Washington, Jul 26
The political impasse on raising the US public debt ceiling is going beyond the national borders and provokes fears and warnings, because of the possible consequences.
The International Monetary Fund warned Monday in its annual report that the US economy risks suffering a strong impact if the Congress does act on time.
Meanwhile, Brazilian Finance Minister Guido Mantega said that the stagnation in the negotiations to raise the ceiling of the US public debt might lead the world to a critical situation.
From Hong Kong, US Secretary of State Hillary Clinton tried to calm down the nerves of people who see the situation with fear.
I am confident that the US Congress will do whatever needs to be done, and will reach an agreement on the ceiling of the public debt, and work with President Obama to take steps to improve our long-term fiscal outlook, said Clinton.
An agreement is necessary for a public debt estimated at 14.3 trillion dollars, to avoid a payment default before August 2.
US President Barack Obama and the highest officials in his administration, the Republican Party leader in the Chamber of Representatives, John Boehmer and other US leaders expressed their hope that the default will be avoided, but no one dares to predict when that is going to be.
After the failure of their predictions on the weekend, reports on plans and counter plans by the Republican and Democrat parties are filling spaces in the US main newspapers.
US Senate Democrat Party majority leader Harry Reid is preparing a plan with an increase of the ceiling of the US public debt of 2.7 trillion dollars, while Boehmer prepares an initiative with budget cuts on trillions of dollars and an increase of the public debt in two stages.
The environment was marked Monday by reports on the repercussion of the crisis on President Obama’s agenda and the postponement of activities for his re-election campaign and fund raising.
Some press media said the crisis will "spoil the President’s 50th birthday party" on August 4.
Obama postponed scheduled activities in California and Seattle and a fundraising event in New York, among others.
