Geithner secures more time to break US budget stalemate

[Gerald]

US Treasury Secretary Timothy Geithner has secured more time for Congress to negotiate a deal to increase the borrowing limit of the US.

Stalemate over the talks means the US risks defaulting on its debts because it will be unable to borrow beyond its $14.3 trillion (£8.6tn) limit.

Mr Geithner had previously said the deadline for a deal was 8 July.

But in a letter to Congress he said that better tax receipts meant the deadline could be extended to 2 August.

Republicans want to tie any agreement on the US budget to spending cuts, especially in the healthcare programme.

The Obama administration has proposed a $4tn package of budget cuts, but the Republicans say they do not go far enough.

Despite pushing back the deadline, Mr Geithner nevertheless warned Congress of the need for a urgent resolution to the impasse.

He said in his letter: "While this updated estimate in theory gives Congress additional time to complete work on increasing the debt limit, I caution strongly against delaying action."

http://www.bbc.co.uk/news/business-13264170


Note: 3 May 2011 Last updated at 08:59 GMT

[Armistead]

The longer you delay it the more unstable the markets will be. Still, with government never seems about the money, but where they spend it. In the end real studies show neither party has a plan that really cuts much of anything, just moves money around to where each party wants.

Ryan's plan eliminates all the new coverage in the Affordable Care Act and most estimate that would add another 15-30 million
people to the uninsured. Add to that cut another big chunk out of Medicaid, food stamps and other social services. That saves about 3 trillion. But he wants to give that all back by making the Bush tax cuts permanent, that would cost 4 trillion. Of course this is back to voodoo economics, give the money to the corporations and top percent and they'll invest it in america causing the trickle down effect.

Guess it's a matter of who you trust.

[Gerald]

Yes, time goes so it will be to gain momentum, in order to steer the ship

[kraznyi_oktjabr]

Originally Posted by Armistead

... That saves about 3 trillion. But he wants to give that all back by making the Bush tax cuts permanent, that would cost 4 trillion. Of course this is back to voodoo economics, give the money to the corporations and top percent and they'll invest it in america causing the trickle down effect.

Guess it's a matter of who you trust.

This is feature in American politics which I don't understand. Why some politicians in U.S. believe that cutting corp & rich taxes automatically brings trickle effect to America? Corporations are after all free to spend their money where ever they want and I doubt they would invest to America. There is just no sensible reason to do so.