US debt cutting talks on verge of failiure

Graham_Devon

This follows the raising of the US debt ceiling some months back.

The committe is widely expected to announce they have failed to find any common ground. Therefore, we'll probably be at a point where the US has to raise its debt ceiling again....OR...the US will undergo automatic cuts in defence and domestic spending.

Meanwhile, Obama has a go at China for not doing enough.

Talks in Washington aimed at cutting the level of US government debt are on the verge of failure, the BBC understands.

A special Congressional committee had been charged with finding $1.2tn (£762bn) in savings by Wednesday.

The BBC's North America Editor Mark Mardell says the talks between Democrats and Republicans are on the "brink of failure".

Meanwhile, the US national debt has just risen above $15tn (£9.5tn).
The committee was set up in August, a result of a last-minute deal between the two sides in Congress to raise the debt ceiling and avert a potential default on US debt payments.

Its members were instructed to find at least $1.2tn in savings or face automatic cuts in defence and domestic spending of an equivalent amount.

One day, something might actually get done. Wonder if it will be the US, Eurozone, the UK, or some smaller countries who actually do something rather than continuously talking and extending the debt.

http://www.bbc.co.uk/news/business-15814728

Thrugelmir

Graham_Devon wrote: »

Meanwhile, Obama has a go at China for not doing enough.

With elections approaching. Now is not the time to tell the electorate the facts of life. So blame someone else instead.

Mrs_Bones

Thrugelmir wrote: »

With elections approaching. Now is not the time to tell the electorate the facts of life. So blame someone else instead.

And there are a lot of elections coming up for the main players, Obama, Sarkozy, Merkel. It's isn't going to bode well for anything being sorted.

Wookster

What a surprise.

On the one hand you have the tea party nutters who won't countenance any tax rises including the closing of loopholes, and on the other hand the Democrats who spend somewhat recklessly.

Not a good place to be in...

Generali

If the talks fail, spending cuts and tax rises kick in automatically.

Bush's tax breaks for the rich end next year as do unemployment insurance and payroll tax reduction extensions. Bid cuts in defence spending are automatically triggered and most (all) departments will be sequestered (I think that's the word) so have a certain proportion of their budget cut.

Graham_Devon

Generali wrote: »

If the talks fail, spending cuts and tax rises kick in automatically.

Bush's tax breaks for the rich end next year as do unemployment insurance and payroll tax reduction extensions. Bid cuts in defence spending are automatically triggered and most (all) departments will be sequestered (I think that's the word) so have a certain proportion of their budget cut.

Was explained in a bulletin that there may be a choice...i..e extending the ceiling again?

Generali

Graham_Devon wrote: »

Was explained in a bulletin that there may be a choice...i..e extending the ceiling again?

That is also possible but still many tax cuts and welfare spending policies are due to expire soon and it looks unlikely that either party can force through their program so they'll likely get none of it.

Decades of Gerrymandering are coming home to roost IMO.