US politicians have been locked into negotiations about reducing the country’s discrepancy, with the two sides unable to agree a tax and spending package as the possibility of a debt default becomes visible. So what are the fair rules in such a situation? The risk could not be higher. As the clock indicates and time rally’s towards 2 August, the possibility of the US defaulting on its debt grows.
To steer clear of the government is running out of money on that day and the economic upheaval some forecasters have predicted could happen as a end result the US must raise its debt limit above its current $14.3trillian so it can borrow more.
Frequently, raising the debt top limit is a regulation, although with some political pomposity. But this time, the Republicans, who control the House of Representatives, have been adamant that there should be spending cuts to address the ballooning deficit, in exchange for increasing the debt limit.
All eyes have been on the White House, where President Obama and senior Democrats and Republicans have been unable to find common ground during a week of discussions. There have been reports of walkouts from both sides.
According to forecasters the fair rules are following
- Keeping a list of issues you are willing to negotiate, and ranked in order of importance, is a fundamental requirement .Having this list helps incalculably when you sense the talks moving towards deadlock.
- In planning your strategy, you carefully determine what and when you’re going to communicate to your corresponding person, If you reveal your “red lines” what you won’t shunt on is early, you’re showing them .In the debt talks, Republicans have said from the outset that any deal that includes new tax revenue will not work.
- Both sides in Washington have been lay blame on knowingly growing the stakes in order to reinforce their hand , Obama by saying he can’t guarantee social security cheques will be paid next month, and some Republicans who say they won’t vote to raise the debt top limit under any conditions.
- Both sides in the debt talks are unfastened groupings of warring tribes, Therefore there is a dance between internal politics and external discussions. Obama has also felt the heat from liberals in his party for saying he will consider cutting benefits like Medicare, which is paid to the mature.
- Negotiation is always a momentum game and that requires action-forcing events, Like deadlines, things to keep the thing moving forward. Without accomplishment forcing events, people are faced with hard choices. The symmetry is to do nothing.