United States President Barack Obama and key legislators have failed to reach an agreement with regards to the nation’s debt. If the U. S. fails to raise the debt limit, the nation could default on its loans. This could lead to an economic meltdown. President Obama

Its Treasury officials have been issuing warnings that if it defaults on its loans, it would result to catastrophic consequences for the nation’s economy. President Obama said that the Republicans are against any sort of compromise at the moment.

White House officials said that Obama wants to double the amount of money trimmed from the country’s budget deficit to $4 trillion. Obama will employ hard bargaining in order to get a deal done before the debt defaults in August.

The president said that both sides were frank and discussed the options available so that they can increase the debt limit and at the same time curb the government deficit. But nothing has been agreed upon.

Economists have been warning that if the debt limit is not increased, it will trigger a default on U. S. debt payments and might result into a recession. The talks between President Obama and the congressional leaders is part of the final move to reach a deal.