Dueling debt plan impasse threatens U.S. credit rating
Top U.S. lawmakers rolled out dueling debt plans Monday that offered little prospect for compromise, increasing the threat of a ratings downgrade and national default, as President Barack Obama prepared to address Americans on the impasse.
Little more than a week before the Aug. 2 deadline to raise the US$14.3 trillion U.S. debt ceiling, Republican and Democratic leaders traded blame in an acrimonious standoff as they pursued separate budget proposals, with no clear path to bring them together.
The stalemate rattled investors worldwide, sending stocks and the dollar down and pushing gold to a record high, but falling far short of the panicky sell-off that some politicians in Washington had feared after weekend talks broke down.
Raising the stakes and seeking to seize back control of the debate, the White House said Obama would address the nation at 9 p.m. EDT about "avoiding default and the best approach to cutting deficits."
House of Representatives Republicans unveiled details of a two-stage deficit reduction plan that would start with an initial US$1.2 trillion in savings over 10 years. It is sure to be rejected by Obama because it would raise the debt limit for only a few mincreasingly focused more on the risk of a damaging cut in U.S. Treasury bonds than on the prospects for an unprecedented federal default, the stage was set for growing investor alarm if the stalemate goes down to the wire.
Joining a growing chorus of global concern as the world's largest economy showed signs of legislative dysfunction, the International Monetary Fund urged swift U.S. action on its debt to avert broad negative fallout.
Obama and congressional leaders have tried to reassure global markets that the country will be able to service its debt and meet other obligations after Aug. 2, when the United States will run out of money to pay all of its bills.
Boehner's plan would raise the debt limit in stages, forcing Congress to confront the politically painful issue again before the November 2012 election, when Obama is seeking a second term.
Boehner will push for legislation to cut US$1.2 trillion in spendinthat Congress will do the right thing and secure a deal on the debt ceiling and work with President Obama to take the steps necessary to improve our long-term fiscal outlook," she said in a speech in Hong Kong |
發表於 2011-7-25 17:53
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