As the US Congress splits along party lines, pressure has grown on lawmakers to set aside their differences and compromise ahead of an August 2 deadline to raise the country's debt ceiling.
A day after the Democrat-led US Senate voted down a Republican bill passed in the House of Representatives, members of Congress were forced back into negotiations Saturday to wrangle out a deal that could save the country from a calamitous default on August 2.
Business Roundtable, an association of CEOs from a number of major US companies, sent a letter to US President Barack Obama and Congress on Friday demanding that they “enact legislation now that raises the debt limit”, saying that “inaction poses an unacceptable financial risk to the nation’s economic growth and job creation”.
If Congress fails to reach a compromise on raising the debt ceiling from $14.3 trillion before Tuesday’s deadline, the country will have reached its legal debt limit, meaning it will no longer be able to borrow cash from financial markets to pay its bills. A default could thrust the country back into recession and threaten an already fragile global economy.
Date created : 2011-07-30