CNN news 2011-07-19 加文本

cnn news 2011-07-19

The clock is ticking and tensions are soaring, and if you want an idea of just heated things are over the debt crisis, listen to this. President Obama storms out of yesterday's meeting vowing that he will veto any extension of the debt ceiling that's only short term. Sources say the frustrated president said to the House Majority Leader Eric Cantor, quote, "This could bring down my presidency." 

Today top congressional Democrats and Republicans returned to the White House for a fifth straight day of talks. But the August 2nd deadline is looming and pessimism is growing. In fact, a major rating agency says it will review the nation' sterling bond rating for a possible downgrade. 

We're covering all the angles of this all-important debt talk story. Dan Lothian at the White House with reaction to the extraordinary ratcheting up of tensions. Ali Velshi giving us the bottom line on the economics. Why should you care that U.S. bonds could face a brutal reality check. 

Ali, you know, let's start with you. A downgrade would be kind of like seeing your personal credit score just take a huge hit, right? 

Right. So we already have a debt problem. We already pay too much interest on too much debt. Downgrade would mean that the cost of borrowing which the U.S. has to do very regularly increases its borrowing would cost us more. 

So it will actually set us back. So, you know, most thinking people think we need to avoid this debt limit not being increased. 

Here are your three consequences, Kyra. First of all, if the debt limit is not increased, debt costs go up. Number two, it could freeze international borrowing and lending because the U.S. is the safest bet in the world to lend money to. If the safest bet all of a sudden becomes less safe it turns the whole system upside down. 

Number three, it just creates a lack of certainty and fear in the stock market, so a lot of people who their investments in 401(k)s and IRAs start to suffer and there becomes this flight to quality. You've heard this said before. People take their money out of the market, causing markets to drop. They put their money into cash or gold. You're seeing gold increase and more records being set over the last few days. 

So at the moment, I'll tell you. Stocks are set to open higher this morning. That's because the smart money is that these guys will work it out, but it's 20 days away, Kyra. That's dog years as you know. Once we get close if this stuff keeps happening you'll start to see markets dropping, you'll start to see the dollar dropping, you'll start to see a lot of fear. 

Checking stories across country. In California, the feds deal a critical blow to the Mexican mafia's operation in Orange County. Ninety-nine alleged gang members rounded up and charged with crimes, including murder, extortion and drug trafficking. Operation Black Flag also seized weapons, everything from handguns to assault rifles.

Take a look at this group of pioneering Afghan women. They are in San Antonio, Texas. And they are trying to become some of the first female pilots in the Afghan air force. They're going to spend six to eight months to study English before they learn how to fly helicopters.