Wednesday, June 1, 2011

Debt limit in jeopardy

 WASHINGTON (Reuters) – President Barack Obama told Republicans that there could be dire consequences of a failure to increase the debt limit, White House spokesman Jay Carney said on Wednesday.
"The president made clear that he believes there is no margin here for in any way casting doubt on the possibility that the debt ceiling would be raised, that the effect of even suggesting that it won't happen could be highly negative and could have dire consequences for our economy and the global economy," Carney told reporters in a briefing.
Obama met Republicans from the House of Representatives at the White House, a day after they defeated their own bill to raise the debt limit. The vote was staged to strengthen their demand for huge cuts in federal spending.
The U.S. deficit is expected to reach $1.4 trillion this year.
Comment:Why such a fuss about the $1.4 trillion deficit of this year when it will be much bigger next year anyway?

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