Geithner confident U.S. debt agreement

Updated July 24, 2011, at 13: 23 GMT follow-up of comments made by Mr Geithner after a meeting on Saturday make breakthrough U.S. Treasury Secretary Timothy Geithner said that he hoped the White House and Congress can agree on an agreement to reduce us debt.

Your comments to CNN come after talks between President Barack Obama and Congressional leaders on Saturday was able to make a breakthrough.

A debt reduction agreement must be signed before the United States can raise their current. $14 3tn (￡ 8. 7tn) limit of loans.

This limit is due to be reached by August 2.

At this point the treasure of the United States might have no money to pay all their bills - that could lead to interest rate increases, threaten the economic recovery of U.S. and activate the global recovery.

Mr Geither said: "it is unthinkable that this country will not meet its obligations on time..." "It will not happen."

He added that a proposed Republican to first raise the debt limit and then negotiate the spending cuts, was "irresponsible" and could not be agreed upon by the Democrats.

"Careless games"

The point of contention is the question of taxes.

Obama President wants the agreement of debt reduction to include a combination of cuts and tax rises, but Republicans in both chambers of Congress are strongly opposed to the latter.

The Republicans have a majority in the House of representatives.

Continue reading Government main U.S. history must do 4 $. 6tnremaining $9. 7tn to investorsThey include banks, pension funds, individual investors and Governments state and local/foreign China: $1. 16tn, Japan: $0. 91tn, UK:. 35tndeficit $0 is the annual difference between spending and revenue, $1. 29tn in 2010Congress has voted to raise the limit of debt of U.S. 10 times since 2001

Source: US Treasury, may 2011, Congress, the Congressional Budget Office research service

Mr Obama was added to the negotiating table Saturday his Vice President Joe Biden, Republican House Speaker Nancy Pelosi House Democratic minority leader John Boehner, leader of the Democratic majority of the Senate Harry Reid and Senate Republican Leader Mitch McConnell.

After the meeting, the White House urged Congress to "refrain from playing reckless political games with our economy... and do their job," avoiding default and cut the deficit.

Mr McConnell and Mr Boehner issued statements saying that the intention "to find a bipartisan solution significantly reduce Washington spending and to preserve the full faith and credit of the United States".

Aides said they hoped to work with the weekend to reach a draft Bill acceptable to both sides on Monday.

On Friday, Mr Boehner accused the President of the movement "goal posts", saying that they had been close to an agreement until Mr Obama demanded $400bn in tax increases of $800bn in income would have been obtained through a complete rewrite of the tax code.

Mr Obama had declared his "extraordinarily fair" agreement, offering cut $650bn Medicare, Medicaid, and other rights, as well as slashing $1tr discretionary spending.

While the Republicans in Congress are unwilling to consider the new tax increase, their democratic counterparts are opposed popular healthcare of court and programs of welfare for retirees and the poor.

A member of the Government of the United Kingdom the arena on Sunday, with Vince Cable Business Secretary calling leaders Republican "right wing nutters".

He said that a U.S. debt default would harm the global economy.

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