Box the vehicle in, but left just a bit of an opening here that this driver is going to exploit. But there you can see, Plainclothed Police officers who are responded to this, and there is the driver, finding just the smallest of a crack here to escape, but its just a momentary escape. You heard shots fired there, and then moments later, the whole scene comes to a close, and the female suspect is in the hospital being treated for injuries. More news next hour on Al Jazeera America. Its day three of the shutdown with no deal in sight. The growing economic deadlines and what it means for you. This is inside story from washington. A hello, im sheila mcvic car. The president took his message outside of the beltway today, and in congress there are no plans for further negotiation between the house and senate. Today well discuss the real economic and personal impacts of the partial Government Shutdown with the real possibility of a showdown on the debt ceiling, but we begin with lawmakers when the talks broke down on wednesday. In times like this americans expect their leaders to come together and try to resolve their differences. Were through playing these little games. It was a worthwhile meeting. Im glad it was held. We had shall we say some candid discussion. At some point we have got to allow the process that our founders gave us to work out. Thats not what our constitution had in mind that if you dont like something you threaten to shut down government. Its not that kind of a system. The president reiterated one more time tonight that he will not negotiate. We have got a divided government. What the speaker has to accept is, yes, for an answer. Every bill that ever passes in the congress is subject to another bill passing in the congress to amend it, and so if they dont like certain aspects of the Affordable Care act, they have every opportunity to bring anything to the floor to make whatever changes they want. But that should not be something that is a threat to whether government is open. All were asking for is a discussion and fairness for the American People under obamacare. I wish i would hope that the president and my democratic colleagues in the senate would listen to the American People and sit down and have a serious discussion about resolving these differences. The Sticking Point is still the Affordable Care act, and the democrats have made it clear that obamacare is not on the table. Joining us now from capitol hill is libby casey, where she is spending a whole heck of a lot of time. Libby what is the mood up there today . Were not seeing any advancement, really no change if you have your finger on the pulse of what is going on here. It is a lot of pr battles. You hear two names invoked a lot, republicans say its fault, and then speaker john boehner, a name that is very familiar up here on capitol hill, but not as familiar to everyone in their living rooms. So democrats are saying it is that guy that is holding up the process. We saw one of the pr battles today, House Republicans many wearing lab coats who are doctors or in the medical profession. They passed a bill last night, a select bill that would fund the National Institute of health, and congressman cantor said the senate should do the same. I believe senator reid must take up this legislation today for the sake of those children and their health. For five years president obama has care rid an i won. Its my way or the highway attitude, and he has not reached across the aisle to republicans, who were also elected to solve the major problems facing this country. The president s refusal to work in a bipartisan way has lead us to this shutdown. We must fix and restore the American Peoples faith and trust in our government. So republicans are going about piecemeal bills, but Senate Democrats and president obama say no, we cant just selectively fund the government, it has to be all or nothing, and then we can sit down and talk more. You were talk about Speaker Boehner a little bit earlier, those are counting house say if he were to take a vote to the house, that bill would indeed pass and this stalemate would break. Why is he not willing to do that . Yeah, this is so interesting. This is the has ert rule, named after a former speaker of the house who had this guideline if you dont have the imagine yourive to your caucus, so in this case the republicans who are going to get on board with the bill, then dont bring it to the floor. The question is can he stick to that guideline or would he bring something forward because thats one way to break this stalemate. But it would really hamper his power as speaker of the house. It could damage his credibility in the caucus, and look like they were collapsing or caving. So there has to be another route republicans say that he has to make to allow a bill to go forward. Im wondering also, we know the Public Opinion is pretty pbt up there on the hill, what are people hearing from their constituents . The phones must be ringing off the hook. Yeah, Public Opinion is so important, and both sides are hoping the other side will get blamed. So the phones are wringing off of the hook, but there are is nobody here to answer them because of the furloughs. Lets say you rep sent a conservative district in the deep south, you are largely hearing from your constituents. Keep at it, go get it. I hate the federal health care law. If you are a member of congress in other districts, you are hearing perhaps a more complicated message, everyone is hearing we want you all to get along and talk. Its dependant on where you live and where you come from, that determines who you blame, so members of congress are not necessarily hearing from their constituents yet. I think its your fault, and if you dont do something, im going to hold you responsible next election cycle. What is your guest on how long this is going to last . Were really not seeing a clear way forward at this point, and now that we have gone a few days,s no sign it is going to end any time soon. There is a question whether or not congress will even be in session this weekend if they can get anything done. It would be poor opticed if members of congress go home and furloughed workers are still without a paycheck. Something has got to give. Dont look to the Senate Democrat or the president s for any movement at this point, unless they come up with some reason why offering an olive branch could help them if the democrats get Something Else long term, otherwise it has to be the House Republicans that come up with some way forward whether its a clean funding bill that is the body to look at to see if there is a way out in the future. Thanks, libby. Were going to take a break, and when we come back, were going to continue our coverage of the partial Government Shutdown as the gridlock inside washington continues. This is inside story. On august 20th, Al Jazeera America introduced a new voice in journalism. Good evening everyone, welcome to al jazeera. Usa today says . Writes the columbia journalism review. And the daily beast says quality journalists once again on the air is a beautiful thing to behold. Al jazeera america, theres more to it. The government shuts down and Al Jazeera America covers all of it. From washinton politics, to the real impact on you. Theres harworking people that want to do their part. But the government isnt doing theirs. Coverage continues on Al Jazeera America. As reckless as a Government Shutdown is, as many people as are being hurt by a Government Shutdown, an economic shutdown that results from default would be dramatically worse. In a Government Shutdown, Social Security checks still go out on time. In an economic shutdown, if we dont raise the debt ceiling, they dont go out on time. In a Government Shutdown, disability benefits still arrive on time. In an economic shutdown, they dont. In a Government Shutdown, millions of americans not just federal workers, everybody faces real economic hardship. Welcome back to inside story. Thats president obama today at a Construction Company in rock vil, maryland, a superb of washington. We want to continue our discussion on the impact this is having on the real word and the economy. Joining us is adam, and back here in the studio, a usa reporter who focuses on congress and the treasury department. Turning to you first, richard, how great is the impact of this shutdown, and does it really matter how many days it goes on for . Well, lets look at the history. In recent years we have had a whole slew of shutdowns, lasting from one day to 21 days. The longterm impact of that is hard to see. Its not overwhelming. Much of what we need from the government continues as even the president has admitted. So i think this is 80 political theatrics of the two parties, each trying to appeal to their respective base. The republicans demonizing the government, and the democrats that the america will be helped with intervention. When the dust settles, well get on with our business. Adam hersh clearly in a macro sense not much, but for individuals . For individuals and in a macro sense i think this is a significant event for the economy. This is not just about the 800,000 Public Service workers who will be furloughed or the nationalna, people cant go to, but in our modern complex economy, the government plays a Critical Role in seeing that various Business Activities are care r carried out. We have fda inspectors who will not be able to certify food, we have faa inspectors who are part of the manufacturing process, and planes cant be built, we have people at the nih, scientists who could be discovering cures for cancer, so this is a real impact. Gregory, on the hill richard describes it at political three at tricks. Are they seeing it as a kind of political theater for which their constituents will forgive them. Each side obviously is expecting that the other side will get part of the blame, but the Public Opinion polls show that americans arent necessarily too sure about obamacare yet which is the issue that created all of this to begin with. But americans also are overwhelmingly by about twothirds opposed to actually shutting down the government to get to that policy aim. So there might be a little bit of poxes on both of their houses. Both sides agree that the other side is to blame, so what were seeing is that playing out with the house trying to pass a number of smaller spending measures, saying well pay for veterans, well pay for the district of columbia, well pay for cancer funding for those kids that need cancer treatments, but the senate keeps blocking each one of those, saying we want an entire spending package or nothing. Richard when you look at this game that is being played out, what is the signal being sent about the state of the american political body and the economy internationally to americas allies and those who are dependent on the American Economy . I think if i had to pinpoint the biggest danger in all of this, it goes as follows, for the last half of century, corporations, governments, and wealthy people around the world have parked significant portions of their wealth in the United States, whether its a bank account in new york or real estate on 5th avenue, they did that because they believed the United States was a secure, stable, safe place relative to the rest of the world to park their wealth. And it has had an enormous impact on the wellbeing of the American Economy. Every one of those people looks at the United States in the worse economic crisis since the Great Depression with a government incapable of coping with that problem, and now unable to function even in the normal ways, they are all going to reconsider what they thought the United States was, and if we were helped on the way up, we are going to be in serious trouble if that money and wealth begins to be pulled out, because they, like the American People are shaking their head in disbelief in how this government and political situation works. That is a big question, how healthy is the underlying economy . Do you think this could have an impact and also looking forward to the debt ceiling debate, could this have an effect on the economy in this is a very fragile economy not just because of the shutdown, but because we have had three years of a political push for spending cuts and austerity and cutting taxes for the wealthiest americans, and thats what has lead to the politics that have lead to the Government Shutdown right now. Its a culmination of the politics which has been taking the wind out of the sails of the economy. If we get the government up and operating, thats a good thing, but we still have a lot of challenges to make sure that the u. S. Economy is working for regular people. Gregory you cover the hill and also treasury, which may in fact be the same thing these days. Is there a difference of opinion do you think . Or what are you hearing from the treasury . The treasury of course works for the president , and the president s position is that congress should pass an increase in the debt limit and pass a spending bill to get the Government Back to work. Treasury has been trying to remind congress the past couple of weeks what the consequences of a debt limit breach would be. Thats the next faphase of this. This 16. 7 trillion debt ceiling. The law says the werent borrow anymore than that, but by october 17th were going to get to the limit and we need to raise our credit card limit essentially to be able to keep spending money. And that has more potential dire consequences. Today the treasury sent over a report to congress that looked at 2011, and even the debate of whether we were going to do it, took 22 off of the Consumer Confidence index, 17 off of the markets, it increased the cost of borrowing by about 1. 4 billion, but also the cost to you and me to borrow me for a mortgage, so the average the average mortgage payment during that time of uncertainty, went up 100 a month. So these are the things the treasury is trying to remind the congress of. Well take a short break and when we come back, well take a further peak over the fiscal cliff. There is no precedent for default. We have the most important economy in the world, payments have to go out to people. If money doesnt flow in, then money doesnt flow out, so we really havent seen this before, and im not anxious to be a part of the process that witnesses it. Thats Goldman Sachs ceo, and banc of america ceo. They were among financial leaders who met with the president at the white house on wednesday. Lets talk more now about what happens if we do have a debt fault, and richard, explain to me what is the debt ceiling limit and how do we get to this point . Well, the United States, unlike many countries has a peculiar political system to say the least. And not the least of its particular pee kul lairties is this. Even though the congress with the president decides in every Budget Discussion how much were going to raise in taxes and how much were going to spend knowing full well if you decide to spent more than you raise in taxes, you are then going to have to borrow the difference just like an individual who wants to spend more than he or she earns is going to have to borrow the difference. So everybody knew we were going to run out of money, at that point were going to have to borrow the money, but because our congress reserves the right to pass a law setting the limit to borrowing, the congress new when they agreed to spend more than it raised in taxes this year, that they would bump up against the limit, so if that limit isnt raised by the congress, they cant do the borrowing, and hence will not be able to do what the budget says the government is supposed to do. Both parties agreed to the budget. Both parties agreed to the relationship between spending and raising taxes, so in effect both parties and the president agreed that they would need to borrow, but one party has now decided not to give the permission to do the borrowing it voted would be necessary. Very strange, but if that ceiling isnt raised, and the government cant borrow, then they cant carry out the budget everybody has agreed to, and somebody who expected to be spent on, whether thats a business or individual or Foreign Government is going to discover that the money to pay what they expected and legally counted on will not be available, and then the question is who is not going to get spent on by the government if it cant borrow. And thats the default part of this thats right. Its possible not necessary but possible that the government would decide that one of the things it cant do, since it cant borrow the money it needs is pay back the people from whom it borrowed from in the past. If the u. S. Defaults what do people what does it then look like . How do other nations look at the United States . What happens inside the United States . Let me just say that professor offered one of the most enjoying descriptions of the debt ceiling that i have heard to date. So if we reach this point theres not going to be enough to pay the owners. This is going to be off of the map economically. This is going to be a problem bigger than the collapse we experienced five years ago during the great recession, and the reason is that the u. S. Government Treasury Bonds provide the backbone for the international economy. They are the reserves in banks, pension funds, Insurance Companies have requirements to hold assets in the class of u. S. Treasury bonds, of which there arent many other assets that they can own, and these provide the collateral for many financial trades. So if the government is forced to default, then this assets no longer will be as safe as the whole International Financial system expected them to be, and built the system around the safeness of these assets so Interest Rates are going to spike up, the credit markets could seize and were would be looking at severe disruption. This sounds so dire. It has never happened before. Is there really a risk in the current climate on the hill that they would actually contemplate not funding this. Well, as richard explained this is part of this system. This is goes back to 1917. The debt limit has been raised every time. When we have had democratic president s and republican president s. It has always gotten done. The difference is, one were in the middle of a shutdown where it didnt just get done, and also they are not even talking to each other. And thats why this spending bill is a prelude to this larger issue. Yes, it has gotten done before, will it get done this time . I think theres legitimate reason for uncertainty. Thats going to do it for us. Thank you for watching. Good night. vo china is expected to have the worlds biggest economy by 2016. Before then, it may also have the most billionaires. But what impact are these super rich having in china . And what do their prominence and flashy lifestyles say about the communist partys complicated attitude towards capitalism