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:

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  • Julieann

    Why don’t they just cut back on government pensions, government paychecks, and government benefits that they get when they retire while the rest of the country is struggling?

  • Jlb9755la

    why obamasuckups never breathe a word about G. E. tax oversight?   cuz……….  its a socialist believer & supporter of  degrading the us constitution ***  f a c t *     this goverments plans is to tear it down and (fundamentally transform america )  remember what  mr oz said on the night of his big presidentual speech*     wake up young people / obama is not americas friend /  his intentions are all chicago style gang style takeover as much as he can***  i say to him and his little eric holder bookholder/  i will fight for this country.. dont tread on me *   there is many more of us/ than you socialist markist , so.. proceed with caution *  we knew the british were coming before they got here/  so… believe me, we know you people are here/