WASHINGTON (Reuters) – With time quickly running out to raise the U.S. debt ceiling, the Obama administration is turning to biblical rhetoric to underscore the disastrous consequences if the United States defaults.

For weeks Treasury Secretary Timothy Geithner and other administration officials have been warning of an economic “catastrophe” if the $14.3 trillion debt ceiling, which caps the amount Washington can borrow, is not raised by August 2.

Merriam-Webster dictionary defines catastrophe as “a momentous tragic event ranging from extreme misfortune to utter overthrow or ruin.”

That definition appears to chime with the view of most economists, who agree that a U.S. default on its obligations would plunge the United States into a new recession and send shockwaves through international financial markets.

In interviews, speeches and news conferences, administration officials have used the word again and again. But instead of scaring Republicans into action and breaking deadlocked debt talks it has had the opposite effect.

Republican lawmakers accuse the Obama administration of scaremongering and many refuse to budge from their firm belief that a default will not happen, that the United States can keep paying its creditors simply by cutting back on spending.

Americans also do not appear to share the Obama administration’s sense of doom. Polls show a majority of Americans are happy for the debt ceiling not to be raised, although its not clear that those being surveyed are fully aware of the consequences of such a step.

WASHINGTON (Reuters) – President Barack Obama faces a crisis in the Middle East and it’s not just Libya. Some 2,400 miles (4,000 km) farther away in Yemen, Washington may soon lose a crucial ally in its war against al Qaeda.

President Ali Abdullah Saleh, in power for three decades, has allowed U.S. forces to conduct clandestine operations, including unmanned aerial drone strikes, against a Yemeni offshoot of al Qaeda that American officials say poses a profound threat to U.S. national security.

Now, after weeks of unrelenting anti-government protests, violent crackdowns and defections among the ruling elite, Saleh is under pressure to step down now and there are fears Yemen could break apart.

Libya may be dominating headlines but it is not a strategic priority for Obama in the war against terrorism, as Yemen is. One of his greatest fears is another Sept. 11-style al Qaeda attack on U.S. soil, and Yemen is a possible launchpad.

While the U.S. military is reluctantly spearheading a Western air campaign against Muammar Gaddafi’s forces in Libya, U.S. counter-terrorism officials stress that the most pressing issue for the United States is the potential collapse of Yemen, which could jeopardize efforts to stop al Qaeda using the country as a safe haven.

The Yemen group, al Qaeda in the Arabian Peninsula, claimed responsibility for a failed Christmas Day attack in 2009 aboard a U.S. airliner and an attempt in October to blow up two U.S.-bound cargo planes with parcels packed with explosives.

Defense Secretary Robert Gates said on Tuesday the United States was alarmed about the instability in Yemen — which borders Saudi Arabia, the world’s biggest oil exporter — and its potential impact on the fight against militants.

WASHINGTON, March 10 (Reuters) – Libyan rebels have lost momentum and are not likely to dislodge Muammar Gaddafi from power, top U.S. intelligence officials said on Thursday as Washington backed further away from any military action.

The White House said the United States would send civilian disaster relief teams to rebel-held eastern Libya to help with humanitarian efforts but stressed they would not be accompanied by military or security personnel.

As Washington, NATO and the United Nations search for the best way forward, Secretary of State Hillary Clinton said she would meet members of Libya’s opposition groups but warned of “a situation whose consequences are unforeseeable” if the United States were to act on its own. [ID:nN10137653]

Critics of the Obama administration’s stance on Libya are pushing for more forceful intervention, including direct military aid to outgunned rebel groups made up of enthusiastic but ill-trained civilians and dissident soldiers.

Obama has scheduled a news conference on Friday at 11:15 a.m. EST (1615 GMT). The White House said he would address issues including rising energy prices. He is certain to face questions about the turmoil in Libya.

The top U.S. spy official, noting Gaddafi’s forces were better equipped and disciplined than the opposition, said eventually “the regime will prevail.”

National Intelligence Director James Clapper’s comments at a Senate hearing caught the White House off guard and led one Republican lawmaker to call for his dismissal for “undercutting” U.S. efforts to remove Gaddafi.

WASHINGTON (Reuters) – The top U.S. spy chief said Thursday that better-equipped forces loyal to Libyan leader Muammar Gaddafi were likely to prevail in the long run against rebels fighting to end his 41-year rule.

National Intelligence Director James Clapper gave his assessment as the United States and its NATO allies debated in Brussels over how to support Libyan opposition groups who have suffered a series of military setbacks.

Clapper, who oversees all 16 U.S. intelligence agencies, told U.S. lawmakers the rebels, who include civilians and dissident military units, were in for a “tough roll.”

He told the Senate Armed Services Committee that Gaddafi’s forces were better equipped and had more logistical resources, and “over longer-term, that the regime will prevail.”

Military analysts say the rebels, although relatively well armed, cannot match the firepower of Gaddafi’s forces and lack the training to use the weapons they have seized from weapons depots. They are also disorganized and fragmented, with little real leadership.

“Gaddafi intentionally designed the military so that those select units loyal to him are the most luxuriously equipped and (are) the best-trained and that is having a telling effect with the rebels,” Clapper said.

“We believe that Gaddafi is in this for the long haul,” he said. “He appears to be hunkering down for the duration.”

WASHINGTON, March 9 (Reuters) – The White House on Wednesday strongly defended its response to the turmoil in Libya, insisting it has taken “dramatic action” and rebutting criticism that its consensus-based approach is too cautious.

As President Barack Obama’s top advisers met to debate what to do next, Muammar Gaddafi’s forces halted a rebel advance in the east of the oil-producing North African country and opposition forces suffered setbacks in the west.

A range of options were on the table in the White House situation room, including a “no-fly” zone to ground Gaddafi’s warplanes, although U.S. Defense Secretary Robert Gates has already warned of the difficulties of such an action.

With Libyan rebels fragmented and disorganized and Gaddafi’s forces successfully counter-attacking, the Obama administration has been struggling to craft a strategy that forces Gaddafi from power without entangling the United States in a new war in the Muslim world.

Despite its fear that Libya could become what Secretary of State Hillary Clinton last week called a “giant Somalia,” Washington is reluctant to intervene militarily in a messy civil war, especially since the United Nations, NATO and countries in the region are divided on what should be done.

White House spokesman Jay Carney dismissed suggestions that Washington had failed to act with sufficient urgency.

“There has never been a situation where the international community, with leadership by the United States, has acted as quickly as it has to respond to this kind of situation,” he said.

WASHINGTON (Reuters) – President Barack Obama’s top aides were due to meet on Libya on Wednesday as the White House debates military options and parries growing criticism of its handling of the turmoil in the North African country.

“The Obama administration is throwing out so many conflicting messages on Libya that they are blunting any potential pressure on the Libyan regime and weakening American credibility,” said an editorial in The New York Times, a newspaper that is often supportive of Obama’s policies.

Secretary of State Hillary Clinton, CIA Director Leon Panetta, and the chairman of the Joint Chiefs of Staff Admiral Mike Mullen were meeting at the White House. Obama was not scheduled to attend.

The Obama administration has frozen $30 billion in Libyan assets, helped evacuate refugees and deployed warships off the Libyan coast for possible humanitarian efforts, but it has been hesitant to intervene militarily, especially without a resolution from the U.N. Security Council.

While the United States and its NATO allies debate their options, a counter-offensive by Libyan leader Muammar Gaddafi has halted a rebel advance in the east and left others stranded in Zawiyah and another western city, Misrata.

Republicans and Democrats, including influential Senator John Kerry, have urged Obama to do more to help the rebels but White House officials say the president does not want to be rushed into any decisions that could backfire and plunge the United States into another war.

While the United States is often called upon to respond decisively to crises, analysts say Libya is of minor strategic importance to Washington, which has much to lose by getting stuck in a prolonged conflict in North Africa.

WASHINGTON, March 9 (Reuters) – President Barack Obama’s top aides were due to meet on Libya on Wednesday as the White House debates military options and parries growing criticism of its handling of the turmoil in the North African country.

“The Obama administration is throwing out so many conflicting messages on Libya that they are blunting any potential pressure on the Libyan regime and weakening American credibility,” said an editorial in The New York Times, a newspaper that is often supportive of Obama’s policies.

Secretary of State Hillary Clinton, CIA Director Leon Panetta, and the chairman of the Joint Chiefs of Staff Admiral Mike Mullen were meeting at the White House. Obama was not scheduled to attend.

The Obama administration has frozen $30 billion in Libyan assets, helped evacuate refugees and deployed warships off the Libyan coast for possible humanitarian efforts, but it has been hesitant to intervene militarily, especially without a resolution from the U.N. Security Council.

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TAKE A LOOK-Unrest in N. Africa, Mideast [ID:nLDE71O2CH]

ANALYSIS-Obama faces no good choices [ID:nN08154365]

WASHINGTON (Reuters) – The White House pushed back on Monday against pressure from some lawmakers for direct intervention in Libya, saying it first wanted to figure out what various military options could achieve.

“It would be premature to send a bunch of weapons to a post office box in eastern Libya,” White House spokesman Jay Carney said. “We need to not get ahead of ourselves in terms of the options we’re pursuing.”

The Obama administration faces sharp criticism, especially from Republican lawmakers and conservative commentators, for its cautious approach to the turmoil in Libya but has signaled it will not be rushed into hasty decisions that could suck the military into a new war and fuel anti-American sentiment.

One major obstacle: officials are still trying to identify the main actors within the opposition groups fighting to oust Libyan leader Muammar Gaddafi. The aims of these groups are unclear, including what type of government they might set up if Gaddafi falls, the officials say.

President Barack Obama said on Monday he wanted to “send a very clear message to the Libyan people that we will stand with them in the face of unwarranted violence and the continuing suppression of democratic ideals that we’ve seen there.”

The White House has long said all options are on the table over Libya but, on Monday for the first time, it gave a vague priority to the possible military steps being studied.

Bottom of the list is sending in ground troops, Carney told a briefing. A “no-fly” zone, an idea popular with lawmakers, is being “actively” discussed within NATO, while possibly arming the rebels is also in the mix, he said.

WASHINGTON (Reuters) – The United States is reluctant to get sucked into Libya’s increasingly messy conflict, despite its fears that the oil-producing North African country is descending into chaos.

WHAT COULD TRIGGER U.S. MILITARY INTERVENTION?

Possibly a major jump in the death toll. Analysts say massacres of civilians, aerial bombing of civilian targets or a concerted military offensive by Libyan leader Muammar Gaddafi to retake rebel-held territory could be possible triggers.

While the Obama administration is sensitive to criticism that it has been slow to respond more forcefully to Gaddafi’s bloody crackdown on opponents, it has made clear it will not be rushed into making any hasty decisions.

Media reports of aerial bombing of civilians have helped drive calls for international military intervention but Defense Secretary Robert Gates and Admiral Mike Mullen, the chairman of the Joint Chiefs of Staff, said on Tuesday the United States has so far been unable to confirm them.

Two U.S. amphibious assault ships are now sailing toward Libya but U.S. officials have stressed they are being sent to help with possible humanitarian efforts. Marines on board could be used to help protect any international aid mission.

For now, the United States appears to be content with symbolic shows of military strength and seizing a record $30 billion in Libyan assets.

WASHINGTON (Reuters) – Flexing its military muscle, the United States sent warships toward Libya on Tuesday as it sought to keep pressure on Muammar Gaddafi to relinquish his four-decade grip on power.

Secretary of State Hillary Clinton said the United States and its NATO allies were still considering a “no-fly” zone over Libya, although military commanders warned of the peril to allied aircraft of enforcing it.

The United States has also frozen $30 billion in Libyan assets.

“We are going to keep the pressure on Gaddafi until he steps down and allows the people of Libya to express themselves freely and determine their own future,” Susan Rice, the U.S. ambassador to the United Nations, told ABC’s “Good Morning America” program.

Two amphibious assault ships — the USS Kearsarge, which can carry 2,000 Marines, and the USS Ponce — were due to sail through the Suez Canal and enter the Mediterranean Sea early on Wednesday morning, an Egyptian official said.

The repositioning of U.S. ships and aircraft closer to Libya is widely seen as a symbolic show of force since neither the United States nor its NATO allies have shown any appetite for direct military intervention in the turmoil that has seen Gaddafi lose control of large swaths of his country.

U.S. officials said the ships were being redeployed in preparation for possible humanitarian efforts as tens of thousands of people flee the violence. But they said military action remained an option.