Debt crisis: Obama asked compromise

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Debt crisis: Obama asked compromise, Several major banks in the United States called on U.S. President and the representatives reached an agreement about the national debt ceiling, a few hours ahead of the vote to determine the debt crisis.

Debt crisis: Obama asked compromise, An open letter sent by the leading U.S. financial institutions, including Bank of America, Citigroup and Goldman Sachs, said the consequences of failure may be very serious.

U.S. House of Representatives is scheduled to hold a vote on the proposed plan of the Republican Party to raise the debt limit government and reduce spending.

Democrats and Republicans disagree on how to achieve that goal.
And, if an agreement is not reached next Tuesday 2 August 2011, the U.S. government will run out of cash and threatened America's credit rating has decreased.

The proposal put forward chairman of the U.S. House Republican John Boehner of facing opposition from conservative Republican politicians, and full of opposition by the Democrats in the Senate and a veto threat from the White House.

Republican faction controls 240 of 433 votes in the voting rights in the House, and it requires 217 people to its member states agree to pass the bill.
Wednesday, Boehner has told colleagues in fractions rejected his proposal to help support his proposal.

Loan limits

The U.S. Treasury Department warned the government would run out of money to pay the entire bill payment, unless the government increased the loan ceiling of no later than next Tuesday.

Under the plan Boehner, the U.S. budget deficit will be reduced as much as U.S. $ 917 billion in a span of 10 years, and the national debt ceiling was increased to U.S. $ 900 billion.

President Barack Obama supports other plans proposed by the Senate Democratic leader, Harry Reid.

According to Reid's plan, the U.S. budget deficit will be reduced U.S. $ 2.2 trillion and the ceiling of loans increased by $ 2.7 trillion.

However, Reid's proposal is not expected to escape the current form of the Republican-controlled House of Representatives.

Boehner and Reid plans assessed showed some similarities in several aspects, namely the reduction of spending for 10 years, moving away from tax increases on the wealthy as it is called by President Obama and establish a special committee to devise spending cuts in the future.

Democratic leaders in the Senate insisted Boehner said it would reject the plan, but political analysts believe the plan could be the basis of compromise, our correspondent says.

The BBC's Theo Leggett said the main obstacles to reaching an agreement apparently does the national debt ceiling will be discussed again in 2012 - the year the U.S. will hold a presidential election.

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