Obama warns of 'catastrophic consequences' if Congress does not raise debt ceiling

Washington, Jan. 6 (ANI): President Barack Obama has touted that the fiscal cliff compromise is 'one more step in the broader effort to grow the economy and shrink deficits, but warned that another "manufactured crisis" over the debt ceiling could wreak havoc on the economy.

Continuing his effort to frame the looming fight over the nation's debt limit, Obama made clear that he will not compromise over whether or not Congress should pay the tab for a bill they've already racked up.

He said that if Congress refuses to give the United States the ability to pay its bills on time, the consequences for the entire global economy could be 'catastrophic', ABC News reports.

He said that the last time Congress threatened this course of action, the country's entire economy suffered for it.

Speaking from Hawaii, where Obama is vacationing with his family, he cautioned that another "messy brinkmanship" in Congress would make business owners and consumers less confident.

By the end of February, lawmakers must deal with the need to raise the nation's debt ceiling and tackle the delayed across-the-board sequester cuts, the report said.

Obama vowed to do more to reduce the deficit, but continued to insist that any future spending cuts must be balanced with tax reforms, the report added. (ANI)

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