WASHINGTON- President Barack Obama has warned that at the United States risked plunging into recession if a stalemate on the ceiling of the U.S. debt drags, as stated by a top Republican on the page, that he was ready to cut a deal.
The United States is due to hit the 14,29 trillion ceiling fixed by the Congress Monday, creating a liquidity squeeze that puts the credit quality of the country at risk as the battle of politicians on its long-term deficit.
"If investors around the world thought that the full faith and credit of the United States was not to be saved, if they thought that we could return to our ious, it could unravel the whole of the financial system," Obama warned at a meeting of the Hotel de ville CBS last week which was broadcast on Sunday.
"We might have a recession worse than what was already in us." A worse financial crisis that he already had us. ?
The President Republican John Boehner, said Sunday he was ready to cut a deal more raise U.S. debt ceiling, but he insisted the administration must move solve underlying problems in the US economy.
He said program "Face The Nation" of CBS Sunday that he believed that it would be necessary to raise the debt ceiling, but he added must be done as "bearing the budgetary challenges America long term."
I'm willing to cut the deal today. You know, we do not have to wait until the 11th hour. But I'm not going to walk away from this time, he said.
"We have a moment, a window of opportunity to act.". Because if we do not, the markets will do for us.
"If I am committed to ensuring that we have real reductions of expenditures and actual changes to the budget process so that this problem will never occur again."
Republicans have been firmly refusing to raise the ceiling without massive future budgetary expenditures, but more the fight to fill the deficit of the country, more issues will get.
Boehner said he is seeking trillions of dollars in cuts from the federal budget, not only of the billion.
Reached the debt ceiling would not have an immediate impact on public finances, because the Treasury Board has found about 10 weeks of maneuver in adjustments in the short term and unexpected April jump in tax revenues.
But if nothing is done about August 2, there is a chance to the United States, who has always earned a top-level credit rating, could do the unthinkable - by default on its debt payments.
Economist Paul Krugman, Nobel Prize for literature, alerted the Sunday show ABC "This week" disaster threat if "we are beginning to look like a banana Republic."
"A US Treasury bill is the gold standard of value, so that, at the height of the financial crisis, there is intervals where the US Treasury bonds had negative interest rates, because that is what people had to take"He said.
"If you suddenly say, oh, this is not without danger, because the US Government is - is a lot of children is chamailleurs, which is a possible real disaster.".
Boehner insisted Sunday he was not "see concretely yet" of the administration of Obama trying to implement spending huge cuts.
"We all know what are the problems." Why not just deal with them? No more kicking the can, on the road, no more whistling past the graveyard. Now is the time to deal with budgetary problems, that we have an adult-like manner. ?
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