Monday, August 1, 2011

Pres. Obama's Message On The Debt Deal

In a message to supporters, President Obama outlines the agreement he reached with congressional leaders to meet our financial obligations and reduce our debt.

The graph below, from the White House represents the President's explanation of the deal. Text at the bottom of the graphic states, "Social Security and Medicare will be protected from cuts."

President Barack Obama announced an 11th-hour deal with Congress to avert an unprecedented default on US debt payments, which would have sown chaos across the global economy.

With just two days left before the United States would run short of cash, Obama and his Republican foes said after round-the-clock negotiations that they had reached a framework for more than $2.4 trillion in spending cuts.

"I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default, a default that would have had a devastating effect on our economy," Obama said.

"This process has been messy; it's taken far too long," Obama told a hastily convened evening press conference. "Nevertheless, ultimately, the leaders of both parties have found their way toward compromise."

But, the package still needs approval from Congress, which could vote as early as Monday. Leaders of the Democratic-held Senate and Republican-led House of Representatives were working to rally polarized lawmakers.

The plan faces opposition both from the conservative "Tea Party" movement, which favors sweeping spending cuts, and liberal Democrats who want taxes on the wealthy before any thought of cutting social welfare programs.

As described by Obama and congressional leaders, the deal would raise the country's $14.3 trillion debt ceiling by at least $2.1 trillion. It would also make more than $2.4 trillion in spending cuts in two steps, including through a special new committee required to submit proposals by November 23.

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