John Boehner, the Republican House speaker broke off talks with President Barack Obama on last Friday to avert a government default on receiving a budget deal, which impelled an emergency meeting Saturday. We are kept well-versed by the president on the most recent progress. Obama told in a prime-time speech on Monday night – "the entire world is watching," addressing the nation on the status of discussions to increase the debt limit. Most of the president’s speech committed to call for both parties to collaborate for lifting up the debt ceiling till the end of 2012. According to Mr. Boehner, Mr. Obama sought to increase taxes very high and won’t make “fundamental changes” to advantage the programs he desired.
As per President Obama, except Congress agrees promptly to a long-term raise in the federal debt ceiling, all would threat sparking a vast economic crisis, this one caused just about wholly by Washington. To strike a deal on the issue, he asked Americans to urge their lawmakers in Congress. He also said that he would not agree to a short-range boost in the federal debt ceiling, as planned by John A. Boehner because Obama believes that it is amounted to kick the can down the road. Obama further told that it is not good to permit the American people to become collateral harm to Washington’s political warfare.
It is warned by the US Treasury Secretary Timothy Geithner that in early August the current United States debt limit will be reached. Over the course of the past century, the country’s debt ceiling varied up and down but it went up for a greater part of the time. Democrats spotlights on mounting tax revenue whereas to Medicare and Social Security the Republican Party is approaching for cuts.
President Obama Addresses the Nation on Dangers of Default video from youtube: