Debate Which happen between two parties in the US about the state debt limit, have not found an agreement. Though already three days of President Barack Obama and congressional debating about this.
Politicians of both parties, Republicans and Democrats, this time it really a big bet. They could have caused the US failure to pay debts. Moreover, deadlines thinned and appeared deep concern, there would be no agreement in Congress on increasing the debt limit.
One senior member of the Republican party in Congress, Eric Cantor, rejected a plan to raise taxes of the rich Americans. “We will not lead to it,” he said. Instead Democrats, like Nancy Pelosi, did not want to interfere people’s right.
“We must protect the health and social security programs. We will not support the cuts,” he said.
As is known, the US ministry of finance has reach the mandate of Treasury’s debt limit in mid-May and have not been able to spend fresh debt, since reaching the maximum level. Officials also estimate that the Ministry of Finance could bankrupt on August 2, because there is a large payment on August 3.
Minutes of meeting of The Federal Reserve today expressed confidence the bank, that the shortest delay in the payment of any principal or interest obligations of American debt, it can cause severe market disruptions.
It also has a sustained effect to US borrowing costs. At the same time, in an interview with CBS News, Obama is like pressing the ‘panic button’ on social security checks about US$ 20 billion, after there is a risk the government will naturally default if no deal.
“I can not guarantee the check is redeemable on Aug. 3, if the problem is insoluble. Because, there was no funding to do so,” said Obama warned.
A day after Obama’s expressed readiness to make deals, including those involving changes to the Medicare program, the two major media like the New York Times and Washington Post, turned to support the president. They accused the Republican ‘hard like a brick wall’.
Republican politicians in the Senate, Mitch McConnell says, Obama offers a difficult choice. As the smoke and mirrors, a tax increase or default. He also feels proud that his party rejected by the incumbent president.
McConnell also gave the new proposal. An intricate plan of retreat that would give the president new powers, unilateral and effective in increasing the US debt limit. The options referred by McConnell, considered little bit confusing by the media.
“In the discussion that seemed endless, we are increasingly pessimistic about an agreement with the one person who could sign the Act. And the people that the US president, “he said.
According to McConnell, in essence Congress will pass a bill that gives the president the authority to ask increase the debt limit of US$ 2.5 trillion by 2011-2013. Congress will pass the bill, though not agree.
However, the president has the right veto decision and will use its rights. So, get a debt limit extension. “But this is not the first choice. I would rather deal with the president to significantly reduce spending, “he added.
This elaborate plan to give political cover to Republicans. They also no longer pressured to approve tax increases related to the interests of reaching an agreement. And participate in raising the debt limit above.
The majority of the Congress Chairman John Boehner also said to wash his hands of unsticking government debt which accumulated over several successive governments. “It’s about Obama. It’s about time he led with his plan, something that can be passed Congress, “he said.
The media also thinks, politicians not only attracted to avoid default on sovereign debt or default. But also minimize the damage in the political process.
