Obama Urges Compromise Over Dangerous Debt Limit Stalemate

President Barack Obama used a nationally televised address on Monday night to increase pressure on the U.S. Congress for a solution to the nation's debt limit and deficit crisis.  With an August 2 deadline looming to raise the government's borrowing limit, Mr. Obama urged Americans to pressure lawmakers for a compromise.


After several weeks of tense meetings at the White House and on Capitol Hill, walkouts by Republicans, and warnings by credit rating agencies, Mr. Obama used his speech delivered from the White House East Room to ratchet up the pressure.


Earlier, Senate Majority Leader Democrat Harry Reid proposed a $2.7 trillion spending cut plan, with no cuts to Social Security and Medicare programs, a debt ceiling increase through next year's presidential and congressional elections, with a bipartisan committee recommending further cuts.


House of Representatives Speaker, Republican John Boehner's two-stage plan envisions $1.2 trillion in spending cuts, an immediate $1 trillion debt limit increase and another possible increase next year tied to conditions.  Boehner's proposal would also create a bipartisan committee and have lawmakers vote on a constitutional amendment for balanced budgets.


President Obama said Boehner's plan is part of a "dangerous game" that would result in repeating the same debate six months from now.


"This is no way to run the greatest country on Earth.  It is a dangerous game that we have never played before and we can't afford to play it now, not when the jobs and livelihoods of so many families are at stake.  We can't allow the American people to become collateral damage to Washington's political warfare.," he said.
Earlier, Senator Reid said Republicans appeared determined to embarrass the president and force a showdown over the debt limit issue.  He and fellow Democrat Charles Schumer said Boehner's hand was being forced by lawmakers closely linked to the conservative and libertarian Tea Party movement.
Senator Reid said "We should not let these extremists dictate the outcome of this debate or the direction of this country."
Schumer said "There are 100 people in the House who don't care if we default, any of them, who are extreme and ideological and who have not seen the House Republican leadership responsibly resist that."


In his own televised address after Mr. Obama's speech, Speaker Boehner said the president had engaged in a "massive spending binge" after which he requested a historic increase in the national debt.


"The sad truth is that the president wanted a blank check six months ago, and he wants a blank check today.  This is just not going to happen," he said.


Boehner says he expects the proposal he unveiled on Monday to pass in the House, and he predicted approval in the Democratic-controlled Senate, adding that if Mr. Obama signs it into law, the crisis atmosphere he accused the president of having created would disappear. 


In his address, President Obama did not issue a specific threat to veto the Boehner plan.  He said he wants congressional leaders to come up with a fair compromise in the next few days that can pass the House and Senate, and that he can sign.  He said Americans are "fed up" with Washington, "where compromise is a dirty word."


"The American people may have voted for a divided government, but they did not vote for a dysfunctional  government" Obama said.  "So I am asking you all to make your voice heard.  If you want a balanced approach to reducing the deficit, let your member of Congress know.  If you believe we can solve this problem through compromise, send that message."


While the president endorsed Senator Reid's proposal, he repeated that a long-term solution to the nation's fiscal woes needs to include savings in costly entitlement programs such as Social Security and Medicare to enable them to survive.


In the Senate, the Reid plan might be blocked by Republican procedural tactics, and it is unclear whether Speaker Boehner can get the votes to pass his plan, despite a strong Republican majority in the House.


Saying that default would be "a reckless and irresponsible outcome" to the debate, Mr. Obama said he is confident that compromise can be reached and that enough lawmakers from both major political parties will ultimately put politics aside.


U.S. and global markets around the world are waiting anxiously for the White House and Congress to come up with a solution to America's debt limit crisis.  Although financial markets have not suffered major losses, economists warn of serious repercussions from a rise in interest rates that would likely follow a U.S. default, with some saying there already has been significant damage to America's credit worthiness. VOANews

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Americans Turn to AIDS Drugs to Prevent HIV Infection

New research in Africa confirms that a once-a-day pill, used to treat patients infected with the virus which causes AIDS, also works to prevent HIV infection in healthy people. 


For 20-year-old New Yorker James Krellenstein, the battle against HIV and AIDS is not a theoretical one.

Not yet old enough to legally buy alcohol in the U.S., Krellenstein had a scare recently, which sent him looking for an emergency treatment to keep from contracting HIV. “I didn’t use a condom, I was drunk, it was not necessarily the wisest decision in my life. He could have been HIV positive, he could have been HIV negative, I don’t know and I don’t want to spend the rest of my life dealing with HIV," he said.


James went on a month-long drug regimen that uses HIV medicines to try to keep the virus from attacking the body’s white blood cells and spreading.


Noted AIDS researcher Dr. Anthony Fauci says it's essential that this emergency therapy be applied quickly to stop HIV infection. “Because if it infects one cell and that cell dies but doesn't infect another cell then the infection is over," he said.


Doctors are already using AIDS drugs to prevent infections the way James was treated - as an emergency measure.


But three new studies now seem to confirm that Truvada, a combination pill of two anti-retroviral drugs, may also be effective as a longer-term preventive measure, for people who might be exposed to HIV.


The new studies focused on what’s called Pre-Exposure Prophylaxis, or PrEP, in heterosexual couples in Africa. They confirm an earlier study showing similar results among gay men.


Dr. Raymond Martins heads an HIV/AIDS clinic in Washington. He says that while using the drugs to treat already HIV-positive patients helps keep them from transmitting it to others, PrEP is also a valuable tool to protect uninfected patients from the virus. “I’m very excited about this// We need a lot of options to prevent new HIV infections and pre-exposure prophylaxis looks like it’s going to one of those options," he said.


Researchers say using PrEP provides a 62 to 73 percent chance of preventing infection.


But while the drugs are effective, they are also expensive.


It’s at pharmacies like Whitman Walker Health that government subsidies substantially bring down the cost of these life saving medications. Though Gilead, the manufacturer, has recently made an announcement that will impact the developing world by making the medication available for as low as 21 cents per day.


Gilead has agreed to enter the UN Medicines Patent Pool, allowing their anti-retroviral drugs to be produced as a generic form for use in the developing world for both PrEP and HIV treatments.


Here in the United States, Gilead says once the US Food and Drug Administration approves this use, the company may make the PrEP drugs available through a program that helps those who can't afford prescriptions.


The medicines will still be produced as branded drugs in the United States, costing around $1,500 per month.


James Krellenstein’s story is not unique. He’s part of the only demographic in America with increasing HIV infections.


The U.S. Centers for Disease Control and Prevention estimates that gay and bisexual men, just 4 percent of the U.S. male population, are 44 times more likely than heterosexual men to become HIV positive.


“Most of my friends, straight or gay, don’t use a condom every time. I try to use a condom every time, I do, as a person who is relatively knowledgeable about this issue, it’s scary not to," Krellenstein said. 


Despite the benefits of the PrEP drugs, some public health experts worry they may lead to complacency about condom use.


Brant Miller, like other AIDS activists, says he plans to continue aggressively promoting condoms. “It is a good way to prevent the spread of HIV that we’ve been using and has always worked, and will continue to work regardless of whether or not people have access to PrEP," he said.


James Krellenstein says he is grateful he found a doctor to prescribe him anti-retrovirals, and he credits their use with his remaining HIV negative. He now runs a website called: PEPNow.org which links those seeking treatment with doctors who can help them.


“I think the best way people can protect themselves is if they feel like they’re at risk for HIV infection, or after a high-risk sexual encounter, go to your health care practitioner as soon as possible, just so you can know the various options to prevent HIV," said Dr. Martins. 


Options that have doctors and patients both hoping this little blue pill, taken daily, will become a game changer in the global struggle to end the AIDS epidemic. VOANews

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IMF Urges Swift Action on US Debt Dispute

As U.S. lawmakers and President Barack Obama haggle over plans to cut Washington's massive debt, the International Monetary Fund says the United States must take urgent and effective action on the issue. 


Monday, the newest IMF report on the U.S. economy said it is critical to the U.S. and other economies for Washington to promptly raise the legal limit on debt, while gradually cutting spending.


Leaders of the U.S. Senate and House of Representatives are working on competing plans to raise the federal debt limit and trim budget deficits. Congress and the White House failed to reach a bipartisan agreement Sunday, prompting declines on many stock markets Monday.   Gold prices also hit a record high. 


The leader of the majority party in the House, John Boehner, called on his fellow Republicans to support a short-term extension of the debt ceiling accompanied by a package of spending cuts.  Boehner earlier said he was not sure a bipartisan deal could be reached.


Senate Majority Leader Harry Reid, a Democrat, wants a longer-term deal on the debt ceiling, while also cutting trillions of dollars in spending. President Barack Obama has said he wants an ambitious debt-reduction package.


August 2 is the deadline for raising the debt ceiling and allowing the federal government to continue to borrow money.  The Obama administration and congressional leaders had hoped to announce a framework for an agreement before Asian financial markets opened Monday.VOANews

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Republicans, Democrats Unveil Rival Plans for Raising Debt Ceiling

U.S. House of Representatives Speaker John Boehner on Monday announced a new Republican, two-stage, short-term plan to increase the nation's debt ceiling.  On the Senate side, Democratic Majority Leader Harry Reid announced a longer-term plan that the White House immediately endorsed. The United States must raise its debt ceiling by August 2 to continue borrowing money to meet America's financial obligations. 


In Washington, it was another day of dueling news conferences and competing plans in the political battle over raising the debt ceiling and avoiding the country's first default.  This time, it was the Republican-controlled House of Representatives versus the Democratic-controlled Senate.


House Speaker John Boehner proposed legislation that would cut government spending and raise the debt limit in two different votes, one now, cutting spending by about $900 billion and another vote next year before the general elections.  Boehner called it a "common sense" plan that does not give Republicans or Democrats everything they want. "It does ensure that the spending cuts will be greater than the hike in the debt limit.  And secondly, there are no tax increases that are a part of this plan," he said.


President Barack Obama has repeatedly opposed a short-term extension of the debt ceiling, saying it could damage the nation's credit rating, and that the United States soon would face with the same partisan wrangling over raising the debt ceiling in just a few months.


Democrats who control the Senate also oppose a short-term extension.  Democratic Senator Charles Schumer condemned Boehner's proposal. "Speaker Boehner has refused to budge from his proposal.  He is even going ahead with a vote on the House on this plan though he knows it cannot become law.  This is a dangerous waste of time given that there are so few days between now and the deadline," he said.


Boehner called on Senate Democrats and the president to support the House Republican plan. "And I think it would be irresponsible for the president to veto such legislation because it is a common sense plan and will help us avoid default," he said.


Shortly before Boehner announced the proposed House measure, Senate Majority Leader Harry Reid proposed a plan crafted by fellow Democrats that would not reduce social welfare programs many Democrats support and not raise taxes, an issue crucial to most Republican lawmakers.


"This proposal satisfies Democratic core principles by protecting Medicare, Medicaid and Social Security, and provide the long-term extension of the debt ceiling that the markets are looking for.  The bill also meets Republicans's demands, two major demands," he said. "It contains no [new] revenues, and the amount of the cuts meets the amount of the debt ceiling increases.  They wanted a one-for-one [increase in the debt ceiling to budget cuts ratio] and that is what we gave them.  So now, all the Republicans have to do is say, 'Yes.'"


Reid's plan would reduce the deficit by $2.7 trillion and raise the debt ceiling until after next year's presidential and congressional elections.


After Reid unveiled his proposal, White House Press Secretary Jay Carney issued a statement endorsing it, calling Reid's plan a reasonable approach that should receive the support of both major political parties.


But Reid still has to get his bill past procedural roadblocks by Senate Republicans.  The House of Representatives will likely vote on Speaker Boehner's plan within the next few days.


Democratic Representative James Clyburn appealed for unity for the good of the country. "It is time for us to find common ground.  We have competing proposals from Democrats in the Senate, Republicans in the House.  It is time for us to meld those proposals, find common ground, lift the debt ceiling and let us restore stability in the lives of our citizens," he said.


But for now, with barely a week until the nation's debt ceiling is reached, the two chambers of Congress appear set to vote on their separate proposals.  Meanwhile, President Obama is scheduled to speak to the nation about the debt crisis on Monday night. VOANews

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European Officials Discuss Debt Crisis, Italy Vows Action

As European officials discuss how to prevent the eurozone debt crisis from spilling over into bigger economies, Italy's finance minister vowed its latest debt-cutting measure will be approved as fast as possible.   

Financial markets have been unsettled as debate continues on a rescue package for Greece. Italy is one of the most affected countries.  

Stocks and government bonds fell sharply Monday as investors cut their exposure to Italy on fears the eurozone's third-biggest economy could fall into the bloc's sovereign debt crisis.

German Chancellor Angela Merkel urged Italy to pass a government-proposed austerity package, adding she is confident the country would do what is necessary to shore up stability in the eurozone.

Finance Minister Giulio Tremonti said Italy would send markets a strong signal, adding the austerity package would be approved within a week.

The leader of Italy’s industrialists organization, Emma Marcegaglia, says with the spread so high, the austerity measure must be approved immediately because Italy needs to show cohesion. She says this is of fundamental importance. 

Finance Minister Tremonti has pledged the nearly $50 billion budget-cutting measure will bring Italy's deficit down to 0.2 percent of GDP by 2014.

Italy has a heavy debt load of around 120 percent of economic output, and has not had any trouble borrowing to refinance it. But it has weak growth prospects, an expensive pension system and lagging productivity.


*VOANews

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