The question of the limitation of federal debt already relieved to 14

The issue of the federal debt will dominate the work of the American 112eCongrès. On the eve of the inauguration of the new Parliament, the White House launched a warning in the House of representatives where Republicans now have a large majority (242 seats against 193 for Democrats). Absence of a rapid agreement on the lifting of the limits of the federal debt to 1,430 billion, the credibility of the Washington signing could be seriously compromised. A one and a half months of the presentation of the budget, 2012, which was delayed until the week of February 14, Obama administration intends to warn the Congress against the temptation of battles political on the federal debt management and control of the public deficit (1.290 billion in 2010).

The sovereign note risk

"I do not see that has an interest in playing with the debt ceiling." "If we exceed the ceiling, it would be unprecedented in American history and would have a catastrophic impact on the economy," launched Sunday Austan Goolsbee, Senior Economic Advisor to the White House in an interview to ABC.

The question of the limitation of federal debt already relieved to 14.300 billion in February 2010, is one of the priorities of the new Congress. Technically, without a vote in the next few weeks on a new raising of the ceiling of the federal debt, US Treasury could exceed the current limit in the first quarter. In highlighting the risks of a deterioration of the American sovereign note, the White House intends to put pressure on the new Republican majority in the House to find an agreement more quickly on a plan of control of public expenditure that does not compromise the recovery in the short term.

"At this stage, I am not for a recovery of the debt ceiling", however warned the Republican representative of Minnesota, Michele Bachmann. As a number of representatives of the Tea Party movement, who have been elected on promises to reduce the Federal deficit, considers that the priority of the Congress is now purging of past excesses and the drastic reduction in the level of public spending.

Despite the reluctance of some elected officials, Barack Obama has good hope to find an agreement with the new Republican speaker of the House, John Boehner, a compromise concerning the limitation of the debt in exchange for some commitments on future cuts.

Previous to 1995

The priority of the White House is to do everything to avoid the precedent of the 1995 budget stalemate that had resulted from a clash between Bill Clinton and the Republicans under his first mandate. But to the Federal deficit 1.290 billion for the fiscal year 2010, the bipartisan commission on the reduction of the deficit created by Barack Obama has not yet managed to agree on a plan to cut 4,000 billion of debt by 2020 and the public deficit to 400 billion by 2015as he had been introduced by its two co-chairs, Erskine Bowles and Alan Simpson, the beginning of December.

"The reason for this important deficit this year is that we go out of the worst recession since 1929," pleaded Austan Goolsbee on ABC. The democratic administration established the healthy the recent compromised fiscal impact on 858 tax cuts to support the recovery and reduce spending in a second time. But the battle for the 2012 budget promises to be fierce in the Congress.