The Syracuse community has been waiting anxiously with the remainder of the United States for word about a resolution to the nation’s present debt crisis prior to a possible financial default on Tuesday. Now at the last minute it appears the crisis over the nation’s debt may coming to an end. People here in Syracuse are hoping along with the nation this will mean business as usual this week.
Heidi Przybyla and Kate Andersen Brower have reported for Bloomberg News “Deal Framework Reached on Raising U.S. Debt Ceiling.” Just two days before the default deadline President Barack Obama and congressional leaders have begun a new attempt to reach an agreement on raising the U.S. debt cap. It has been said by a source familiar with the talks that the White House and congressional Republicans have been working together to put together an agreement to increase the nation’s $14.3 trillion debt ceiling which would raise borrowing authority through the next presidential election.
However, officials from the White House have cautioned that no final agreement has been reached among those involved in negotiations and that the negotiations were continuing. President Obama and congressional leaders yesterday worked hard to prevent a U.S. government default on its debt after several previous efforts in recent weeks had failed. Late in the day both Republicans and Democrats said they felt greater optimism a deal may be within reach before Aug. 2, which is the date Treasury Department officials have said they will have to default without a debt limit increase.
Obama wants an increase in the $14.3 trillion debt limit that lasts through the 2012 election. And the president has warned of potential problems if the borrowing authority is not increased by Aug. 2, which would include missed checks to Social Security recipients and a downgrade of the U.S. credit rating if Congress allows the government to default.
Meanwhile Senate Majority Leader Harry Reid said last night that he was “confident that reasonable people from both parties should be able to reach an agreement.” The bottom line is only the nations most militant enemies have anything to gain if the United States goes into financial default on Tuesday which would set off catastrophic shock waves across Wall Street and international markets.
Mandel News Service