U.S. Debt talks continue
Posted Jul 25, 2011 06:01:44 AM.
This article is more than 5 years old.
WASHINGTON – Another day has come and gone and there is still no deal in Washington on cutting spending and raising the debt limit. Democrats and Republicans hoped to cut a deal yesterday to ensure the U-S could cover its debts when the current borrowing limit expires next week.
Instead, Republicans and Senate Democrats prepared rival debt-limit fallback plans in hopes of reassuring world financial markets. The stakes are high with major global credit ratings agencies threatening to downgrade the U-S government’s triple-A credit rating.
If the U-S goes into default for the first time in its history next month, the government may not be able to pay its bills. The biggest obstacle to a long-term debt limit extension is coming from the Republican-controlled House. Nearly all House Republicans have signed a public pledge not to raise taxes for any reason.
