News / USA

Obama: Debt Limit Increase Requires Spending Cuts

President Barack Obama (file photo)
President Barack Obama (file photo)
TEXT SIZE - +

President Barack Obama says a failure by the U.S. Congress to raise the nation’s debt limit could cause another world recession. The president says he is confident the limit will be increased.

Mr. Obama is warning of severe consequences if lawmakers do not agree to increase the amount of money the government can legally borrow. “It could really destabilize world financial markets, and you could potentially have a significant financial event like the one that we have just gone through, and could plunge the world economy back into recession,” he said.

In an interview Friday with The Associated Press, the president urged fast action to raise the debt ceiling from its current legal limit of almost $14.3 trillion.  He said he believes it will be done.

“I am confident we are going to raise the debt limit.  We always have.  We will do it again.  And one of the encouraging things in the meetings with both the Democratic and Republican congressional leaders is that they all agree that it needs to happen,” he said.

However, Mr. Obama acknowledged that he will have to compromise with the majority Republicans in the House of Representatives, and agree to reduce government spending.

The second-ranking House Republican, Eric Cantor, said Friday lawmakers in his party are insisting on spending reductions.

“We are united in cutting spending.  We are uniting in promoting growth.  And we are united in the fact that we do not believe that we should be raising taxes in this tough economy.  All of these things, I think, set us apart from members in the caucus on the other side of the aisle,” he said.

The House Friday passed Representative Paul Ryan’s fiscal 2012 government budget proposal, which the president sharply criticized this week.  No Democrats voted for the plan, and the Democratic-majority Senate is not likely to pass it.

Mr. Obama has been especially critical of the Ryan plan’s proposed extension a tax breaks for upper-income Americans and cuts in social programs.

Still, the president agrees with top Republicans that spending will need to be curtailed.

“We both want spending cuts.  We both want to make sure that we are not wasting taxpayer dollars.  There are some fundamental differences in overall approach,” he said.

In the interview, the president also said U.S. and NATO forces in Libya have prevented a wholesale slaughter, despite a military stalemate on the ground.

Mr. Obama said he does not see a need for the U.S. to again participate directly in enforcing the no-fly zone against Libyan leader Moammar Gadhafi’s forces.

He said Mr. Gadhafi is under increasing pressure to leave.

You May Like

Wikipedia Proves Useful for Tracking Flu

Technique gave better results than Center for Disease Control (CDC) and Google’s Flu Trends More

Turkish Law Gives Spy Agency Controversial Powers

Parliament approves legislation to bolster powers of intelligence service, which government claims is necessary to modernize and deal with new threats Turkey faces More

Video Face of American Farmer Changing

Average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Face of American Farmer is Changingi
X
Mike Osborne
April 18, 2014
The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid