Republicans Talk Tough Ahead of Debt TalksPublished: Tuesday, 12 Jul 2011 | 12:13 PM ET By: Reuters

Senate Republican leader Mitch McConnell said Tuesday that a long-term solution to the United States' fiscal problems was not likely as long as President Barack Obama remains in office.
Ahead of a third straight day of White House debt talks, Republicans ratcheted up pressure on Obama and his fellow Democrats who have blamed Republicans for failing to compromise for a deal to raise the debt ceiling and reduce the deficit.

"After years of discussions and months of negotiations, I have little question that as long as this president is in the Oval Office a real solution is probably unattainable," McConnell said on the Senate floor.
But he said Republicans will "do the responsible thing" and make sure the government does not default on its obligations on Aug. 2, when the Treasury Department has warned it will run out of money to pay the country's bills.
Failure to seal a deal by Aug. 2 could spook investors, causing U.S. interest rates to surge and stock prices to plummet, and could put the United States at risk of another recession, Treasury officials and private economists have warned.
RELATED LINKSUS Debt Deal: How to Kill Three Birds With One StoneObama, Lawmakers Regroup to Seek US Debt DealFor Boehner, Lofty Budget Goals Checked by RealityRepublicans have balked at raising the $14.3 trillion U.S. debt limit without steep spending cuts, while Democrats also want to increase revenue by eliminating tax breaks for the wealthy and corporations in some sectors such as the oil and gas industry.
After briefing restive Republicans House of Representatives members about the status of the debt talks, House Speaker John Boehner said he was actually optimistic about a deal. But he called the debt limit increase Obama's problem.
"Finding an agreement certainly has been elusive," Boehner told reporters. "The president talks a good game ... but can't quite pull the trigger" for a deal.
Despite the rhetoric, investors assume that Washington will ultimately avert a crisis. Yields fell to seven-month lows on the benchmark 10 year Treasury bond Tuesday morning, fueled by debt worries in Europe.
Third White House Meeting
Obama and top lawmakers from both parties will hold their third meeting in as many days at the White House at 3:45 p.m. as they try to to hammer out a deal.
Treasury Secretary Timothy Geithner, who has warned of huge risks if Congress fails to raise the debt ceiling, held firm to vows that the United States would not default. "Failure is not an option," he said ahead of Tuesday's talks.
Business leaders also sent a letter to Congress and the White House urging them to raise the borrowing level and agree on a long-term deficit reduction plan.
Copyright 2011 Thomson Reuters.