Debt Ceiling: Obama Wants Common Ground by Week’s End to Prevent Govt Shutdown

With the deadline to raise the debt ceiling edging closer President Barack Obama is demanding that there be common ground between budget negotiators by week's end so as to prevent the looming government shutdown.

A decision must be made before the Aug. 2 cutoff date or the U.S. government will go into default.

The U.S. has hit its $14.3 trillion debt ceiling in May. The debt ceiling needs to be raised by $2.4 trillion to last to the end of 2012.

It is reported that Obama is getting frustrated and has warned Republicans to not call my bluff before walking out of a budget negotiation session.

House Majority leader Eric Cantor told the New York Daily News that Obama became agitated before the warning Cantor who had said he would consider a short-term debt-limit hike.

But Obama has said that such a hike isn't the resolution to the problem the nation is now facing.

After session, Cantor told reporters that the meeting ended with the President abruptly walking out of the meeting, Cantor told reporters after the session. I know why he lost his temper. He's frustrated. We're all frustrated.

On Wednesday, Moody's Investors Service said it will review the government's credit rating, CBS reported. The CBS article also stated that Moody's noted there is a small but rising risk that the government will default on its debt.

Lower ratings would lead to some consequences that could include higher rates for mortgages, car loans and other debts.

On Wednesday, the Obama and top lawmakers spent almost two hours bargaining on spending cuts before he abruptly ended the session when Cantor urged the president to accept a short, months-long increase in debt. This short-term increase was proposed instead of one that would last until next year's presidential election.

But Obama said: Enough is enough. ... I'll see you all tomorrow, several officials told CBS.