Obama Announces US Debt, Deficit Deal
Dan Robinson | White House
- President Barack Obama and U.S. congressional leaders announced late Sunday an agreement to cut an initial $1 trillion from federal government deficit spending and more than $2 trillion over 10 years, while allowing the U.S. debt ceiling to be raised before a Tuesday deadline.In a late night appearance in the White House briefing room, President Obama presented a broad outline of the agreement that he noted was still subject to crucial votes in the Senate and House of Representatives.
The first stage of the plan would cut about $1 trillion over 10 years, while preserving what the president called job-creating investments in education and research. The amount of spending cut over a decade would exceed $2 trillion.
Michael Bowman | Capitol Hill
House Speaker John Boehner, who with house representatives must move quickly on an agreement to avert a potentially devastating default on US obligations, walks on Capitol Hill in Washington, August. 1, 2011 Photo: AP
The White House and congressional leaders of both major political parties are pressing rank-and-file legislators to support a last-gasp bipartisan deal to trim U.S. government spending and raise the federal borrowing limit. Votes are expected in both houses of Congress ahead of Tuesday’s deadline to raise the debt ceiling or risk a possible default on U.S. obligations.
Read the rest of this entry : Financial “Armageddon”
US Debt Deal Compromise Leaves Many Unhappy
Jim Malone | Washington
U.S. lawmakers hope to vote soon on a compromise plan to raise the nation’s borrowing limit in exchange for substantial cuts in government spending. The 11th hour compromise agreed to by President Barack Obama and U.S. congressional leaders prevents the United States from defaulting on its debt. But it also leaves some people on both sides of the political spectrum unhappy with the result.
Read the rest of this entry : U.S. Debt Deal Facts
World Markets Rise on News of US Debt Deal
Source: VOA News
Global financial markets Monday welcomed the deal in Washington to avoid a debt default by the government of the world’s largest economy.
Most U.S., Asian and European stock markets moved higher after U.S. President Barack Obama and congressional leaders made an agreement to increase the legal limit on borrowing and cut government spending.
At one point the price of gold dropped more than $15. The precious metal is traditionally a refuge for investors worried about the economy, so the price drop may be linked to an easing of economic tensions.
In morning trading, the price of oil rose nearly three percent, the largest gain in two months, as investors bet the agreement would help economic growth and boost energy demand and prices.
But many markets gave up their gains later Monday after a separate economic report showed U.S. manufacturing grew at the slowest pace in two years.