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US Senate rejects House debt measure

US Senate rejects House debt measure

30 July 2011 04:59 (UTC +04:00)

Democrats and several Republicans killed the GOP measure by a 59-41 vote on Friday night local time, just minutes after it arrived from the House.

Democrats opposed the measure because it would require another painful debt-limit debate early next year.

The move continues a standoff over the debt limit but could set the table for negotiations this weekend on compromise legislation that could pass the Democratic Senate and the GOP-controlled House before an August 2 deadline to prevent a potentially disastrous default on US obligations like interest payments and Social Security cheques.

The measure would have immediately lifted the Government’s borrowing cap by $US900 billion ($820 billion).
It barely squeaked through the House.

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