tuesday.

The White House said on Thursday it was "pretty clear" what a compromise between Republicans and Democrats would look like to reduce the deficit and lift the debt ceiling by an August 2 deadline.

Republican presidential front-runner Mitt Romney has been on a glide path toward the 2012 primary elections, serving up a steady diet of soundbites and campaign material attacking President Barack Obama on jobs and the economy.

A government analysis predicted that spending on health care will steadily increases over the next decade, a projection that the White House said vindicated the Affordable Care Act because, despite a large increase in those with health insurance, the increase would be only slightly affected by the new health care law.

Continually rising health care costs will account for one fifth of America's gross domestic product by 2020, a trend that will be driven only slightly by the Affordable Care Act, according to government analysis.

U.S. visa restrictions on Russian officials linked to the death of hedge fund lawyer Sergei Magnitsky could become a "serious irritant" in bilateral relations and provoke a response from Moscow, Russia's Foreign Ministry said on Wednesday.

The United States will be "running on fumes" if its debt limit is not raised by August 2, the White House said on Wednesday, as it sought to kill talk that this was not a real deadline to strike a deficit deal.

Chief executives from the nation's largest financial firms on Thursday pressured the White House and Congress to reach a deal on the debt ceiling and deficit reduction, saying the consequences of inaction "would be very grave."

Debt talks in Washington are stalled, and leaders Boehner and Obama would be wise to learn a lesson from Bill Clinton and Trent Lott.

A bill to cut the deficit faced a nail-bitingly close vote in Congress on Thursday as the top Republican lawmaker sought to quell an internal revolt and push his plan to avoid a ruinous default.

Toronto's main stock index plunged more than 2 percent on Wednesday to its lowest point this month as weak U.S. data and a looming deadline for raising the U.S. debt ceiling sent investors searching for safety.

There's no way to sugarcoat it: financial markets have started to react to the possibility that the U.S. Government might default. Democrats and Republicans in Washington appear to be no closer to a debt deal Thursday than they were last week -- and a damaging default is now staring the nation -- and global markets -- in the face.

The operator of the Nasdaq Stock Market is "under constant attack" from would-be hackers and will spend more on security as a result, its top executive said.

President Barack Obama's credibility as a leader hangs in the balance along with America's gold-plated credit rating as he strives to break a debt impasse with Republicans and avoid a ruinous default.

Gold prices rose to an all-time record in New York to touch $1623.70 as investors weighed in the possibility of a debt default in the U.S.