President Barack Obama and top US lawmakers held day-long crisis talks Saturday but failed to find a breakthrough to avert a debt default just 10 days away that could rock the fragile global economy.
Behind closed doors at the White House and in the marbled halls of Congress, polarised US leaders struggled to come together despite fears that the stalemate could send global markets tumbling, starting with early Monday trade in Asia.
In a late flurry of frustration, Democratic Senate Majority Leader Harry Reid accused Republicans of bringing the world's richest country to 'the brink of default' by rejecting a deal that would last through the 2012 US election.
'Anything less than that will fail to provide the certainty that the markets — and the world — are looking for, risking an immediate downgrade of America's credit rating,' he said at day's end. 'Now is the time for cooperation.'
Hours earlier, Republican House Speaker John Boehner told members of his majority on a conference call that he hoped for a deal within 24 hours to soothe investor worry, notably in Asia, a participant told the AFP.
'We are working, and I'm confident there will be resolution. There has to be,' Boehner told the group, promising 'real cuts' in spending that help put cash-strapped Washington on a 'sustainable' path, the source said.
The speaker said the hard-fought negotiations centred on a two-step process to cut $3-4 trillion in spending over ten years as part of a deal to raise the $14.3 trillion US debt limit by an August 2 deadline, the participant added.
Source : New Age
