Obama keen on debt deal

US: US President Barack Obama held an urgent White House summit with key Democratic allies Saturday as his Republican foes said fever-pitch efforts to avert a disastrous debt default would soon pay off. “That’s not true,” Democratic Senate Majority Leader Harry Reid said, pouring cold water on the upbeat Republican message after talks with Obama, Vice President Joe Biden and Democratic House Minority Leader Nancy Pelosi.

With three days before a midnight Tuesday deadline, Obama stayed largely out of sight but warned in his weekly address that “very little time” remains to reach a deal to raise the $14.3 trillion dollar US debt ceiling.

The US economy hit that limit on May 16 and has used spending and accounting adjustments, as well as higher-than-expected tax receipts, to continue operating normally — but can only do so through August 2.

AFP