As the nation’s debt situation looms amid a struggling economic recovery, Obama and congressional leaders remain in ongoing talks to deliver a plan to cut spending. The President speaks on the latest progress.
Without a deal acceptable to both political parties by August 2, the United States will no longer be able to stay current on its financial obligations.
It is analogous to a consumer who has reached a credit card’s limit with no funds to pay it off and the issuer refrains from extending more credit.
The current United States debt limit is $14.294, which will be reached in early August, warned U.S. Treasury Secretary Timothy Geithner. The country’s debt ceiling has fluctuated up and down over the course of the past century but for a majority of the time, it went up.
On Sunday, debt talks were held between President Barack Obama and congressional leaders, including Speaker John Boehner and Senate Majority Leader Harry Reid, to conjure up a balance plan to avoiding the debt ceiling and reduce the country’s deficit.
The Republican party is calling for cuts to benefit programs such as Medicare and Social Security while Democrats are asking for increases in tax revenue.
President Obama must remain adamant in the August 2 deadline to come up with an approach to deficit reduction and avert a national so he doesn’t carry a red mark into his campaign for re-election in 2012.
Watch the President’s news conference on Monday below: