Calls for US debt ceiling

hunted for a compromise to avert a default on the country’s debt.
Jittery stocks plummeted yesterday amid fears of global economic crisis, as President Barack Obama and his Republican rivals bickered over competing plans to avoid defaulting on US debt. Asian markets followed Wednesday’s big losses on Wall Street, as next week’s deadline approaches for US lawmakers to strike a deal to avoid a disastrous default.
Among the big losers, Tokyo, yesterday was 1,12 percent lower in early trading, while Hong Kong fell 0,95 percent and Sydney 1,23 percent.
the House of Representatives was to take up Republican Speaker John Boehner’s plan for raising Washington’s US$14,3 trillion debt ceiling in the face of US Treasury warnings the government cannot pay all of its bills past August 2.
Meanwhile, Australia yesterday urged US leaders to strike a “speedy” deal to resolve the potentially disastrous political deadlock over raising the debt ceiling of the world’s richest economy.
“I think like most finance ministers and government around the world, we’d like to see a speedy resolution of this matter, both in the United States and of course issues within Europe,” Treasurer Wayne Swan said.
The United States faces possible default or a downgrade of its debt rating unless president Barack Obama and rival Republican lawmakers can agree on raising the US$14,3 trillion debt limit ahead of an August 2 deadline.
If they are unable to strike a deal, it would damage Washington’s ability to borrow the cash it needs to pay its bills. Economists have warned the fallout from a US default or ratings downgrade could hit the global economy hard.
Swan, from the ruling centre-left Labour Party, laid the blame for the impasse at the door of the conservative US Tea Party movement. – AFP.