The White House recognizes that the internal debate on the debt affected the S & P downgrade
- Obama points out that Democrats and Republicans must work closely to draw up a long-term plan that will restore the country’s fiscal health.
- The agency S & P downgrades for the first time the rating of the US debt .
- China harshly criticizes the US after the downgrade of its debt and claims guarantees .
The White House has acknowledged on Saturday that the debate over the rise in the debt limit, “too long and too hostile “, has turned out to be one of the main factors for the Standard & Poor’s agency to decide to lower the sovereign debt rating of United States , for the first time in its history.
In an appearance before the media, White House spokesman, Jay Carney, called for increased efforts to clarify “the will, capacity and commitments” to “work to combat the fiscal and economic challenges more important”.
In the first statement from the White House after the announcement of the degradation of the ‘rating’, Carney insisted that what is important now “is for the elected leaders to unite to strengthen the economy and fiscal balance”.
While the doubt remains as to whether this loss of the highest debt rating, AAA, downgraded to AA +, will trigger a rise in interest rates, the White House appealed for unity and affirmed that President Barack Obama will “strongly encourage” both to the bipartisan fiscal committee as well as to the leaders of Congress to put aside their “political and ideological differences” and work for a greater economic recovery and a “more sensible” fiscal path in the long term, said Carney.
Promote job creation
The president of the United States, Barack Obama, urged Congress on Saturday to approve a series of measures that he considered will help boost economic growth and employment , in what will be a key factor for his re-election in 2012.
During his usual Saturday radio and Internet address, Obama said that, after the agreement approved this week to reduce the deficit and raise the debt ceiling, the priority now is to focus efforts on the growth of the economy and creation of jobs “with greater speed”.
Our job now is to create the conditions for citizens’ incomes to rise again “Our job right now has to be that we do everything possible to help people find work , create the conditions for companies to hire and that the incomes (of the citizens) go back up “, summed up the president.
Obama reiterated his request that, by resuming legislative sessions in September, Congress approve measures such as the extension of tax cuts for working families and the middle class, and the simplification of bureaucratic procedures to encourage the creation of jobs in the sector. private.
He also repeated his desire for Congress to approve free trade agreements with South Korea, Colombia and Panama, and the extension of the Trade Adjustment Act (TAA), which offers aid and training for American workers displaced by foreign trade competition.
Obama said both Democrats and Republicans must work closely to come up with a long-term plan to restore America’s fiscal health.
Economic recovery, a priority
The president recorded his message Saturday before the risk assessment company Standard & Poor’s downgraded the US debt rating of AAA, the maximum possible, to AA + , which fears an increase in interest rates and a higher economic instability in the country.
The economic recovery has become the highest priority of Obama ahead of the general elections of 2012.
According to the latest economic data, the unemployment rate registered a slight decrease from 9.2 to 9.1% last July due to the boost of hiring in the private sector . But in the quarter from April to June, the Gross Domestic Product (GDP) only grew by 1.3%, less than expected.
In that sense, the republican legislator of New York, Michael Grimm, said in the weekly speech of the opposition that the high rate of unemployment shows that the economic policies of Obama do not work .
He added that the cuts included in the agreement to reduce the deficit are not enough and repeated the Republican position that Congress should approve a constitutional amendment that requires a balanced budget.