Barack Obama in debt crisis clash with Republicans

The US debt crisis deepened today as President Barack Obama and his Republican rival traded blows over the deadlocked talks which could see the country unable to pay its bills.

The President made a live address to the nation in which he said a "dangerous stalemate" was putting jobs and incomes at risk. Computers at Congress were jammed after he asked members of the public to send emails to senior Republicans protesting at them blocking his plan to raise the £8.7 trillion debt ceiling.

However, his appeal was rebuffed by John Boehner, who leads the Republican-dominated House of Representatives. He accused Mr Obama of demanding "a blank cheque" and added: "This is not going to happen."

If a deal is not struck by August 2 the government will run out of ready cash. That could cost the US its triple-A rating for the first time and cause a new global crisis.