Deadline to Raise Federal Debt Ceiling Looms

By KBJR News 1

July 20, 2011 Updated Jul 20, 2011 at 6:10 PM CDT

WASHINGTON. D.C. (Northland's NewsCenter)---While Minnesota's government has reached a compromise, the Nation's government has still not sealed a deal to balance the federal budget.

The nation currently rests $14.3 trillion in debt.

A proposal to raise the Nations debt ceiling by another $2.4 trillion failed in the House of Representatives by a vote of 97-318 nearly one month ago.

Both Republicans and Democrats demand that any increase in the $14.3 trillion debt be accompanied by a debt reduction plan.

Senator, Al Franken says raising the debt ceiling doesn't mean we are increasing the nations debt, but that its committed to paying it off.

"We do need to continue to borrow and that's what the debt ceiling allows us to do at a very low interest rate," Franken said. And the surest way to drive that interest rate up would be to default and that's why Republican leaders like McConnell and Boehner are saying we do need to raise the debt ceiling."

The deadline to raise the debt ceiling is Aug., 2.

Posted to the web: Jennifer Walch