Blame game continues over US debt crisis

22/07/11 19:33 CET

economy

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With time running out, negotiations between President Barack Obama and the Republicans to avert an unprecedented US default seem to be going nowhere.

Before August 2 they have to reach a deal, otherwise the US will run out of money to pay its bills.

Obama blames the Republicans for refusing to accept tax hikes: “We have never defaulted on our debt and we are not going to do it now. If we are going to reduce our deficit, the wealthiest Americans and the biggest corporations should do their part as well.”

The Republicans counters the White House is the problem as it will not agree to deep spending cuts aimed at long-term deficit reduction

And it seems there no progress being made. On Friday the Republican leader of the House of Representatives in Congress, John Boehner, told reporters: “There was no agreement, publicly, privately, never an agreement and frankly not close to an agreement. And so, I would just suggest its going to be a hot weekend here in Washington DC.”

If there is no deal, the United States would default on its obligations possibly plunging the country back into recession and certainly sparking a crisis in financial markets worldwide.

More about: American budget, Barack Obama, Financial Crisis, Republicans, USA

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