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Obama sets goal of $4T in deficit cuts

President Barack Obama yesterday set a goal of cutting the federal budget deficit by $4 trillion, plunging into the debate on the nation’s fiscal woes after accusations he has failed to lead on the issue.

President Barack Obama yesterday set a goal of cutting the federal budget deficit by $4 trillion, plunging into the debate on the nation’s fiscal woes after accusations he has failed to lead on the issue.

Obama, facing a 2012 re-election vote in which the nation’s debt and deficit are major worries for Americans, promised in a speech in Washington to put the country on a gradually improving fiscal path.

He set a time frame of 12 years or less to reach the goal of $4 trillion in deficit reduction and called for talks with Democratic and Republican lawmakers to hammer out a detailed blueprint.
Obama warned that steadily rising debt could cost jobs and harm the economy and force the country to borrow more from other countries such as China.

“If our creditors start worrying that we may be unable to pay back our debts, it could drive up interest rates for everyone who borrows money — making it harder for businesses to expand and hire, or families to take out a mortgage,” he said. But he added: “We can solve this problem.”

With the U.S. deficit expected to hit $1.65 trillion this year, Obama also proposed triggers that would force automatic, across-the-board cuts in spending if budget targets are not met by 2014.

 
 
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