Obama warns against economic crisis

US President Barack Obama has warned of a new economic crisis if Republicans in Congress fail to raise the US sovereign debt ceiling.

Obama said, "Markets could go haywire, interest rates would spike for anybody who borrows money, every home-owner with a mortgage, every student with a student loan and every business owner who wants to grow and hire. It would be a self-inflicted wound on the economy. Republicans in Congress have two choices here: they can act responsibly, and pay America’s bills, or they can act irresponsibly and put America through another economic crisis. But they will not collect a ransom in exchange for not crashing the American economy."

The United States is expected to reach its current debt limit of 16.4 trillion dollars by the end of February. Obama wants Congress to raise the debt ceiling. His warning comes amid reports that Republicans in the House of Representatives are considering letting the US government go into default. They want Obama to first agree to deep government spending cuts.

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