After voting to raise US Debt Ceiling a record seven times in George W. Bush's eight years presidency, the Republican Party is now dragging its feet to raise it once unless they get their way - further reduction in taxes for the rich and drastic cut in social services for the poor i.e. medicare, social security etc. While Bush reduced taxes of his own accord, Republican Party never insisted on cuts to social services during his presidency.
By not increasing the debt ceiling, Republicans are holding US and world economy hostage as without the increase, US Government will most certainly start to default on its obligations from August 2, 2011 onwards. The debt ceiling should have been raised in May 2011, but Republicans have been playing hard ball, but now it is time for Republicans to deliver.
After pulling out of talks with President Obama Friday, the Speaker of the House probably realizes his folly and is now desperately trying to come up with a solution before the Asian markets open Monday. Though he has left it rather late, but one hopes that his efforts will bear fruit.
The Wall Street is extremely worried that if debt ceiling is not raised, default by US Government is imminent. If that happens, all hell may break lose in the financial markets. It is time for Wall Street and big Corporations (the main financiers of Republican party) to impress upon them that unless a deal is done within hours, all further funding to Republican party will cease.
Most Americans know what is going on and a majority of them are with President Obama on this. Perhaps the President should set a final deadline of 12 Noon (EST) Sunday and if no agreement is in place, he should go directly to the American public and take them into confidence. They should know who is playing havoc with their future.