Congressional Republicans are the current $14.25 trillion swear to, before they will agree with me, a federal debt ceiling to increase - a move that is - are necessary President Obama and the Senate Democrats who agree to much deeper reductions of appropriations for the next year and also as in the six month budget deal agreed in less than five weeks late Friday night, the cutting turned away 38 billion dollars and a Government shutdown.
Republicans have also indicated that on abortion and more, are demanding back fundamental changes in the policy on health, the environment, the right ceiling as the price for their support for the increase in the debt.
In a letter Treasury Secretary Timothy F. Geithner said the Government which would make border no later than May 16 Congressional leaders last week. Outline it "extraordinary measures" - essentially move - money under the financial statements, the time until the July 8 could buy.
When the limit is reached, would be the Treasury Department unable, as routinely to finance to borrow debt federal existing operations and roll over. Ultimately it would be unable to pay off maturing debt, the Government put the United States - the global standard-setter for credit rating - in default.
The effects in this case as much as political, rippling from the bond market in the lives of ordinary citizens through higher interest rates, economic and financial insecurity would be the way the economy until now, more than three years after the start of the last recession is overcome.
Given the short time frame for the action and the prospect of an intractable political struggle, leaders in politics and economy move leaders already is on a crisis averted, which most likely is "a recovery end event", as Ben S. Bernanke, the Chairman of the Federal Reserve, witnessed recently in the Senate. He described a sequence of events, the "" overlapping with the financial markets would provoke another credit crisis such as that in the year of 2008 and caused interest rates to jump.
Mr Geithner has private meetings were with senior legislators of both parties to emphasize the economic use. Peeled in the White House Mr. Obama of Economic Advisor, Gene Sperling, way of the expenditure of fight in the almost full time for the development of the strategy of the Government for the debt-limit enable debate last week. Central, management officials say whether Mr Obama bipartisan talks on a long-term debt reduction that tackles control, military spending and growing entitlement programs such as Medicare and Medicaid planning is initiated.
Executives of the largest financial institutions of the country in recent days ceiling met with Mr Geithner, House Speaker John A. Boehner, Republican of Ohio and other legislators, argument for the importance of the increase in the debt. Jamie Dimon, who told the Chief Executive of JPMorgan Chase, them that, to the global business the default protect his bank contingency plans developed.
"If someone wants to, that I think touch of a button, which to my opinion is disastrous and unpredictable, they are crazy," said United recently in which Mr. Dimon States Chamber of Commerce.
The United States is one of the few Nations which by law limited its debts, and votes in Congress to the ceiling, the least are popular, something that happens every few years, maybe that legislators face.
Financial and Government leaders alike have some political brinkmanship used in grown increase of the CAP, confident that ultimately in the rule with the Party of the White House provides the most votes do Congress, would. (So it came that Mr Obama, request to the debt increase administration as a Democratic Senator in 2006 against a Bush voted, it passed with mostly Republican votes.)
What is different this year, people in both parties say is the large number of Congressional Republicans, including many newcomers, were a majority House which are energetic against government spending, and use the activist tea party movement to the leverage effect of the debt limit votes of the party, encouraged their stand.
"We want real structural, cultural type changes to this debt ceiling tied." "We in a unique way of savings, or something small, not interested", said representative Mick Mulvaney, first-term Republican from South Carolina. "It has to all new types of changes to us, to vote in favour."
He rejected warnings about standard as "just vorgemacht", and said Democrats should take the responsibility to pass any measures to increase the debt limit.
"It's their debts," he said. "They do make." "This is my attitude."
In fact, the debt of both parties and past President as also Mr. Obama was created.
Of the almost $14.2 trillion in debt, is money that mainly has borrowed the Government from other accounts, revenue from social security according to federal figures about five trillion dollars. Several important directives from the last ten years as a Republican, that White House and Congress controlled - tax cuts, use a Medicare prescription drug and wars in the Iraq and Afghanistan - account for more than $3.2 trillion.
The recession cost more than $800 billion in lost revenue from businesses and individuals and automatic spending for safety net programs such as unemployment benefits. Mr Obama stimulus spending and tax cuts added over 600 billion dollars by the fiscal year that ended Sept. 30.
Although the recent stand-off, which consumed 2011 Washington on expenditure for the financial year without a Government shutdown, the chaotic process and hour have come settlement trepidation over the debt limit battle stoked. If so hard over some billion dollar compromise plan, goes the thinking as they ever collaborated on a multi-year, multi trillion dollar cut it Republicans and Democrats the debt can come within weeks or months?
"If I still Finance Minister, it would make the hell out of me", said James A. Baker III, who served almost trebled in the Office of President Ronald Reagan during a time when federal total debt of his two terms. "But it does not concern me as a good Republican, and one who wants to see finally some fiscal policy in this country."
