Failure to Pay Debts Americans Threatened

TEMPO Interaktif, Washington - United States critical financial condition. Superpower is getting closer to the failure to pay the debt after the Democrats and Republicans failed to agree on the proposed debt ceiling increase in the federal government. Though the deadline to get additional loans increasingly tight until Tuesday next week.
Failed in the senate and parliament, President President Barack Obama, reacted instantly. In his speech, he declared, failure to increase the borrowing limit would be very detrimental to the nation.
"First time in history, the triple-A credit rating will be lowered state," Obama said, this condition, he continued, "leaving the question for investors, whether the United States is still a promising place to do business?"
Intensive negotiations between Republican and Democratic lawmakers last week, has not agreed to increase America's debt limit from U.S. $ 14.3 trillion. As a result, the country will not be able to pay bills maturing on 2 August.
Negotiation impasse create market confusion. This week the price of gold rose to number 1,600 per troy ounce, the highest in history. The value of the dollar fell as fears the U.S. economy continued.
"Every day, passed without the deal will make investors a little more defensive," said Omer Esiner, chief market analyst at the Commonwealth Foreign Exchange in Washington.
Obama warned of default would trigger a tax increase for all citizens of the United States, higher interest rates loans, credit cards, and mortgages. But Obama remains convinced that a deal was still possible.
"I have told the leaders of both parties that they should hold talks fairly," he said. Obama added, "There are still a few days, I'm sure they could take the deal."
Credit rating agencies, Standard & Poor's downgraded the debt would remind the United States if the country fails to reduce the budget deficit amounted to U.S. $ 4 trillion.
The impact of pruning the debt will be felt by the entire world. Investors are likely going to demand a higher return on U.S. government debt. Financial markets are reeling, forcing up interest rates and weaker asset prices.
Republicans and Democrats promised not to let the United States failed to pay the debt. But they have not one vote matter of raising the debt limit.
Democrats want to protect Medicare and Medicaid. The party states, any funding cuts public health programs for poor elderly must be balanced with tax increases. But the proposal was opposed by Republicans. The party insists rejected a tax increase.
A spokesman for the parliament, John Boehner, Republicans in Congress must pass the proposal on two-step reduction of the deficit on Monday. In a first step, Boehner proposes cuts in state spending up to U.S. $ 1.2 trillion.
But it must be rejected Obama's proposal, because it is considered a solution only for a moment. Beginning 2012, this policy should be revisited and it will heat up the political atmosphere ahead of elections. "When six months is not enough to avoid the debt downgrades," Obama said.