Time will be the problem for the President of the United States, Barack Obama. On July 11th, he will be part of discussions to break an agreement between the leaders of the Democratic and the Republican parties in Congress, making further lending to the federal state for the finance of its fiscal deficit, impossible.
The discussions, in order to prevent the suspension of the country’s payments, are going ahead again on July 11th, after the press conference given by the American President at 11.00 local time (18.00 time in Greece).
The White House didn’t give any information regarding talks that took place on July 10th, between Barack Obama and the leaders of of the democratic majority of the Senate and the republican majority of the House of Representatives. Right before they started, the American President stated, “That an agreement concerning the raise of the lending limit in the next ten days is crucial.” When he was asked if that is possible in such a short time, he answered: ”It has to be”.
The Finance Minister of the United States, Timothy Geithner, warned that “In case of no agreement, the consequences for the American economy would be a catastrophe.” Moreover, the general manager of the IMF Cristine Lagarde said: “That this could result in a stoppage of payments from Washington and a raise of the rates of interest, leading to serious consequences for the international economy”.