Obama calls for `Plan B' as US debt talks deadlock
27 Jul 2011
US President Barack Obama has called for an alternative plan, `Plan B' to save the world's largest economy from debt default, in case the sparring Republicans and Democrats failed to find common ground on the issue of enhancing government debt limit.
A deficit reduction plan put forth by the Republicans, meanwhile, got stuck by opposition from the ruling party, fading hopes of a compromise, and pushing the economy to a crippling debt default that could rock global markets.
Even as the two are searching for common ground on the debt reduction plan, voting on the deficit proposal by the top Republican in the Congress has been pushed to tomorrow instead of today.
Republican Speaker John Boehner, meanwhile, is reworking his bill after a review found it would cut spending by just $350 billion in 10 years against its claims of the $1.2 trillion reduction in deficit spending.
President Obama, however, has threatened to veto the Boehner plan, which is as good as dead.
The plan has also failed to win the backing of conservative Republicans, who wanted much heavier cuts to social programmes that are Democrats' forte.
