Sunday, July 24, 2011

U.S. debt, the ultimatum of Obama "I want a solution by Monday"

NEW YORK - 58 minutes of a tense summit and then all at home, "homework". Final deadline: "By Monday morning I want to have on my desk solution, you have to show me how America will avoid default." And 'well done, for now, the long-awaited summit at the White House on the debt. Started at 11 precise, Washington time, finished two minutes before noon.

A meeting convened by Barack Obama with the four most important exponents of the two parties: the Republicans John Boehner Speaker of the House and the Senate leader Mitch McConnell, the Democratic leader Nancy Pelosi and members of a number of Senators Harry Reid . "Like four schoolboys summoned by the dean," said the reporter allowed to peek in the pool a few seconds before the start of the summit.

Obama is increasingly frowned on Friday night after she jumped in surprise, his hypothesis of agreement: the right was ready to offer substantial cuts in spending, affecting also the two pillars of the welfare state that are Social Security (pensions) and Medicare (health care for the elderly).

Three thousand billion of sacrifice, the president had put together a package of maneuvers "tears and blood" had been agreed that until the last along with Boehner. Then the great refusal: the President of the Chamber was aware that his troops would follow him no MPs, especially the seventy members that refer to the Tea Party.

And then it starts all over again, but Obama knows what is the tactical game of Republicans. They should pull the rope to the extreme, approaching the end of that fateful Monday morning when the markets are likely to suffer the trauma of a downgrade of U.S. sovereign debt. Bringing the situation to the breaking point, with a "default" technically becomes increasingly likely (August 2 is the latest date, but already some federal agencies are short of funds today), they want to force the president to take only the responsibility of a "tear".

The right hand pushes the limit holes because the presidents of public debt (14.29 trillion dollars) assuming all the responsibility, not that there are the "footprints" of the right of a measure that raises the roof. And 'the dream of far right extremist, one that sees government spending as the ultimate evil, they can wash their hands of what will happen in the coming hours.

The important thing is not to give the anti-tax dogma, not even the elimination of tax privileges for the wealthy such as depreciation of private jets, or the deductibility of interest expense on the maxi-mortgages. The final tactical moves are therefore postponed to this Sunday. Obama waits for responses from the four leaders, hoping to mend even in extremis, a bipartisan agreement.

But John Boehner has already indicated what its stakes: no extra fees, and spending cuts must be worth twice the increase in debt.

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