Theme Tune Spanish Flea

dictatorship Obama warns recession

Obama warns tough U.S. economic crisis if not raise the debt limit

United States (U.S.) runs the risk of living an economic crisis worse than 2008 if the deadlock persists in Congress and not raise the roof debt to be reached on Monday, warned the president Barack Obama.
"If investors think the credit world and good U.S. faith is not supported, if they think we can deny our credit commitments, the entire financial system could collapse, "the president said." We could suffer a worse recession than we have suffered a financial crisis worse than we've been " Obama warned during an interview with a local channel.
Currently, the U.S. debt limit, imposed by Congress is in the $ 14.3 billion, a level that is expected to be reached this week, although the Treasury has indicated that they can keep it there without going over until August. The figure corresponds to the legal ceiling beyond which the state can not increase government endeudamiento.El and Republican opposition are locked in a battle about the limits on sovereign debt and the U.S. budget deficit.
spokesman for House Republican John Boehner, said he was prepared to reach an agreement on the U.S. debt limit, however, insisted that the government should solve the underlying problems of the country's economy.
"We have a moment, an opportunity to act. Because if we do not act, the markets will do it for us," said the spokesman for the Senate. The White House has insisted, in vain, for Congress to increase the limit, but the issue is synonymous with division in the parliament: the Republicans demand before "save billions," something that the Democrats believe it is dangerous.
The Republican opposition believes that to allow a higher limit must be combined with measures to reduce the budget deficit, currently around $ 1.4 trillion. For his part, Obama supports a fiscal deficit reduction, but not condition the approval of a higher debt limit.
Meanwhile, U.S. Treasury secretary, Timothy Geithner warned on Saturday that if Congress does not increase the maximum ceiling for debt, the northern country would be at fault payment and will not be able to meet its financial obligations to "officials, citizens, entrepreneurs and investors."
"This would be an unprecedented event in U.S. history", which would have "extensive and catastrophic in the country's economy, significantly reducing growth and increasing unemployment," he said.
"Investors of the world would be more reluctant to lend to the United States" and those who do, "ask for higher interest rates," a fact that would increase borrowing costs of government, business and households, continued.
The Federal Reserve chairman (Bank U.S. Central), Ben Bernanke also warned of the danger that would not raise the debt limit. "It's a risky proposition not to raise the debt limit in a reasonable time," Bernanke said last Thursday before a Senate committee. The cost of maintaining the current debt limit will be "at least (...) an increase in interest rates, which in fact, worsen our deficit," he said.

**************
teleSUR
Technorati: Barack Obama , Ben Bernanke, Congress , United States, John Boehner , Timothy Geithner Del.icio.us : Barack Obama, Ben Bernanke , Congress, United States , John Boehner, Timothy Geithner Ice Rocket: Barack Obama, Ben Bernanke , Congress, United States , John Boehner, Timothy Geithner Flickr: Barack Obama , Ben Bernanke, Congress , United States, John Boehner , Timothy Geithner Zooomr: Barack Obama , Ben Bernanke, Congress , United States, John Boehner , Timothy Geithner Buzznet : Barack Obama, Ben Bernanke , Congress, United States , John Boehner, Timothy Geithner Riya : Barack Obama , Ben Bernanke, Congress , United States, John Boehner , Timothy Geithner 43 Things : Barack Obama, Ben Bernanke , Congress, U.S. , John Boehner, Timothy Geithner
Powered by Zoundry