President Obama: U.S. Debt Deal Reached

On Sunday night, President Obama finally announced an agreement has been made with Republicans to raise the debt ceiling. This agreement prevented what could have been the first time the U.S. government ever defaulted on its financial obligations. The long-awaited agreement must now be approved by Congress. The U.S. debt deal reached will increase the debt ceiling by at least $2 trillion through the 2012 election. The deal also involved spending cuts resulting in $1 trillion from the federal budget over the next 10 year. A special congressional committee will also now be in charge with coming up with $1.5 trillion in further deficit reductions which will have to be drawn up before Thanksgiving.

Obama Debt Deal Reached

While President Obama does not believe this U.S. debt deal is the one he would have preferred he still agrees that it will allow the U.S. to avoid default and end the crisis that has been placed on the citizens. The President also said this deal will result in the lowest level of domestic spending since the 1950′s Eisenhower administration.

The U.S. President urges that this is a balanced deal, but both side of the House still refuse to vote for certain parts of the deal. Nancy Pelosi, the House Democratic Leader also does not completely agree with the plan as she has stated she is still reviewing it. Hopefully this U.S. debt deal will be approved so the country can move forward and learn from it’s mistakes.

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