The United States President, Barack Obama, declared, “We’re in the eleventh hour,” referring to the short time before federal burrowing reaches the limit imposed by the Congress. Recently the Treasury informed that they will be running out of accounting manoeuvres they will have to stop paying bills, but they did not estate which bills.
This measure could turn the global financial system into chaos, and further weaken America’s trouble economy. Meanwhile the Republicans who control the House of Representatives said that the only way they will support the Congress is with a dramatic proposal to cut the deficit. Despite that the two groups and the president discussed for several hours they have not been able to agree what amount of deficit-reduction they are aiming for. President Obama wants to cut $4 trillion from projected deficits over the next decade.
The leaders of the Democratic minority in the House of Representatives informed that they will not accept cuts to the social safety net. President Obama has ruled out a short-term fix, until next year’s elections. (AV)
Source: The Economist