ohhmyyy

Democrats and Republicans are locked into a dangerous game of seeing who will crack first over the national debt crisis, with the White House warning that the next few days could be stressful for world markets and Americans.


According to the US treasury, America has to raise its $14.3tn (£8.77tn) debt ceiling by 2 August or risk defaulting for the first time. Economists warn a default will have a catastrophic impact worldwide.


Global stock markets suffered fresh losses on Thursday as the US debt talks remained deadlocked, leaving investors braced for shockwaves to rattle the financial world.

With no sign of a deal in Washington, there were heavy losses in Asia overnight. There was also a scramble to sell shares in Europe, as traders reacted to the worst day's trading in two months on Wall Street on Wednesday.

The US government moved to crush speculation that America has more time to resolve the crisis, insisting that the Treasury only has enough funds to last until 2 August.

"The problem is there is not enough money because we can no longer borrow money to pay all our bills. You're basically running on fumes," White House press secretary Jay Carney told reporters in Washington. "It is a crisis situation."

President Obama continues to push for a long-term deal to raise the debt ceiling. Republicans, though, are proposing a short-term extension - followed by fresh negotiations in 2012.

weh ! JGN LAH ECONOMY CRISIS. leaders, work hand-in-hand pls =( NAK FLY ! alahai cuaknye govt. tkde duit nnt ='S