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U.S. Treasury Secretary Geithner: Default will not happen

07-25-2011 14:42 BJT

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U.S. Treasury Secretary Timothy Geithner said on Sunday that after careful review it was not an option for President Barack Obama to raise the debt ceiling on his own by invoking constitutional authority. Zou Yun has more details.

Congressional leaders were racing the clock to put together a framework for raising the nation's debt limit before Asian markets opened this morning. U.S. Treasury Secretary Timothy Geithner said in a TV interview that congressional leaders in both the Republican and Democratic parties insist the debt limit will be raised before the default deadline of 2 August 2011.

Geithner says, "This is a critical test for the American political system. It's a critical test for Congress and for the Republican leaders in Congress, because the eyes of the world are on us, and they are looking to see whether the United States of America, as it always has done in the past, will not just meet our obligations, pay our bills, but start to make some progress in these long-term fiscal problems."

The United States will not default on its debt, US Treasury Secretary Timothy Geithner (pictured) said, as the clock ticks down to reaching a deal by August 2 to raise the nation's debt ceiling.

Also on Sunday morning, House Speaker John Boehner said he's working to get out a two-part plan to raise the nation's debt limit, but he couldn't say whether it will include Democratic support. He flatly rejected the White House insistence that the plan get the country through the next election instead of offering a short-term fix while a longer-term solution can be worked out.

Meanwhile, Obama's chief of staff has said the president will veto any last-minute debt package from Congress unless it extends the nation's borrowing limit into 2013.

US House speaker John Boehner said, "I don't know, it may be pretty hard to put Humpty Dumpty back together again. But, my last offer is still out there. I have never taken my last offer off the table and they've never agreed to my last offer."

Meanwhile, Obama's chief of staff has said the president will veto any last-minute debt package from Congress unless it extends the nation's borrowing limit into 2013.

US President Barack Obama speaks with US Speaker of the House John Boehner during a meeting in the Cabinet Room at the White House in Washington, DC, on July 23.

Editor:Li Wanran |Source: CNTV.CN

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