In the United States, government debt discussions are descending into a blame-game.
President Obama has warned there may not be enough money to honour social security payments after the government’s authority to borrow money expires on August the second. But ahead of a third day of talks in Washington, the Republicans are blaming Obama:
“… after years of discussions and months of negotiations, I have little question that as long this President is in the Oval Office a real solution is probably unobtainable.” said Senate Republican leader Mitch McConnell told the chamber.
Both sides must reach a compromise on raising the country’s 14.3 trillion dollar debt ceiling before it runs out of money.
Experts warn that failure to seal a deal would spook investors, lead to a rise in interest rates and put the US at risk of another recession.