09:03
Tieng Anh Vui
US congressional leaders have failed to reach a breakthrough in ongoing negotiations to raise the nation's debt limit ahead of Thursday's deadline.
Weekend discussions between Senate Democratic and Republican leaders failed to break the stalemate.
A shutdown of the US government, also a result of the political gridlock, has now entered its third week.
US stock markets opened lower on Monday as officials warn of economic calamity should the US default on its debt.
Negotiations between Republican and Democrat Senate leaders continued on Sunday, with both sides reportedly awaiting the Monday opening of the financial markets to reassess their negotiating positions.
Democratic Senate Majority Leader Harry Reid described a phone call with Republican Senate leader Mitch McConnell as "productive", but the two did not reach a solution to raise the nation's $16.7 trillion (£10.5 trillion) borrowing limit as Thursday's deadline nears.
Overreaching
Congressional Democrats are now said to be using the looming debt ceiling deadline as leverage to push back against previously enacted cuts to the US government budget.
Those deep military and domestic spending cuts, known as the "sequester", went into effect in January 2013 after Democrats and Republicans failed to reach a budget compromise.
On Monday, Republican Senator Bob Corker said the Democrats were demanding too much.
"For about 48 hours now, the Democrats have overreached by wanting to spend more, unbelievably", he said in an interview with NBC's Today show.
"But I do sense that people are getting back on the right page here. And I do hope that by the end of the day we'll have an agreement that makes sense for our country."
Government and private sector analysts have warned for weeks of the dire consequences should Congress fail to reach an agreement on raising the nation's debt ceiling.
The US Treasury has been using what are called "extraordinary measures" to pay the nation's bills since the nation reached its current debt limit in May.
Those extraordinary measures will be exhausted by 17 October, US Treasury Secretary Jack Lew has said.
He has said that letting debt ceiling negotiations run too close to the deadline "could be very dangerous", while financial sector leaders have warned a default would "ripple" through the world economy.
On Sunday, the head of the International Monetary Fund said defaulting on the nation's debt could tip the world into another recession.
"If there is that degree of disruption, that lack of certainty, that lack of trust in the US signature, it would mean massive disruption the world over," Christine Lagarde said in an interview with NBC's Meet the Press.
'Extortion'
Congress and US President Barack Obama have also failed to reach an agreement regarding a partial government shutdown, now in its third week.
A wide swath of government services closed for business after Congress missed a 1 October deadline to pass a budget, with Congress unable to agree a law to keep the government funded.
Hundreds of thousands of federal employees were sent home and government offices closed.
Republicans refused to approve a new budget unless President Obama agreed to delay or eliminate the funding of the Affordable Care Act, his signature healthcare reform law of 2010.
Mr Obama has refused to budge on the matter, accusing Republicans of "extortion", in using the shutdown and the nation's debt limit as leverage in negotiations.
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