Economy USA

U.S. still deadlocked on debt

WASHINGTON (Reuters) – Retirees could be the first victims of a collapse of public accounts in the United States, on Tuesday  Barack Obama said in an effort to increase its pressure on elected officials with whom he negotiated the increase of the ceiling U.S. debt.

The president has received for the third time in three days the representatives of parliamentary groups in the White House to try to break the deadlock the negotiations before August 2, when the government will be insolvent, according to the Treasury .

However, no progress was made and a new Town Hall meeting was scheduled at 16h00 (20h00 GMT) on Wednesday. Barack Obama has promised to bring together leaders on both sides every day until they reach a solution.

The Republican Party refuses to raise the debt ceiling in the absence of agreement on the reduction of public spending. On Tuesday Mitch McConnell, chairman of the Senate, expressed doubts that a “real solution” can be found as Barack Obama will be in business.

The president, who has put his remarks on account of “political competition”, was meanwhile expressed concern for the beneficiaries of the retreat of Social Security, which he said could not get their check early August because of agreement in Congress.

Obama said: “I cannot guarantee that those checks go out on August 3rd, if we haven’t resolved this issue.  Because there may simply not be the money in the coffers to do it.”

John Boehner, Republican chairman of the House of Representatives held its own responsibility to find ways to raise the debt ceiling before the United States have exhausted their financial capabilities.

“The debt ceiling is his problem,” he summarized.

Paralysis of public finances raises the specter of a return to recession; economic activity has slowed markedly since the first quarter.

Barack Obama has a deficit of 4.000 billion over ten years involving higher taxes to which oppose the Republican majority in the House of Representatives. This tax increase would be accompanied, according to the president, budget cuts and a reform of health insurance Medicare and Medicaid that the Democrats fear.

The latter consider that higher taxes on higher incomes should help solve the budget equation, but the Republicans do not want to hear about it.

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