Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


    July 11, 2011

Obama: Failure to Reach Compromise Could Trigger Recession

   VOA News
   U.S. President Barack Obama holds a news conference in the briefing
   room of the White House. Obama said on Monday that he would refuse to
   consider a short-term stop gap measure to raise the U.S. debt ceiling,
   July 11, 2011
   Photo: Reuters
   U.S. President Barack Obama holds a news conference in the briefing
   room of the White House. Obama said on Monday that he would refuse to
   consider a short-term stop gap measure to raise the U.S. debt ceiling,
   July 11, 2011

   President Obama says congressional leaders from both political parties
   will have to compromise in order to reach agreement on the debt and
   deficit.
   Mr. Obama says he is prepared to take on significant criticism from his
   Democratic Party to reach an agreement. But he says he does not see a
   path to a deal if Republicans do not budge on their position.
   He says it will take work from both political parties to reach
   agreement.
   The president warned that failure to raise the debt limit could lead to
   another economic recession. He says he feels confident that Americans
   do not want the United States to default on its debts.
   Mr. Obama says he is a seeking a solution to solve short-term deficit
   problems, avoid default, stabilize the economy, and prove to the
   American people that Washington can get things done.
   The president says he will not sign a 30-day, 60-day or 90-day
   extension on the debt ceiling.

   The president says meetings with Congress will happen "every single
   day" until an agreement is reached on the debt and deficit.
   At a White House news conference Monday, the president said
   congressional leaders agree that it is not acceptable to allow the
   United States to default on its debt by not raising the debt ceiling.
   He says a series of spending cuts have been agreed, including on
   defense and health spending.
   But he told reporters that a lot of work still needs to be done on
   reaching a final agreement. He says he will not, however, accept a
   short-term stop-gap measure rather than a comprehensive solution to the
   debt and deficit problem.
   The president and opposition Republicans are scheduled to resume
   negotiations later Monday about proposed budget cuts and tax increases
   intended to cope with trillions of dollars in debt. They face an August
   2 deadline to reach an agreement or face a possible unprecedented
   default on U.S. debt.
   U.S. Treasury Secretary Timothy Geithner has said failing to raise the
   $14.3 trillion legal limit on what the government can borrow to pay its
   debts would cause "catastrophic damage" to the U.S. economy.
   Republicans, who control the U.S. House of Representatives, say they
   will not agree to any tax increases, while Mr. Obama's Democratic Party
   allies in Congress strongly oppose cuts in the programs that give
   income and health care to the elderly and poor.

.