'Shortly before President Barack Obama was re-elected, he confided to John Podesta, an informal adviser, a vow he was making for his second term: He would never again bargain with Republicans to extend the U.S. debt limit.
The precedent, set in the agreement that ended a 2011 budget standoff, "sent a signal that this was fair game to blackmail over whether the country would default," Podesta, a onetime chief of staff to President Bill Clinton and co-chairman of Obama's 2008 presidential transition, said in an interview. "He feels like he has to end it and end it forever."
The stand Obama has taken on the latest fight over the government shutdown and borrowing limit -- refusing to tie policy conditions to raising the debt ceiling -- is an attempt to repair some of the damage that he and his aides believe he sustained by making concessions to Republicans to avert a default two years ago, according to former top administration officials and advisers.
The resolution of the showdown with House Republicans will be critical to maintaining Obama's capacity to wield his clout in Washington during the three years left in his presidency and protect the political initiatives of his first term, they say.
The outcome will probably help determine his leverage to press for new priorities such as a revamp of immigration law, expanded access to pre-kindergarten education and infrastructure funding. It may also stave off attacks on his health-care law and the Consumer Financial Protection Bureau.
If Obama makes concessions again to House Republicans over raising the $16.7 trillion debt limit, "he'll be viewed as a guy who you can hold up," said Podesta, chairman of the Center for American Progress, a Washington research group with close ties to the administration.'