WASHINGTON (Reuters) - Congress returns to work Monday to begin negotiations seriously on the result of the Government debt, even as Republicans and Democrats trade blame for the soaring price of gasoline.
Jam down the wrath of voters on the rise in prices at the pump has become a priority for the White House, which has seen the approval rate for the President Barack Obama to take a beating during the two weeks in the spring of the Congress.
With the polls showing higher prices pump to undermine the confidence of the American economic leadership of the Obama, the Republicans are willing to exploit an issue that could hurt the chances of the Democratic President of his re-election in 2012.
Pump prices are edging towards the national average all-time of $4.11 per gallon, eclipsing what the views of the White House as a problem-urgent rehabilitation of the level of the amount of the United States can borrow so that it can continue to pay its bills and avoid default on its debt.
The House of representatives and the Senate will be the battleground in the next few days because the two parties seek political advantage in the debate on the increase in gasoline prices.
The home has led the Republican should vote on the expansion of offshore oil drilling and accelerate the process of approval by Government, while Senate majority Harry Reid Leader plans, a Democrat, to adopt a law putting an end to tax breaks worth billions of dollars for the major U.S. oil companies.
But Congress is confronted by a far more difficult struggle as he looks down worrying both date - may 16 and July 8 - when the risk of default on government debt unless some big solutions are found for the Government's policy of spending and tax in the long term.
"I see a circus of ring - three with the debt limit the center ring," said Patrick Griffin University American, a former legislative assistant to President Bill Clinton.
The Department of the Treasury, said Washington will be missed at the limit of $ 14.3 billion by Congress-set on borrowings by May 16 autour. Using extraordinary measures, Secretary of the Treasury Timothy Geithner will be able to prevent the default value, but only until July 8.
Kent Conrad, one of the "Gang of Six" Democrat and Republican senators, trying to design a great deal budget, said "Fox News Sunday:" "we have made huge progress in this group." And I hope that we are able to announce an agreement soon. ?
There was speculation generalized that Senators - considered by many of Washington as the best hope--for a bipartisan agreement could unveil their plan this week. But Conrad gave no hint when the Group would complete its work.
DEVINE COMING TO DINNER?
Monday evening, all the key players in the debate of deficit will dine in the White House, not so much to work on the legislation but of making nice with one another in a prelude to what should be an overwhelming control.
Republican leaders and some Democrats, have said clear that they will not support raising the ceiling of the debt without major cuts in government spending.
During the break, the White House continued to work on a plan that will make the broad targets for the reduction of the deficit while leaving the negotiations on the details that after the elections in 2012. Such a plan would provide political cover to vote legislators to increase the ceiling of the U.S. debt.
Lobbyists representing major U.S. manufacturers, Wall Street banks and other business groups should send a letter to lawmakers this week warning of the dire economic consequences if the date of July 8 is not met.
"Make no mistake, we are at a critical time," Conrad, President of the Senate Budget Committee, warned in a meeting with the leaders of the company and the community in his North Dakota home.
"America is borrowing 40 cents of every dollar we spend. "We are on an unsustainable course," he said.
Wall Street seeks to Conrad and members of his colleague "gang" to outline a path to a more sustainable course.
Plan "the big event in may, everyone seeks to is the output of the Gang of Six", said Chris Krueger, with the financial group of MF Global policy analyst.
Wall Street will be heartened, Krueger said, if the Gang of Six puts out detailed legislative language to correct the problem of debt "and not simply an unbearable another white paper".
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