0 hello again, you are back in the cnn news room. we want to welcome our viewers in the u.s. and around the world, we continue our live coverage of what happened in congress today, of course raising the debt ceiling and the government opening. a $24 billion hit to the american economy, according to s&p, the u.s. government is once again open for business. >> indeed, president obama signed the bill and opened the government, to avoid what could have been a catastrophic shutdown. >> it was approved by both majorities, in the house and senate. it will fund the government until january 15th. >> the plan would also extend the debt ceiling until february 7th. and in the end it made only a very small change to obama care. what sparked this crisis in the first place, including a profession for income verification. humans of thousands of federal workers off the job for two weeks, have been told to return to work later this morning. live, from our bureau in washington, d.c. erin, i guess the question here, is this a deal or delay? do we go through all of this again? because after all, it is all being put off for 90 days. >> reporter: yeah, john, it is somewhere in between, it is a deal, because of course, democrats have gotten largely what they wanted. we'll see the government reopen and avoid defaulting on the debt. but it is a delay in that it is only 90 days away until congress will have to revisit the debt ceiling. now, this is a routine vote as we've heard president obama say for the past few weeks now. this is the 13th time that congress has voted to raise the debt ceiling since 2001. i would point out that after the financial crisis in 2008, it happened three times within the next year. but we're seeing it in greater frequency that congress has to vote to raise the debt ceiling. this has become a bigger problem. and republicans have said they want to use the debt ceiling as leverage for the democrats to give them more concessions. but republicans are saying now this has not worked, the strategy of using the debt ceiling as leverage. >> they hijacked the plane, knowing how to land it. 16 days this went on for, it was all over obama care, they wanted to de-fund it. that didn't happen. what did the republicans get? >> very little. they didn't delay obama care. they didn't de-fund obama care. they also didn't repeal a small tax that would pay for a portion of obama care. they got one small fraud protection measure, and that was about it. now in terms of funding the government, they're funding it at a slightly lower level than democrats wanted. republicans got closer to the spending level than they wanted, but they got almost nothing in the deal. >> what was interesting in the house, the democrats voted -- republicans voted almost 2-1 no, a very wide margin there. what does it actually mean for the republican speaker of the house, john boehner, because there is a lot of pressure on him, a lot of speculation that his job may be in danger after all of this. >> that is true. there is a lot of speculation about that. but i will tell you today, earlier today, i guess yesterday at this point, the house speaker did get a standing ovation from republicans when they had a big meeting earlier. and a number of conservatives, who wanted him to fight the good fight, as they say, say he is safe. i would say just in general, both house republicans and really the american government at large looks back. listen to what president obama said earlier tonight about this very thing. >> i have got some thoughts about how we can move forward in the remainder of the year and stay focused on the job at hand. because there is a lot of work ahead of us, including our need to earn back the trust of the american people that has been lost over the last few weeks. >> obviously, the president is saying there that both democrats and republicans look terrible after this shutdown fight, john. >> yeah, that is true. you got that bit right. erin, it is 2:00 there in the morning in washington, we appreciate you staying with us. erin mcpike, there in washington, let's take a look at the markets, see how they're reacting, there we are, not a gleeful bounty, hong kong in barely positive territory, shanghai, just off a touch. wall street rallied on wednesday on the news that the deal was reached. the dow closing nearly 200 points, nearly 1.4%, the nasdaq gaining 1 and a quarter percent, the s&p, nearly a quarter of a%. so how is this affecting the grid lock around the world? jeff mcallister, thank you for joining us. we have heard from china and even russia. we heard from our european countries and heads of global financial organizations saying washington essentially get your house in order. >> well, they're certainly right. this is not an edifying spectacle for anybody. this reminds me of the old churchhill quote, america can be counted on to do the right thing after it exhausted all the other measures. what is the message people take away from it? that in the end, sanity prevails, or is it that the american system is in a bad way and it is not really a world super power behaving the way it ought to? >> and so these countries were telling the u.s. essentially to try to find a way to manage its economy and its government. not from crisis to crisis but in a smooth way that won't rattle the world. those countries, perhaps less likely to be willing to take advice from the united states in the future. >> i think that is right. i mean, this is a fundamentally -- what is american power in the modern era when china is rising, and other countries are becoming richer. soft power, the power of attraction is very important. obviously, the united states has huge assets, economically, culturally, and they don't go away because of one fight in congress. after all, there was a shutdown in 1995, followed by the monica lewinski scandal. and people don't remember that, and the u.s. is still a prosperous leading country. but if we couldn't get our act together, the president who could not go to an asian summit and preach about what he wants to preach about, because of all the fighting at home. it really does not send the kind of message that is in american long-term interest. and i think both sides recognize that in washington. the question is, how do you get out of this ditch? >> right, but it is a blip, though, right, because you talk about america's power, economic power, how much richer it is. even the next three countries, gdp combined, china included in that list. so it will take a long time to change, is this more symbolic than substantive? sn >> it is the right question, and the answer is, it depends on whether it happens again and again and again. this is just the underlying proponent of the grid lock, will the tactic work? the republican party has a favorable rating from 28% of americans, certainly they don't want to do this again. but all the dynamics that put this in place, the gerrymandering congressional districts where 90% of republicans win each time. and have to fear primary challenges on the right much more than they have to fear a challenge from a democrat. money in politics, now being raised by making a big noise on cable television rather than coming from the center. the rush limbaugh chamber, the echo chamber, where they think they're doing the right thing, when it turns out in this case it is not the case. those factors will still be there. will there be change in the elections next year. >> will republicans lose? i mean, that is the kind of thing that has to happen to really change the dynamics in the structure. the president looked stronger. it would be hard to the republicans to go back to this same tactic. >> how does this change the u.s.'s relationship with its allies, i'm talking about western europe or in big summits like the g 20 or g 8, or apec. does it have an impact? >> i think in the long run, it is not a proud place to be if you're an america like this. you just don't have as much clout. people do detect these things about soft power or image, and whether you look like you're on the decline. on the other hand, the u.s. is still what used to be called the indispensable nation, all the people that wanted to go to harvard -- you can say in 50 years maybe if you're writing the book, this is when you can see the american empire was on the decline. this is a pivotal moment, on the other hand, it may just turn out to be a blip, as you say. >> all right, jeff mcallister, thank you for joining us. >> we'll have more global reaction when we come back. >> not a proud place to be if you're an american, he says. >> so straight ahead, why one ceo says the world is laughing at washington. only going to get worse. >> plus, we'll hear from one of the richest men in the world on the u.s. debt crisis. >> it never should be used again, i think both parties should say this is ridiculous. 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