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US Economy - Page 8

Experts: US Economic System Near 'Collapse':

"I think that all the talk about default is really an admission that the United States is running a gigantic Ponzi scheme," said Peter Schiff, CEO of Conn.-based brokerage Euro Pacific Capital. Ref. Source 2

Economy US

The Senate votes 51 to 46 to table the "cut, cap and balance" bill passed earlier this week by the House, which would have imposed strict caps on all future federal spending while making it significantly tougher to raise taxes.

The House passed the measure on Tuesday, mostly along party lines. President Barack Obama said he would veto such a measure, favored by hard-line conservative, and Democrats in the Senate had said they would kill it if it passes the House. Ref. CNN

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Will It Work?

White House backs new Senate Democratic plan to raise the debt ceiling and urges the GOP to support it. Meanwhile, in a blunt challenge to the President, the GOP unveils a new debt bill. Ref. USAToday

Page 8 Economy US

Congress is at a stalemate over raising the federal debt ceiling, and Americans need to pressure their elected representatives to work out a compromise that will avoid a potentially devastating default, President Barack Obama told the nation.

In his seventh prime time televised address, Obama sought to increase pressure for congressional leaders to reach a deal on a "balanced approach" that would allow the government to continue borrowing money pay its debts after August 2.

The president singled out House Republicans for intransigence and said the political showdown is "no way to run the greatest country on Earth."

In his response, House Speaker John Boehner said the president's proposals fail to deal with the fundamental problem: that the nation spends more than it takes in.

"The sad truth is that the president wanted a blank check six months ago, and he wants a blank check today," Boehner said. "That is just not going to happen." Ref. CNN

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House: No vote tonight on Boehner's debt-limit plan

The House delayed a vote on Speaker John Boehner's plan to raise the nation's $14.3 trillion debt ceiling, as the GOP leadership tries to get votes for passage. Ref. USAToday

US Economy

The House of Representatives will not vote Thursday night on Speaker John Boehner's latest proposal to increase the debt ceiling and cut government spending, House Majority Whip Kevin McCarthy says.

The vote had been scheduled for 6 p.m. ET but was delayed as Boehner and Republican leaders met with individual members of their caucus who opposed the plan to try to get their support. Conservative Republicans in the House, many of them elected with tea party support, opposed the plan because they said it didn't cut enough federal spending or contain a requirement to balance the federal budget.

Boehner's plan would have generated $917 billion in savings over the next decade, matching the raising of the debt ceiling with dollar-for-dollar spending cuts. But it would require another vote to further raise the ceiling before the 2012 elections, which Democrats oppose.

Senate Majority Leader Harry Reid has said he has enough votes t o table the measure in the Senate, effectively killing it. Reid has proposed a competing measure to raise the debt ceiling.

The federal government will hit its debt ceiling on Tuesday and without congressional action will be unable to meet some of its financial obligations. Ref. CNN

US Economy - Page 8

Economic growth in the second quarter was tepid, the government reported Friday. And growth in the first quarter was much slower than initially thought.

Gross domestic product, the broadest measure of the nation's economic health, rose at an annual rate of 1.3% in the second quarter, the Commerce Department said.

While that's an increase from the revised 0.4% growth rate in the first three months of the year, it is hardly good news. The government originally reported that the economy grew at a 1.9% annualized rate in the first quarter. Ref. CNN

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The Republican-controlled House of Representatives voted to pass Speaker John Boehner's plan to raise the nation's debt ceiling and implement sweeping cuts in government spending.

The plan now goes to the Democratic-controlled Senate, where Majority Leader Harry Reid has said he has the votes to table the measure, effectively killing it. Reid is planning to spend the weekend pushing what top Democrats insist is a more centrist piece of legislation.

Boehner had scheduled a vote on the bill on Thursday but canceled it after he was unable to line up enough GOP votes. On Friday, Boehner tried to make the plan more appealing to conservatives by including a provision requiring congressional passage of a balanced budget amendment to the Constitution before the debt ceiling is extended through 2012.

The federal government will hit its debt ceiling on Tuesday and without congressional action will be unable to meet some of its financial o bligations. Ref. CNN