Sunday, July 10, 2011

Obama, conservatives still at impasse on debt deal

Washington – President Obama remains deadlocked with conservative Republican Senators and Representatives on a debt reduction package following a late-night Sunday conference.

Adoption of a spending cut is a precondition of conservatives in both houses of Congress in return for their assent to increasing the $14.3 trillion debt ceiling so that U.S. Treasury bonds won't go into default.

The president has reportedly returned to demands for a $4 trillion spending reduction spread over 10 years while House Speaker John Boehner is holding out for a $2 to $2.4 trillion spending cut regimen. He and others objected to the president's proposal, saying there is not enough time to negotiate such a deal in the 10 days remaining.

They have agreed to meet again on Monday in the Cabinet Room at the White House. President Obama has scheduled a press conference for the morning hours during which he will continue to speak directly to his constituents and hold out for the $4 trillion spending cut.

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