US President gives a 36-hr ‘debt deficit’ deadline to the US Congress

July 18th, 2011 - 7:02 pm ICT by Aishwarya Bhatt  

Washington, July 18 (THAINDIAN NEWS) US President Barack Obama issued a 36-hour deadline to the US Congress to come up with a deal that will prevent the country from defaulting on its debt for the first time in its history. The president issued the ultimatum on Friday and he warned that if the lawmakers in Washington fail to meet the deadline, the country risk defaulting on its debt obligation when the current debt ceiling is reached on the 2nd of August.

President Obama addressed a press conference at the White House where he warned the Democrat and Republican members of Congress that they have up to 36 hours “to give me some sense of what your plan is to get the debt ceiling raised through whatever mechanisms they can think about and show me a plan in terms of what you’re doing for deficit and debt reduction.”

The White House and Congress have been locked up in negotiations on how best to deal with the bulging US debt. America currently has a debt ceiling of $14.3 trillion which the country is extremely close to reaching.

The major obstacle in raising the debt ceiling is how best to deal with the US deficit. If the US fails to raise its debt ceiling, it is very likely that the country will not be able to meet its debt obligation and default. That will be the first in the history of the country which is regarded as the world’s richest.

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