News / USA

Obama 'Optimistic' Debt Reduction Can Be Achieved

President Barack Obama rolls up his sleeves during a town hall meeting to discuss reducing the national debt at Northern Virginia Community College in Annandale, Va., April 19, 2011
President Barack Obama rolls up his sleeves during a town hall meeting to discuss reducing the national debt at Northern Virginia Community College in Annandale, Va., April 19, 2011

U.S. President Barack Obama said he is "optimistic" and "hopeful" that American political leaders can reach an agreement to cut the nation's $14 trillion debt level by $4 trillion over the next decade or so.

The president, a Democrat, said Tuesday that the nation needs to adopt a spending plan for the coming years that is "fair with shared sacrifices," including higher taxes for wealthy Americans. His renewed call for increased taxes is at odds with a competing budget proposal supported by opposition Republicans, but he said he believes the two parties "can come together to get this done."

Obama, speaking to college students at a school just outside Washington, acknowledged that negotiations over cutting the nation's burgeoning long-term debt "won't be easy."

But he said it is "a good sign" that leaders of both parties agree on the need to trim the country's deficit spending while reducing its long-term debt level. The president said "we need to live within our means while strengthening our future" through increased spending for clean energy programs and educational programs.

Earlier, the U.S. treasury secretary, Timothy Geithner, said there is a "broad consensus" emerging on the need for debt reduction.

Geithner told the CNBC television channel that "the chances are better today" than they have been in a long time to lock in "credible targets" for debt reduction. He said it is necessary for the debt burden to start to decline so that the country's economic long-term growth prospects improve.

Geithner said he disagreed with the Standard & Poor's downgrade on Monday of the U.S. economic outlook from "stable" to "negative." He said the U.S. is a younger country than others with the "Triple-A" credit rating and that its commitment for various social welfare programs is less than in other countries with the same top rating.

But he warned that the U.S. must act to start its debt reduction. Geithner said that continuing to borrow 40 cents of every dollar it spends is "completely unsustainable."

Congressional Republicans and the White House have proposed competing debt-reduction plans.

Republicans in the House of Representatives have approved a far-reaching 2012 budget that would cut spending by $6 trillion over the next decade, partly by revamping and trimming government spending on health care for the elderly and poor. Obama has suggested a mix of spending cuts, as well as increasing taxes on the nation's wealthy.

China, which holds more U.S. Treasury bonds than any other investor, urged the U.S. to adopt "responsible policies" to trim its debt level to "safeguard investors' interests."

Stock exchanges across Asia endured selloffs on Tuesday amid investor anxiety over the S&P downgrade of the U.S. economic outlook.

Tokyo's main Nikkei index dropped nearly 1.25 percent by the close of the trading day, while Hong Kong's main index, the Hang Seng, lost 1.3 percent. Share prices in Shanghai, Sydney and Seoul also fell in response to Monday's downgrade.

S&P lowered the U.S. outlook over concerns the Obama administration and congressional lawmakers will not be able to agree on how to reduce the country's massive debt. The agency signaled it could cut the country's top-ranked credit rating within two years.  

That would lead to higher borrowing rates for the U.S. government, as similar credit rating downgrades have for debt-ridden European governments.

Some information for this report was provided by AP and AFP.

You May Like

Video Analysts: Beijing Parade a 'Bazaar' of Stolen Technology

Show commemorating victory over Japan in World War II involved long, medium and short range missiles, a range of tanks and 200 fighter aircraft More

Bernie Sanders Surge Reflects US Shift on Socialism

Although most analysts say it is unlikely he will get the Democratic nomination, Sanders' campaign opens up questions and issues that are otherwise marginalized More

Video On IS Frontline, Kurdish Fighters Ready for Offensive

Peshmerga soldiers say although they need more heavy artillery, they are poised to take the fight to the Islamic State extremists on their turf 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.
Drowned Migrant Toddler Photo Triggers European Outragei
X
Henry Ridgwell
September 04, 2015 11:36 AM
The harrowing picture of a drowned three-year-old Syrian boy washed up on a Turkish beach appears to have galvanized Europe’s leaders into doing more to address the refugee crisis. France, Germany and Italy issued a joint call Thursday for compulsory quotas of refugees for all EU states. But there were chaotic scenes in Hungary as police tried to force migrants off a train heading for Austria. Henry Ridgwell has more. And a caution, some of the images in this report may be disturbing.
Video

Video Drowned Migrant Toddler Photo Triggers European Outrage

The harrowing picture of a drowned three-year-old Syrian boy washed up on a Turkish beach appears to have galvanized Europe’s leaders into doing more to address the refugee crisis. France, Germany and Italy issued a joint call Thursday for compulsory quotas of refugees for all EU states. But there were chaotic scenes in Hungary as police tried to force migrants off a train heading for Austria. Henry Ridgwell has more. And a caution, some of the images in this report may be disturbing.
Video

Video Russians Observe 11th Anniversary of Beslan School Attack

This week, Russians have been observing the 11th anniversary of the attack by Islamic militants on a school in Russia's North Caucasus region that killed more than 330 hostages, including 186 children. The three-day siege and massacre that started on September 1, 2004 took place in Beslan, a town in the republic of North Ossetia, and is one of the bloodiest terrorist acts ever in Russia. VOA's Mike Richman reports.
Video

Video Native Americans Debate: Father Serra, Saint or Sinner?

Pope Francis will canonize an 18th century missionary to Spanish California during a papal visit to the United States this month.  But some Native Americans have criticized the elevation to sainthood of the missionary priest, Junipero Serra. VOA's Mike O’Sullivan has more from Los Angeles.
Video

Video Calais School Offers Another Face of Europe’s Migrant Crisis

Europe is facing mounting criticism over how it’s handling its biggest migration crisis since World War II. But not all Europeans believe building walls or passing repressive policies are the answer. A school for migrants in the French port city of Calais, is opening doors and building bonds across nationalities. VOA's Lisa Bryant reports.
Video

Video Kurdish Fighters on IS Frontline Ready for Offensive

Finger on the trigger, the Kurdish Peshmerga soldier stared across the dust at a village taken over by Islamic State extremists. The Kurdistan’s Khazir frontline, just 45 minutes from the Islamic State stronghold of Mosul. And at this point, the militants were less than two kilometers away. VOA's Sharon Behn reports.
Video

Video China Announces Troop Cuts at WWII Parade

Chinese President Xi Jinping Thursday announced plans to cut the world’s largest military force by 300,000 troops. The announcement was made during a massive military parade to commemorate victory over Japan in World War II. The event was shunned by most Western leaders and for some is raising fresh concerns about China’s military ambitions. VOA’s Bill Ide has more from Beijing.
Video

Video Russia-Japan Relations Cool as Putin Visits China for WWII Anniversary

Russian President Vladimir Putin is in Beijing for commemorations of the 70th anniversary of China's WWII victory over Japan. Putin is expected to visit Japan later this year, but tensions between Tokyo and Moscow over islands disputed since the war, and sanctions over Ukraine, could pour cold water on the plan. VOA's Daniel Schearf reports.
Video

Video Yemen ‘on Brink of Disaster’ as Medical Shortages Soar

Aid agencies warn Yemen is on the brink of humanitarian disaster – with up to half a million children facing severe malnutrition, and hospitals running out of basic medicines. There are fears Yemen's civil war could escalate as the coalition led by Saudi Arabia tries to drive back Houthi rebels, who seized control of much of the country earlier this year. Henry Ridgwell reports.
Video

Video Apps Helping Kenyan Businesses Stay Ahead of Counterfeiters

Counterfeit goods in Kenya cost the government as much as $1 billion each year in lost tax revenues. The fake goods also hurt entrepreneurs who find it hard to carve out a niche in the market and retain customers. But as Lenny Ruvaga reports from Nairobi, information technology is being used to try to beat the problem.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.

VOA Blogs