Obama warns of recession if the debt ceiling is not raised (AFP)

WASHINGTON (AFP)-President Barack Obama warned Wednesday that if Congress fails to lift the debt ceiling U.S. risks sparking a new recession in the world's largest economy.

Not raising the debt ceiling of $ 14.29 billion would lead to "a new spiral in a second recession or worse," Obama said as he answered questions on short messaging service Twitter during a "Town Hall" streaming live from the White House.

The ceiling debt "is something that we should not be toying with," Obama warned, saying that if the limit is not "Treasure will be walked out of money".

"It will not be able to pay the Bills that are due and potentially the world's capital markets could decide, you know what, the full faith and credit of the United States doesn't mean anything.

"So our credit could be downgraded, interest rates could go up drastically, and could lead to a new spiral in a second recession or worse."

The Republican enemies of previous Obama denounced his handling of the debt woes of Washington ran out of money on the eve of the White House talks that the President has called leaders of Congress seeking a deal to avert a default first of August.

Republican Senate Minority Leader Mitch McConnell said that negotiations on a package deal to cut the deficit and increase the limit of U.S. debt will Obama to do "something big" try to get the fiscal house in order in the country.

"Until now, the President's proposals were inadequate and, frankly, indefensible," McConnell said in a speech on the House of the Senate, taking aim at Obama's call to raise taxes on the very wealthiest us earners.

But Obama hit back in say Twitter town hall meeting: "the Congress has the responsibility to ensure that we pay our bills. We always have paid in the past. The idea that the United States is going to default on its debt is simply irresponsible. "

"And my expectation is that over the next week for two weeks, that the Congress, working with the White House comes up with an agreement that resolves our deficit, solves the problems of debt and makes sure that both protected our full faith and credit".

The United States ran its debt ceiling 14.29 billion dollars on 16 may, but since then has used adaptations of spending and accounting, as well as tax revenues higher than expected, to continue to operate without impact on the obligations of the Government.

But since 2 August, the Government must start to be payments-bondholders, public servants, retirees or contractors of Government-if lawmakers not to raise the ceiling.

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