Saturday, July 16, 2011

U.S. government debt: Obama represents Ultimatum

President Barack Obama on Friday called for an agreement ultimately in the dispute over the debt limit. While the president reiterated at a press conference at the White House to demand that the negotiators of both parties would reach an agreement within 36 hours, the groups came together on Capitol Hill separate meetings behind closed doors.

Obama again called for a comprehensive solution "to stabilize for the next 15 to 20 years," the financial position of the United States. It needed to compromise the willingness of both parties, the President said. Obama expressed cautious confidence, although the opposition Republicans reaffirmed their opposition to a comprehensive solution with spending cuts and tax increases.

Obama called on the conservative Republican Party to present a "serious plan," he was willing to compromise, the President reiterated. After a group meeting on Capitol Hill announced the leadership of the Republicans on Monday for a vote in the House of Representatives by increasing the debt limit by 2.4 trillion to 16.7 trillion dollars then.

At the same time a constitutional amendment should be assumed that the federal government should be committed to a balanced budget in Washington. Obama's initial reaction not to the announcement of the Republican vote, but he rejected a constitutional amendment with a commitment from a balanced federal budget.

The parties in Washington have been arguing for weeks over raising the debt limit from the current 14.3 trillion U.S. dollars reached without the United States for the second August, the threat of insolvency. Obama wants to increase America's debt limit on Tuesday suggested Obama had a crisis meeting with the parliamentary leaders of the parties on the weekend residence of American presidents at Camp David in Maryland.

The minority leader of the Democrats in the House of Representatives, Nancy Pelosi, but had made it known that they can not because of other important dates for such a meeting could occur. The Republican "spokesman" of the House of Representatives John Boehner showed little inclination to a weekend meeting at Camp David.

Meanwhile, speaking of the Democratic Senate Majority Leader Harry Reid and Republican Minority Leader Mitch McConnell privately about a possible legal maneuver, by which the President raise the debt limit, unilaterally and without the consent of Congress could. According to calculations by the White House and the Treasury, the Federal government in Washington can of 3 August to meet their payment obligations not complete if the end of next week but no-time increase in the debt limit is agreed.

The latest round of talks, held every day since Sunday with leading members of Congress of both parties in the Cabinet Room of the White House had gone on Thursday evening with no result at the end. The majority leader of the Republicans in the House of Representatives Eric Cantor, said Obama had left the meeting abruptly after he had warned Cantor to challenge him further.

In addition, the President had intimated that he would not give in on the controversy continues, even though he might be endangering his re-election in 2012. An employee of the White House said, however, Cantor exaggerating wildly with his performance. Instead, the Republicans have even "like a child" and had behaved like the president repeatedly interrupted.

The dispute over the debt limit has been shaping the electoral victory of the opposition Republicans in the congressional elections of November 2010, the political life in Washington. The debt limit from the current 14.3 trillion dollars had already been reached in mid-May, accounting for modifications by Washington but was time to 2 August win.

In the past, the debt limit by Republican as Democratic president had been raised again and again. Even Federal Reserve Chairman Ben Bernanke on Friday night once again raising the debt ceiling. Even a partial default by the largest economy in the world could have catastrophic consequences for the international financial markets, Bernanke warned.

Meanwhile, the largest foreign creditors are no longer saves Washington's criticism. "We hope that the U.S. government adopted responsible decisions and actions that guarantee the interests of investors," said the spokesman of Chinese Foreign Ministry, Hing Lei. China holds U.S. government bonds worth more than a trillion dollars, making it the largest creditors of Washington.

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