Obama signs historic debt deal to avoid default

August 3rd, 2011 - 3:09 am ICT by IANS  

Barack Obama Washington, Aug 3 (IANS) Hours before the midnight deadline, US President Barack Obama signed a compromise plan to raise America’s $14.3 trillion debt ceiling to avoid a catastrophic US default sending shock waves through the world economy.

The US Senate passed the plan, which imposes sweeping new spending cuts over the next decade, shortly after noon Tuesday.

The bill was approved in a 74-26 vote; 60 votes were required for passage.

The measure was approved by the House of Representatives Monday by a 269-161 vote, overcoming opposition from unhappy liberal Democrats and tea party Republicans.

Obama praised the deal moments after the Senate passed it, calling the measure “an important first step for ensuring that as a nation we live within our means.”

(Arun Kumar can be contacted at arun.kumar@ians.in)

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