Moody s to review the U.S. debt rating

July 14, 2011, updated at 21: 41 Ben Bernanke said that a default on us debt would be "a major crisis" rating agency Moody's said it may cut the debt rating us AAA, citing the "possibility of increase" of United States could default on its debt obligations.

The Agency warned the possibility that United States does not raise its limit of debt legal in time to avoid the default was low but not insignificant.

It came as a fifth day of talks between the parties loomed in Washington after an end of the meeting of the bad-tempered Wednesday.

U.S. Fed Chief Ben Bernanke has said that a defect could cause a "major crisis".

The emotions were growing on Capitol Hill on Thursday, as most leading Senate Harry Reid, Democrat, took the Senate floor to denounce the Republican House Leader Eric Cantor.

During the Wednesday night talks, Mr singer apparently said President Barack Obama that increases revenue is simply not going to happen and was urged to accept an agreement in the short term rather than a budget that would be through the presidential elections in November 2012.

That brought a strong reaction from Mr. Obama, who said: "it is enough." ... See you all tomorrow, "before leaving the room."

?Rising default risk?

Obama President needs the one led by the Republican House of representatives and Senate Democrat held to sign an agreement to close the deficit of United States, at the time that allows Washington to call given past a deadline of August 2.

Continue reading Government history main U.S. currently runs a budget deficit of. 5tn $1, which requires to issue debt in the form of letters from the Treasury, bonds and other debt of securitiesPublic was. 14 on May 31, up from $10 $3tn. 6tn to Mr Obama took office in January 2009Most is held by the publicwith the rest held in US Government accountsCongress has voted to raise the limit of debt of U.S. 10 times since 2001

Sources: US Treasury, service of the Congress, the Congressional Budget Office research

Moody s to review the U.S. debt rating

He said it is willing to accept cutbacks to social safety net programmes estimated for the Democrats, while tax hikes for the rich.

The Republicans have rejected the proposal of this last, saying it could choke off investment and the growth of employment.

Moody's became the first of the big three – the other standard rating agencies & Poor and Fitch - to place to the United States of the triple-A on review for a possible lower category.

"The revision of the rating of bonds of the Government of United States is driven by the possibility that the limit of debt not will be raised in time to avoid a loss payment of interest or principal of notes and bonds in circulation," said Moody.

"As such, is a small but growing risk of short duration default."

United States reached its ceiling of 14.3 billion (￡ 8.9 billion) debt on 16 may, but has used charges and accounting adjustments, as well as receipts of higher taxes than expected, to continue to operate.

When reached the contraction in the past, regularly voted Congress to raise the ceiling of the debt, Government access to the money it needs.

This year, however, the newly empowered Republicans have demanded steep cuts in spending instead of raising the limit of the Government.

Mr Obama has proposed a package of up to 4 billions of dollars in reducing the budget deficit over the next 10 years, but the Republicans have rejected and other proposals because it calls for raising taxes.

'Child'

In the Senate Thursday Reid named Mr Cantor "childish" and said should not be part of the debt negotiations more.

Mr Reid said that if some Republican leaders were well prepared to "negotiate in good faith", Mr singer "has shown that even should not be on the table".

Meanwhile, Mr singer, Mr Obama and other Congressional leaders on Thursday afternoon held talks aimed at forging an agreement. No new talks were scheduled for Friday.

On Wednesday at the White House, President Obama said they have required that the budget negotiators are common at the end of the week ground.

He made the remark to strongly reject Mr Cantor call for an agreement in the short term based on cuts, according to democratic officials and Republican aides familiar with the talks of the spending.

In testimony before Congress on Wednesday, Mr Bernanke said that the Fed could renew stimulus efforts if the economy remains weak.

The Fed expected to keep its low interest rate policy in place "for a long period", he said.

Analysts said that Mr Bernanke had only raised the possibility of additional stimulus and I was not saying that it was necessary.

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