Obama adviser: Country in 'danger zone' on economy

[June 30, 2011]  WASHINGTON (AP) -- A senior White House adviser says Democrats and Republicans must "get out of their comfort zone" to avert a government default.

David Plouffe (pluff) acknowledges on NBC's "Today" show that President Barack Obama essentially is responsible for the economy. But he says the deep recession wasn't just "a run of bad luck," but rather the result of bad government policies by the preceding Republican administration.

He says no deficit reduction deal is likely as long as tax increases are ruled out. Asked if the Aug. 2 deadline is real, Plouffe says, "There's very little debate that that's going to change. We're in a danger zone now."

Plouffe says there can be no deficit reduction deal without some "balance," meaning tax increases must be considered as well as spending cuts.

[Associated Press]

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