(Image Source: ZeeNews)
 

BY: ALLIE SPILLYARDS


Still no deal.
It’s been a week since President Obama warned congressional leaders they’d meet daily until compromise was reached.

OBAMA: “It’s not going to get easier. It’s going to get harder. So, we might as well do it now. Pull off the bandaid. Eat our peas.”

With just 4 days to go until the White House’s July 22nd deadline -- USA Today has the latest.

“Republicans want to reduce the debt with budget cuts only, and at least by the same amount as any increase in the debt ceiling -- about $2.4 trillion to get through 2012... Obama and Democrats say that approach would gut important programs like Medicare, and place all the burden for debt reduction on the middle class."

The House Republican majority seems unlikely to give into Obama’s requested 4 trillion dollar “big deal,” and Director of Management and Budget Jack Lew says a small deal might be better than none at all.

LEW: “I think we've said for some time now, as have most, that we need to do on the order of $4 trillion of deficit reduction over the next 10, 12 years. We would like to get that done now. (FLASH) if there's not a similar willingness, we should do as much as we can now. I think that the markets will understand moving as far as we can. What would be hard to explain is doing nothing.”

And if the Democrats don’t give, can the GOP unite under one vote? ABC’s Johnathon Karl explains one roadblock to a panel on CNN’s Reliable Sources.

“Right before one of these big White House meetings, you had the ultimate absurdity. You had Eric Cantor holding a press conference off camera, pen and pad. And then a half an hour later you had John Boehner holding a press conference, both of them by themselves without each other. And then they went exactly from there to the White House. So who is your voice of the Republican party?”

And then there’s the big question-- what happens if a deal isn’t reached? What happens if the US defaults on its debt? CNN’s Lisa Desjardins explains.

“Government could pay social security, medicare, and unemployment benefits, but there’d be no money to pay the troops. Or government could pay the troops but then couldn’t afford unemployment benefits. And in both cases, there’d be no money for security or any other federal workers.”

But politicians continue to insist a default won’t happen. Senate Republican Whip John Kyl tells ABC’s This Week....

“The country will not default. Whether or not there are savings achieved in the process remains open to question. If all else fails, if our efforts to adopt legislation to cut the deficit, put a straight jacket on it and balance the budget, so-called cut, cap and balance, i think that passes the house. If that doesn't pass the senate, if there's no other way to reach some kind of savings agreement, at the end of the day, republican leaders made it clear we will not be the ones who put the government into default."

Others say-- the US may not have to wait for the August 2nd deadline to face repercussions. According to the Wall Street Journal...

“Rating firms Standard & Poor's and Moody's Investors Service warned last week that they could take the unprecedented step of downgrading the U.S.'s credit rating if the debt ceiling isn't raised soon, with S&P saying such a move could come later in July if it looks like no progress is being made.”
 

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Transcript by Newsy.