Economy USA

Debt Ceiling: no agreement in Washington

WASHINGTON – The failure to raise the ceiling of the debt of the United States is likely to ensure the reelection of President Barack Obama in 2012, the leader of the Republican minority in the Senate launched on Wednesday, Mitch McConnell, his Conservative colleagues, a sign of the deep division of the Republicans on this issue of crucial importance for the country and its economy.

Mr McConnell made the remarks before Obama and congressional leaders will meet privately to the White House for the fourth day in a row to avoid a default by the government from August 2. The discussions ended after just over two hours.

On Wednesday Associated Press revealed that Obama had abruptly ended the meeting and expressed his exasperation with the demands of Republicans to accept a short-term extension of borrowing authority of government.

Meanwhile, the rating agency Moody’s threatened to lower the rating of the United States, a change that could push up interest rates for many Americans. Moody’s cited “the growing possibility that the debt cap is not raised in time.”

The Capitol, representatives and senators backbenchers have proposed measures on which to fall back if the negotiations at the White House would fail.

A draft submitted by Democratic Senator Bill Nelson is to ensure that social security benefits are paid on time to millions of elderly, disabled and veterans who depend on it. Another project proposed by three Republican representatives would give priority to paying the salaries of armed forces.

“Right now, there is no single proposal on the debt cap could go to the House of Representatives,” said the leader of the Republican majority in the House, Eric Cantor, in a written statement.

He believed that politicians should focus on the topics they can agree to talk rather than tax increases sought by the Democrats or the Republicans’ willingness to repeal the reform of the health of President Obama.

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