By . Daily Mail Reporter . Last updated at 2:57 PM on 30th July 2011 . In an unforgiving display of partisanship, the Republican-controlled House approved emergency legislation Friday night to avoid an unprecedented government default and Senate Democrats scuttled it less than two hours later in hopes of a better deal.'We are almost out of time' for a compromise, warned President Barack Obama as U.S. financial markets trembled at the prospect of economic chaos next week. The Dow Jones average fell for a sixth straight session.Lawmakers in both parties said they were determined to avoid a default, yet there was little evidence of progress — or even significant negotiations — on a compromise during a long day of intense political maneuvering.The House vote was 218-210, almost entirely along party lines, on a Republican-drafted bill to provide a quick $900 billion increase in U.S. borrowing authority — essential to allow the government to continue paying all its bills — along with $917 billion in cuts from federal spending. Team talk: House Speaker John Boehner speaks on Thursday with Jeb Henserling, far left, House Majority Leader Eric Cantor, second left, Renee Ellmers, third left, and House Majority Whip Kevin McCarthy, right . Update: President Barack Obama speaks on the U.S. debt ceiling talks at the White House today . That marked a concession to tea . party-backed conservatives and others in the rank and file who had . thwarted House Speaker John Boehner's attempt to pass the bill Thursday . night. 'Today we have a chance to end this debt limit crisis,' Boehner . declared, his endgame strategy upended by rebels within his own party. But the changes he made to the House GOP bill further alienated . Democrats. And they complicated prospects of a compromise that could . clear both houses and win Obama's signature by next Tuesday's deadline. At the other end of the Capitol, Senate Democrats rejected the measure . without so much as a debate. The vote was 59-41, with all Democrats, two . independents and six Republicans joining in opposition. Moments later, Senate Majority Leader Harry Reid, D-Nev., unveiled an . alternative that would cut spending by $2.4 trillion and raise the debt . limit by the same amount, enough to meet Obama's terms that it tide the . Treasury over until 2013. Reid invited Republicans to suggest changes, saying, "This is likely our last chance to save this nation from default." The Senate GOP leader, Mitch McConnell of Kentucky, accused Democrats of . 'rounding up 'no' votes to keep this crisis alive, and noted the House . had passed two bills to raise the debt limit and the Senate none. Busy: Trader Warren Meyers works on the floor of the New York Stock Exchange as U.S. stocks dropped for a fifth straight day on Friday after weak data on the economy and a setback on a debt deal discouraged investors . Worried faces: Traders work on the main trading floor of the New York Stock Exchange in Manhattan on Friday . The House, eager to return the Senate's favor rejecting the Boehner . bill, set a vote to reject Reid's proposal on Saturday. The Senate set a . test vote at about 1 a.m. on Sunday, a middle-of-the-night roll call . that underscored the limited time available to lawmakers. At the same time Reid appealed for bipartisanship, he and other party . leaders accused Boehner of caving in to extremists in the GOP ranks — . "the last holdouts of the tea party," Sen. Richard Durbin of Illinois . called them. Republicans conceded that the overnight delay had weakened Boehner's hand in the endgame with Obama and Senate Democrats. But the Ohio Republican drew applause from his rank and file when he . said the House, alone, had advanced legislation to cut deficits, and . that he had "stuck his neck out" in recent weeks in hopes of concluding a . sweeping deficit reduction deal with Obama. Fifteen Trillion Dollars: This graphic from WTFnoway.com shows the value of $15,000,000,000,000, which is around the value of the $14.3trillion debt limit . Boehner's measure would provide a quick $900 billion increase in . borrowing authority — essential for the U.S. to keep paying all its . bills after next Tuesday — and $917 billion in spending cuts. After the . bill's latest alteration, any future increases in the debt limit would . be contingent on Congress approving the constitutional amendment and . sending it to the states for ratification. "With conservatives insisting on the addition of a balanced-budget . amendment requirement, Speaker Boehner's bill will now cut, cap and . balance" federal spending, said Rep. Jeff Flake of Arizona as Friday's . scheduled vote approached. The White House called the bill a nonstarter. Press secretary Jay Carney . issued a statement that called it a "political exercise" and said . congressional leaders should turn their efforts to a compromise that . Obama can sign by Tuesday. The developments occurred one day after Boehner was forced to postpone a . vote in the House for fear the earlier version of his measure would . suffer a defeat. But by forcing a delay the conservative rebels upended . the leadership's strategy of making their bill the only one that could . clear Congress before a default and win Obama's reluctant signature. "Everybody acknowledges that because of the dust-up yesterday we've lost . some leverage," said Rep. Steven LaTourette, R-Ohio, an ally of the . speaker. The rebels said they were more worried about stemming the nation's steady rise of red ink. Rep. Jeff Landry, R-La., a, a first-term lawmaker, issued a statement saying his pressure had paid off. "The American people have strongly renewed their November calls of . bringing fiscal sanity to Washington. I am blessed to be a vehicle . driving their wishes to fruition," he said. "This plan is not a . Washington deal but a real solution to fundamentally change the way . Washington operates." Administration officials say that without legislation in place by . Tuesday, the Treasury will no longer be able to pay all its bills. The . result could inflict significant damage on the economy, they add, . causing interest rates to rise and financial markets to sink. Executives from the country's biggest banks met with U.S. Treasury . officials to discuss how debt auctions will be handled if Congress fails . to raise the borrowing limit before Tuesday's deadline. One Billion Dollars: This graphic from WTFnoway.com shows how $1,000,000,000 appears physically . One Hundred Million Dollars: This graphic from WTFnoway.com shows $100,000,000 in physical form . But Carney said the administration did not plan to provide the public . with details Friday on how the government will prioritize payments. The day's economic news wasn't very upbeat to begin with — an economy . that grew at an annual rate of only 1.3 percent in the second quarter of . the year. The Dow Jones industrial average suffered through a sixth straight day . of losses, and bond yields fell as investors sought safer investments in . the event of a default. At the White House, Obama cited the potential toll on the economy as he urged lawmakers to find a way out of gridlock. He said that for all the partisanship, the two sides were not that far . apart. Both agree on initial spending cuts to take effect in exchange . for an increase in the debt limit, he said, as well as on a way to . consider additional reductions in government benefit programs in the . coming months. Hands out: House Minority Leader Nancy Pelosi speaks about the debt ceiling and budget negotiations in Washington D.C. on Thursday, stating that the delay in decision-making 'must end now' My way: Democratic Leader Harry Reid's plan, backed by President Obama, would cut $2.2 trillion from the deficit over 10 years without raising taxes and extend the debt ceiling through next year . "And if we need to put in place some kind of enforcement mechanism to . hold us all accountable for making these reforms, I'll support that, . too, if it's done in a smart and balanced way," he said. That went to the crux of the conflict — his insistence that Congress . raise the government's borrowing authority by enough to avoid a repeat . of the current crisis during the heat of the 2012 election campaigns. Republicans have resisted, accusing him of injecting purely political considerations into the debt limit negotiations. But Boehner's failure to line up the votes for his legislation Thursday night seemed to embolden Democrats. Obama asked his 9.4 million followers on Twitter to send tweets to Republican lawmakers. Poor form: This graph shows how the U.S. economy barely grew at all in the first six months of the year . Time running out: International Monetary Fund chief Christine Lagarde, left, has warned of the risks if Congress fails to act - and Barack Obama, right, knows that a debt default would permanent scar his presidency .
Just four days remain to avoid default next Tuesday .
World Bank President .
Robert Zoellick slams U.S. for playing with .
fire .
Economy expanded at annual rate of only 1.3 per cent in the spring .
Wall Street markets have worst week of 2011 but post smaller losses today .
Obama's job approval rating slumps to personal low of 40 per cent .
By . Daily Mail Reporter . Last updated at 2:57 PM on 30th July 2011 . In an unforgiving display of partisanship, the Republican-controlled House approved emergency legislation Friday night to avoid an unprecedented government default and Senate Democrats scuttled it less than two hours later in hopes of a better deal.'We are almost out of time' for a compromise, warned President Barack Obama as U.S. financial markets trembled at the prospect of economic chaos next week. The Dow Jones average fell for a sixth straight session.Lawmakers in both parties said they were determined to avoid a default, yet there was little evidence of progress — or even significant negotiations — on a compromise during a long day of intense political maneuvering.The House vote was 218-210, almost entirely along party lines, on a Republican-drafted bill to provide a quick $900 billion increase in U.S. borrowing authority — essential to allow the government to continue paying all its bills — along with $917 billion in cuts from federal spending. Team talk: House Speaker John Boehner speaks on Thursday with Jeb Henserling, far left, House Majority Leader Eric Cantor, second left, Renee Ellmers, third left, and House Majority Whip Kevin McCarthy, right . Update: President Barack Obama speaks on the U.S. debt ceiling talks at the White House today . That marked a concession to tea . party-backed conservatives and others in the rank and file who had . thwarted House Speaker John Boehner's attempt to pass the bill Thursday . night. 'Today we have a chance to end this debt limit crisis,' Boehner . declared, his endgame strategy upended by rebels within his own party. But the changes he made to the House GOP bill further alienated . Democrats. And they complicated prospects of a compromise that could . clear both houses and win Obama's signature by next Tuesday's deadline. At the other end of the Capitol, Senate Democrats rejected the measure . without so much as a debate. The vote was 59-41, with all Democrats, two . independents and six Republicans joining in opposition. Moments later, Senate Majority Leader Harry Reid, D-Nev., unveiled an . alternative that would cut spending by $2.4 trillion and raise the debt . limit by the same amount, enough to meet Obama's terms that it tide the . Treasury over until 2013. Reid invited Republicans to suggest changes, saying, "This is likely our last chance to save this nation from default." The Senate GOP leader, Mitch McConnell of Kentucky, accused Democrats of . 'rounding up 'no' votes to keep this crisis alive, and noted the House . had passed two bills to raise the debt limit and the Senate none. Busy: Trader Warren Meyers works on the floor of the New York Stock Exchange as U.S. stocks dropped for a fifth straight day on Friday after weak data on the economy and a setback on a debt deal discouraged investors . Worried faces: Traders work on the main trading floor of the New York Stock Exchange in Manhattan on Friday . The House, eager to return the Senate's favor rejecting the Boehner . bill, set a vote to reject Reid's proposal on Saturday. The Senate set a . test vote at about 1 a.m. on Sunday, a middle-of-the-night roll call . that underscored the limited time available to lawmakers. At the same time Reid appealed for bipartisanship, he and other party . leaders accused Boehner of caving in to extremists in the GOP ranks — . "the last holdouts of the tea party," Sen. Richard Durbin of Illinois . called them. Republicans conceded that the overnight delay had weakened Boehner's hand in the endgame with Obama and Senate Democrats. But the Ohio Republican drew applause from his rank and file when he . said the House, alone, had advanced legislation to cut deficits, and . that he had "stuck his neck out" in recent weeks in hopes of concluding a . sweeping deficit reduction deal with Obama. Fifteen Trillion Dollars: This graphic from WTFnoway.com shows the value of $15,000,000,000,000, which is around the value of the $14.3trillion debt limit . Boehner's measure would provide a quick $900 billion increase in . borrowing authority — essential for the U.S. to keep paying all its . bills after next Tuesday — and $917 billion in spending cuts. After the . bill's latest alteration, any future increases in the debt limit would . be contingent on Congress approving the constitutional amendment and . sending it to the states for ratification. "With conservatives insisting on the addition of a balanced-budget . amendment requirement, Speaker Boehner's bill will now cut, cap and . balance" federal spending, said Rep. Jeff Flake of Arizona as Friday's . scheduled vote approached. The White House called the bill a nonstarter. Press secretary Jay Carney . issued a statement that called it a "political exercise" and said . congressional leaders should turn their efforts to a compromise that . Obama can sign by Tuesday. The developments occurred one day after Boehner was forced to postpone a . vote in the House for fear the earlier version of his measure would . suffer a defeat. But by forcing a delay the conservative rebels upended . the leadership's strategy of making their bill the only one that could . clear Congress before a default and win Obama's reluctant signature. "Everybody acknowledges that because of the dust-up yesterday we've lost . some leverage," said Rep. Steven LaTourette, R-Ohio, an ally of the . speaker. The rebels said they were more worried about stemming the nation's steady rise of red ink. Rep. Jeff Landry, R-La., a, a first-term lawmaker, issued a statement saying his pressure had paid off. "The American people have strongly renewed their November calls of . bringing fiscal sanity to Washington. I am blessed to be a vehicle . driving their wishes to fruition," he said. "This plan is not a . Washington deal but a real solution to fundamentally change the way . Washington operates." Administration officials say that without legislation in place by . Tuesday, the Treasury will no longer be able to pay all its bills. The . result could inflict significant damage on the economy, they add, . causing interest rates to rise and financial markets to sink. Executives from the country's biggest banks met with U.S. Treasury . officials to discuss how debt auctions will be handled if Congress fails . to raise the borrowing limit before Tuesday's deadline. One Billion Dollars: This graphic from WTFnoway.com shows how $1,000,000,000 appears physically . One Hundred Million Dollars: This graphic from WTFnoway.com shows $100,000,000 in physical form . But Carney said the administration did not plan to provide the public . with details Friday on how the government will prioritize payments. The day's economic news wasn't very upbeat to begin with — an economy . that grew at an annual rate of only 1.3 percent in the second quarter of . the year. The Dow Jones industrial average suffered through a sixth straight day . of losses, and bond yields fell as investors sought safer investments in . the event of a default. At the White House, Obama cited the potential toll on the economy as he urged lawmakers to find a way out of gridlock. He said that for all the partisanship, the two sides were not that far . apart. Both agree on initial spending cuts to take effect in exchange . for an increase in the debt limit, he said, as well as on a way to . consider additional reductions in government benefit programs in the . coming months. Hands out: House Minority Leader Nancy Pelosi speaks about the debt ceiling and budget negotiations in Washington D.C. on Thursday, stating that the delay in decision-making 'must end now' My way: Democratic Leader Harry Reid's plan, backed by President Obama, would cut $2.2 trillion from the deficit over 10 years without raising taxes and extend the debt ceiling through next year . "And if we need to put in place some kind of enforcement mechanism to . hold us all accountable for making these reforms, I'll support that, . too, if it's done in a smart and balanced way," he said. That went to the crux of the conflict — his insistence that Congress . raise the government's borrowing authority by enough to avoid a repeat . of the current crisis during the heat of the 2012 election campaigns. Republicans have resisted, accusing him of injecting purely political considerations into the debt limit negotiations. But Boehner's failure to line up the votes for his legislation Thursday night seemed to embolden Democrats. Obama asked his 9.4 million followers on Twitter to send tweets to Republican lawmakers. Poor form: This graph shows how the U.S. economy barely grew at all in the first six months of the year . Time running out: International Monetary Fund chief Christine Lagarde, left, has warned of the risks if Congress fails to act - and Barack Obama, right, knows that a debt default would permanent scar his presidency .
out of time' for a compromise, warned President Barack Obama as U.S. financial markets trembled determined to avoid a default, yet there was Boehner's hand in the endgame with Obama and keep paying all its . bills after next Tuesday — Obama's reluctant signature. "Everybody an economy . that grew at an annual rate of only