U.S. Debt Ceiling

Nearly two-thirds of Americans are in favor of a balanced solution regarding the U.S. debt ceiling agreement that is expected to be finalized in the next couple of weeks. Some 66 percent of those polled said that an agreement should be reached to include both spending cuts and tax hikes.

Most taxpayers are willing to see a deal between Democrats and Republicans on the U.S. debt ceiling regardless of their opposite views on whether the government should be allowed to increase nation’s debt burden. A U.S. debt ceiling deal is of utmost importance for the United States to avoid defaulting on her debt which will have catastrophic impact on world economy.

President Barack Obama already announced he is ready to risk a second term in office to see an acceptable agreement signed by both political parties in Congress. The government should pay debt liabilities on August 2, 2011 and Obama’s administration want to see the $14.3 trillion debt limit increased in order not to run out of money. Financial market participants react nervously on the news there is no political agreement at this stage because debt problems in Europe contributed to an extremely unstable situation in the world financial markets.

“We must pursue a fallback or last-ditch option … Conversations about that have been ongoing,” White House spokesman Jay Carney told media in Washington, D.C.

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