US Saturday debt talks fail again

25th July 2011

Here the Wall Street Journal reports on the crux of the argument with Republicans supporting two ‘instalments' with President Obama and the Democrats supporting a full rise, citing the risk that agencies could cut America's rating anyway.

"Republicans attacked Mr. Obama for objecting to a short-term increase, saying it would be "terribly unfortunate" if he sticks to it. The White House pushed back against this idea again on Saturday.

"The president restated his opposition to a short-term extension of the debt ceiling, explaining that a short-term extension could cause our country's credit rating to be downgraded, causing harm to our economy and causing every American to pay higher credit cards rates and more for home and car loans," White House press secretary Jay Carney said in the statement. "Congress should refrain from playing reckless political games with our economy.""

Standard & Poor's says it could lower the rating if any deal is deemed to not be credible about deficit reduction.

Most Americans – in a poll published on CNN political ticker favour some cuts and some tax rises, but Republicans – some of whom stood on a platform of never approving tax increases – are widely opposed.

It reports that "More than half of Republicans say the agreement should be balanced and roughly seven out of ten Democrats and independents say the same. More tea party supporters also agree, since 53 percent say any deal should include both spending cuts and tax increases".

Here the website Asia Market Watch reports on UK business secretary Vince Cables view that right wing nutters are endangering the global economy.

For two more views from left and right here Matt Taibbii on his Taibblog on Rolling Stone magazine is outraged that a corporation tax repatriation holiday is on the cards as part of the deal. 

But here senior Republican and former Treasury secretary James A Baker argues on the Wall Street Journal that any deal should include a ‘hard cap' on spending to solve the problem of a deal on borrowing. 

To receive our free email newsletter sign up here.

Leave a Reply

Your email address will not be published. Required fields are marked *