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Saturday
Jul162011

Political Deadlock Persists as Debt Ceiling Deadline Approaches

Jupiterimages/Thinkstock(WASHINGTON) -- Republican leadership announced Friday that the House of Representative will consider alternative legislation to solving the debt ceiling next week.

The legislation—called Cut, Cap and Balance—would raise the debt ceiling while cutting discretionary spending by $111 billion in the 2012 fiscal year, capping spending over the next ten years, and amend the Constitution to require a balanced budget.

But some Republicans on Capitol Hill, such as Representative Paul Broun (R-Ga.), say they aren't willing to discuss any plan that would lead to raising the debt ceiling.

Rep. Broun told ABC's Jonathan Karl that he would vote against any legislation that would raise the ceiling, "no matter what."

It's because of stances like these in the Republican Party that another plan presented this week by Senate Minority Leader Mitch McConnell has been gaining attention.

The plan would give the president the authority to raise the debt ceiling, while bypassing the necessity for Congress to vote for the measure.

The president is dealing with internal party divisions of his own. While the president says he's willing to make some difficult concessions in reaching a deal, he may have difficulty convincing his own party to go along.

House Democratic Leader Nancy Pelosi said Friday that Democrats will not sign onto a deal that cuts into Medicare or Social Security.

If political leaders fail to reach an agreement by the Aug. 2 deadline, the government would be unable to pay 40 percent of its bills, which would cause interest rates to rise throughout the country, affecting mortgages, credit cards, and other personal loans.

There will also be implications in the international financial markets, as credit rating agencies would downgrade the U.S. debt rating.

Copyright 2011 ABC News Radio







ABC News Radio