Barack Obama announces to increase debt limit

August 1st, 2011

US President Barack Obama announced yesterday that democrats and republican leaders reach an agreement about the debt limit to reduce the deficit and to prevent that the country enters in default.

The president said the agreement will have a cut-cutting of 1,000 billion dollars for the next ten years.

However this cut will not take place immediately in order to protect the weak US economy and there will be a study about the deficit reduction in the next months.

Obama also asked to democrats and republicans to make the right thing and support the proposal of increase the debt ceiling.

The cuts will be on scene in 2013 once it is rejected the tax reduction to richest people through a fiscal reform.