US moves closer to default

by umer | 10:39 AM in |

US moves closer to default--The United States had moved closer to a possible first ever default on the government's debt. This was after Speaker John Boehner ruled out a House vote on a straightforward bill to increase the borrowing authority of the nation without concessions from US President Barack Obama.

Treasury Secretary Jack Lew warned that the Congress was playing with fire with the ruling after no resolution was seen. Lew called on lawmakers to quickly pass legislation on re-opening the government. Lew also said to have a measure in increasing the USD16.7 trillion debt limit of the US.

The government shutdown is now on its sixth day. It had already caused hundreds of thousands of federal workers laid off from their jobs, government services on hold and national parks closed.

According to the Treasury Secretary, the US President had not changed his mind about increasing the country's debt limit. Obama had also not change his position about the demand of Republicans to change his 3 year old health care act and cut national spending costs.