US President Barack Obama warned Washington lawmakers on Saturday that time was running out to agree a deal to raise America’s debt limit.
In his weekly radio address, the President insisted that Congress find a way to compromise over the US $14.3 trillion ceiling before the government runs out of cash.
“I’m willing to do what it takes to solve this problem, even if it’s not politically popular, and I expect leaders in Congress to show that same willingness to compromise” said the President.
“The truth is, you can’t solve our deficit without cutting spending. But you also can’t solve it without asking the wealthiest Americans to pay their fair share”.
With a little over two weeks to meet the deadline, the Democrats have been pushing for a debt limit increase of $2.4 trillion. They said they’ll pay for it by increasing taxes on the rich. The Republicans have demanded deeper public spending cuts instead.
US government cheques will start bouncing on August 2nd if an agreement isn’t reached. Analysts warn the effect will likely cause turmoil in the global financial markets, bring about another deep recession and effectively increase taxes for all Americans.