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IPFS News Link • Government Debt & Financing

“The Debt Ceiling” and Obama’s Budget Cutting Agenda

• Global Research

Obama couched his plans with a heavy dose of lying demagogy, seeking to present his administration as a force of opposition against Republican demands for austerity. In fact, differences between the two parties center largely on tactical disagreements over the precise mechanism by which cuts will be imposed.

The bulk of the press conference was focused on threats from House Republicans to refuse to raise the US debt limit without an agreement on huge spending cuts. The debt ceiling, which is due to be breached sometime next month, must be raised by Congress. If Congress does not do so, the federal government will be unable to pay some of its bills.