Obama sparring with Boehner shows compromise on deficit reduction not close - Bloomberg

President Barack Obama holds in the talk in the State dining room of the White House in Washington, D.C., United States, on Monday, August 8, 2011. Obama, breaking his silence on the demotion of a federal debt, said that the main obstacle to the United States is to solve the lack of political will in Washington, the country's problems.President Barack Obama holds in the talk in the State dining room of the White House in Washington, D.C., United States, on Monday, August 8, 2011. Obama, breaking his silence on the demotion of a federal debt, said that the main obstacle to the United States is to solve the lack of political will in Washington, the country's problems. Author: Andrew Harrer/Bloomberg

President Barack Obama and House Republican leaders showed up no signs of the backup from their attitudes how to cut the government deficit as U.S. stocks fell the best will hold since December 2008 on concerns that slowing the economy.


Make Obama, his first public comments since standard & poor's U.S. credit rating AA + AAA on 5 August, downgraded yesterday, said that "Common sense and compromise" should lead plan deficit reduction, spending cuts and more taxes includes.


"There is no shortage of plans or guidelines which is the problem here," said Obama in the White House. "There is a lack of political will in Washington."


House Speaker John Boehner and Eric Cantor majority leader responds with instructions say that both sides find cuts on compulsory expenditure, such as such as social security and Medicare, enough progress on the long-term deficit should be able.


"Republicans demonstrated that this problem can be solved without destroy tax increases," Boehner said.


Both sides sought to reassure global investors, while betting that should have already agreed a so-called super Committee of legislators, which with at least $1.2 trillion in deficit reductions of more than $900 billion, Republicans and Democrats positions for the negotiations on the alignment. The Panel was in the context of a law, the the nation debt ceiling raised set up, and if this fails, a trigger mechanism would slash expenditure equally kick in defense and national programmes.


Concern over the S & P credit downgrade and the State of the economy helped push U.S. stocks lower. The S & P 500 index lost 6.7 percent to 1,119.46 at 4 am yesterday in New York City, the Bloomberg fell its lowest level since September, as all 500 shares for the first time tracking data in 1996 since the beginning. The Dow Jones industrial average plunged 634.76 points, such as about US $2.5 trillion of global equities has been deleted.


Asian shares a sixth day with the MSCI Asia Pacific index to 4.1 per cent and the Japanese Nikkei 225 stock is average 3.74 per cent as of 1:08 pm in Tokyo! Standard & poor's 500 index futures slid 2.4 percent.


An increase in the treasuries, benchmarks of the United States 34 billion dollar-debt market, the 10-year note yield sent 22 basis points to 2.34%, its lowest level since January 2009, and the two-year rate slipped to a record low.


U.S. assets


Obama tried to ease public concern over the stock and credit ratings drop, relying on the productivity of US workers, the strength of the universities in the country and the country's history of entrepreneurship and innovation.


"Markets will rise and fall, but this is the United States of America," he said. "No matter what can say some agency, we have always and will always have an AAA country."


Still, he said, the S & P action "a renewed sense of urgency" for members of both parties to come to bring a plan for the State budget under control and shrink deficits should create.


Obama promised to provide its own recommendations in the "coming weeks." He repeated his attitude also, that any solution of logical values "tax reforms, that is those questions that their fair share and modest adjustments to health programs such as Medicare numbers can afford it."


Cantor, Virginia, said that "a trade we simply cannot afford cuts in taxes for modest changes in entitlement programs is to make."


As a result, S & P wrote the US budget position analysis, Republicans will come under "Pressure on tax increases trade-offs", Cantor was in a memo to House colleagues from his Office. "Will be said that there no other way forward." "I respectfully disagree."


While Obama's promise, welcome to claim certain reforms programs arrange said Boehner of Ohio, to raise taxes is "simply the wrong way." Legislator spending must focus on cutting, he said.


The business, the Obama House Republicans last week visited 917 billion dollars of spending cuts over the next decade. The Super Committee - the two top Republicans and Democrats in the House of representatives and Senate are three members of Aug. 16 call - attempts, with at least an additional $1.2 trillion in deficit reduction come.


Downgrade U.S. debt, said S & P in a statement that the plan "is left behind, which in our view, would be required in the medium term to stabilize the Government debt dynamics."


S & PS decision was with the other two major ratings services, Moody's investors service and Fitch Ratings. 2 Confirmed both their AAA notes on U.S. debt on Aug. Obama signed the debt deal.


Obama and the two Republican leaders agreed that the focus of the White House and Congress should on generating more economic growth, even as their recipes differ.


"The challenges go, the stock market", said Obama a lot of about 140 donors last night fundraiser in Washington. "Corporate were profits up." "The credit markets have stabilised, but what is absolutely correct, even before this last couple days on the stock exchange is the recovery was not fast enough happens."


Boehner said that the answer is the provision of "Economic security and creating an environment in which companies can invest and jobs to flourish."


Cantor said that House Republican leaders are preparing a package of legislation to a vote in early September, which would "reduce or eliminate jobs on regulatory obstacles."


Americans "want less intergovernmental-no more taxes, you will find under" as Cantor.


The reporter on this story contact: Margaret Talev in Washington at mtalev@@bloomberg.net


The editor responsible for this story contact: Mark Silva in the msilva34@bloomberg.net.


via:Top News Google

Obama sparring with Boehner shows compromise on deficit reduction not close - Bloomberg