Today's Coming Crisis Movie

Friday, July 29, 2011

Can Debt Crisis Deal Be Reached? - 29th July 2011

Barack Obama says there are "plenty of ways" out of America's debt ceiling crisis - but the politicians in Washington are having trouble locating one.

The US president says he is confident a deal will be struck over the weekend to raise the amount America can legally borrow and avert an unprecedented default.

But Republicans and Democrats appear to be in gridlock in trying to tie spending cuts to the deal to raise the ceiling.

The Republican leadership in the House of Representatives has spent three days trying to round up enough of its own members to support a plan already doomed to defeat in the Senate.

It has become deeply embarrassing for Speaker John Boehner and has raised questions about his future.

He has struggled to win over conservative Republicans, many of them elected with Tea Party support, who believe cuts need to be much greater.

Democrats controlling the Senate have only just started talking about their own plan, a reticence that has also attracted criticism.

As Mr Obama said, the Republicans and Democrats are "not miles apart" over how much they believe needs to be cut from America’s spending, the sticking point is whether to raise the debt ceiling in two steps or one.

But the American people are increasingly angry at how long this is taking and the possible consequences for them of the damage being done to America’s financial reputation. Read More