Obama warns republicans of dire consequences

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Obama warns republicans of dire consequences

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President Obama says difficult decisions to be taken to avert US default.

26 July,2011 12:53 pm

President Barack Obama described the fight over raising the limit on government borrowing and avoiding default on U.S. debt as a partisan three-ring circus and blamed the crisis on the refusal of many Republican lawmakers to compromise.In a hastily arranged nationally televised speech Monday night, the president said the US. was dangerously close to default, and warned of a reckless and irresponsible outcome without a compromise solution by an Aug. 2 deadline. He urged Americans to make their voices heard and let their representatives know they support a balanced approach to reducing the deficit.House Speaker John Boehner, who leads the Republican-dominated House of Representatives, offered a nationally televised rebuttal minutes after Obamas speech, accusing the president of seeking a blank check today and declaring, this is just not going to happen.Obama and Boehner spoke as the political stalemate over raising the debt limit deepened despite the introduction of new plans by both Boehners House Republicans and the Democratic-controlled Senate under the leadership of Sen. Harry Reid.Decrying a partisan three-ring circus in the nations capital, Obama assailed the newly minted Republican plan to raise the nations debt limit as an invitation to another crisis in six months time. He said congressional leaders must produce a compromise that can reach his desk before the deadline.Without signed legislation by days end on Aug. 2, the Treasury will be unable to pay all its bills, possibly triggering an unprecedented default that officials warn could badly harm a national economy still struggling to recover from the worst recession in decades.Despite warnings to the contrary, US financial markets have appeared to take the political maneuvering in stride so far. Wall Street posted losses but with no indication of panic among investors.Republicans insist on deep cuts in spending in return for their votes to raise the borrowing limit. The Republicans, under the powerful sway of the small-government, low-tax tea party movement, have consistently refused Obamas request for a balanced approach to deficit reduction that includes both spending cuts and tax increases.