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With a fast approaching deadline. President Obama held his 7th prime time televised address last night pushing for Congressional Leaders to reach a deal that would allow the government to continue borrowing money and pay its debts.
If Congress fails to raise the $14.3 trillion debt limit by August 2nd Americans could face rising interest rates and a decline in the value of the dollar. 18th District Congressman Bob Gibbs said it will ultimately cause individual mortgages, car loans and student loans to become more expensive.
"I think if we can get our fiscal house in order, and also common sense regulatory reform along with some common sense tax reforms I think that would provide certainty and restorer private sector and confidence," said Gibbs. "You'd see this economy take off but doing the same old, same old business as usual in D.C. can't continue."
Monday Democratic and Republican leaders each presented new proposals that were quickly rejected. Both plans -- one by Democrat and Senate Majority Leader Harry Reid and the other by Ohio Republican and House Speaker John Boehner - lean towards a raise in the debt ceiling through 2012. Obama supported Reid's plan but felt it was unlikely to get passed in the house triggering a response from Congressman Gibbs.
"The plan that Senator Reid is proposing essentially sends the President a blank check of $2.4 trillion and his cuts, I don't
even think they are real," said Gibbs. "They are kind of a gimmick, there not real cuts, and we need to start having some cuts now and not 6-10 years down the road."
Keep to NBC Nightly News for more on the debt limit issue.