Despite the difference in the volume of cuts, the main friction is now in the duration of the agreement. The Republicans are willing to accept only a short term plan, which would lead to a new decision on the debt ceiling early in 2012, the year in which presidential elections are held. The Democrats are opposed, as has said President Barack Obama, who will seek re-election in those elections, since they consider essential for the economy to raise the debt ceiling by a substantial period of time, at least until 2013. Comprehensive and balanced agreement in recent days, the White House seems to have taken some distance, after a speech to the nation last Monday in which Obama warned about catastrophic consequences for the American economy not to raise the debt ceiling and called for a comprehensive and balanced agreement. In his regular daily press briefing, Jay Carney, spokesman for the White House, said that what is lacking is not time, but willingness to reach an agreement. However, Carney reiterated his confidence that you will reach a solution before August 2 and will prevent unpaid, because much is at stake. For his part, markets continued showing his growing doubts with the fall of Wall Street from a 1.59% at the end of the day, the new record gold prices, the weakening of the dollar against Asian currencies and the threat of revision of the debt rating from the as Standard & Poor s and s.
Moody However, Deven Sharma, President of Standard & Poor s was cautious today in a hearing before Congress stating who believes that U.S. would avoid falling into a suspension of payments and that, indeed, the greatest risk to the country is long-term debt. According to several Wall Street analysts have pointed out, the reduction of the maximum U.S. credit rating could make raising rates of Treasury bonds between six and seven tenths of a percentage point that would add 100,000 millions of dollars a year to the s interest on us debt. In addition, interest rates would skyrocket for American consumers, with the consequent negative cto about the economic recovery.