Leaders in the U.S. congress have agreed to raise the debt ceiling as part a plan that requires congress to cut $1.5 trillion in spending over the next ten years.
President Obama addressed television networks on Sunday, saying the entire process was “messy” and has had an impact on the U.S. economy but is glad parties have found compromise. He said a “cloud has been lifted” over the U.S. economy.
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The deal raises the debt ceiling until 2013 with a guaranteed $900 billion in immediate spending cuts and $1.5 trillion in cuts over the next decade.
If congress cannot come up with a deal to raise the debt limit in 2013 with balanced cuts in spending, a balanced budget amendment will be voted on by the states and put in the U.S. constitution, requiring Congress to have a balanced budget.
Republican Speaker of the House John Boehner has been walking a tightrope with tea party members in Congress.
Both parties will present the deal to their caucuses tomorrow and congress still must approve the deal. A vote has not yet been scheduled to vote on the new deal.
As for Americans, 41% approve of the debt crisis, 52% disapprove, and 6% are not sure. The impact of the partisan fighting over the debt limit will likely have implications in the 2012 president elections.