Obama: U.S. could face crisis over debt ceiling (by Sarah Turner)

SYDNEY (MarketWatch) -- U.S. President Barack Obama said Sunday that the country could face another financial crisis if the White House and Republicans can't agree on raising the U.S. legal debt ceiling, according to reports. The U.S. is set to hit its $14.294 trillion limit on Monday, but due to accounting maneuvers, it has until early August to head off the chance of a default. The White House and the Republicans have been at loggerheads, with Republicans reportedly calling for major spending cuts from the Federal budget before a deal can be reached. Republican House Speaker John Boehner said Sunday that he believes an increase in the debt ceiling will be necessary but reiterated he's committed to cuts in spending and changes in the budget, the reports said.