GOP Leaders Revise Plan To Raise Debt Limit

by San Antonio Attorney

GOP leaders were cramming to save their budget plan to cut deficits on Friday after conservatives heightened an insurgence that added uncertainty on efforts to prevent a debt default on August 2.

House of Representatives Speaker John Boehner failed to get adequate support for his proposal on Thursday. It unveiled a falling out in the GOP that is barring efforts to arrive at an agreement to increase the U.S. debt limit before its deadline.

Economists caution that defaulting could shove the country’s unstable economy back into depression. Anxieties about the economy’s health elevated after the authorities reported that the nation’s gross domestic product in the second quarter grew at only 1.3 percent, a growth which is lesser than expected.

Representative Trey Gowdy, who had opposed Boehner’s appeals, said that they are making progress and estimated that it would pass within the day.

The House member is supported by the Tea Party movement. He told CNN that they will propose a plan to raise the debt limit in a responsible way.

President Barack Obama says that if Republicans and Democrats do not agree on a deal, the U.S. government is going to start using up all its money to cover all its obligations on August 2. Such possibility is making investors more and more nervous.

There are only a few days left before the deadline so the Department of Treasury could present an emergency plan at the earliest on Friday. It will be explained how the United States government would operate and pay its bills if Congress fails to strike a deal to increase its debt limit by more than $14.3 trillion. The emergency plan will possibly be unveiled after markets close on Friday.

For weeks now, investors had counted that the borrowing limit would be raised by Washington soon enough. However, with the deadline fast approaching, markets are shaken. On Friday, the U.S. dollar delved to its lowest against the Swiss franc as a result of debt concerns and weak economic growth.

While politicians figure out the solution to our problems individuals and businesses are taking a toll from their effects.  If you are an individual or business that has been affected by this horrible economy and need help.  Contact a San Antonio Bankruptcy Attorney for help with a Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, or Chapter 13 bankruptcy.

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