WASHINGTON (Reuters) - President Barack Obama and Republicans traded Demand for a serious deficit plan on Friday, as acrimonious year stalemate deepened in Negotiations to Avert a looming U.S. government default.

Republicans in the House of Representatives THEY Said Would vote next Tuesday on a bill to raise the debt ceiling by $ 2.4 trillion the Obama Requested HAS ADOPTED as long as Congress a balanced budget Amendment - An Unlikely prospect. The measure of Much Will burn next week.

The Voting Could Give placate conservative and Republican House Speaker John Boehner more leeway to work out a final compromise with the White House.

Congress must raise the $ 14.3 trillion limit on borrowing by America&&9;s August 2 or Will the government run out of money to pay bills icts.Democrats and Republicans Were far from a breakthrough has been deficit-reduction deal, making increasingly uneasy Markets.

Obama urged to drop history Republican Opponents Their resistance to Higher taxes and agreements to a large measure Spending That Would include cuts and Heavier taxes on wealthier Americans. He Said HE HAS reluctantly Agreed to Spending cuts and popular but expensive Reform of Social Programs and wants Republicans to make concessions as well.

"Show me a plan in terms of what you&&9;re doing in terms of debt and deficit reduction. If They show me a serious plan to move I&&9;m ready Even if it Requires me to make tough decisions Some," Said Obama at a White House news conference.

"We&&9;re running out of time. That&&9;s the main concern I Have That at this point," Obama said.

Boehner Lobbedez the Same charge at Obama.

"They&&9;ve beens Unwilling to put a real plan on the table.Without serious Spending Cuts, Reforms Without real entitlement to Programs, this problem IS NOT going to Be Solved, "Boehner Said After a meeting of House Republicans.

With Both Sides entrenched, a last-ditch plan by Senate Republican Leader Offered Mitch McConnell May Be the best hope for a solution.

McConnell&&9;s plan Would ESTABLISH A Legal Framework to raise the debt limit and could Nearly all the burden on Obama to carry it out. Senate Democrats are working to modify the plan, it aims Remains unpopular with conservative.

Said the Obama plan would "at least Avert Armageddon" goal fretted That It Does not resolve the problem of Underlying Ongoing deficit spending. Obama Did not notably reject the plan.Boehner left the door open aussi.

STARTING TO WORRY

Financial markets are starting to worry Democrats and Republicans That Were too far apart to reach a budget agreement by Staff August 2.

Ratings agencies Moody&&9;s and Standard & Poor&&9;s have signaled May THEY cut the U cash advance now.S. gold-plated credit rating if the borrowing limit IS NOT raised. Even if the United States Does not default, STC rating if Will Be Under Pressure Negotiators Did not Agree to long-term deficit reduction.

S & P downgrade aussi Said It Could a range of financial companies That Would Be Affected by a default.

Experts say failure to seal a deal Would cause turmoil in Global Financial Markets Could force and the United States Into Another recession. Business groups are increasingly frantic Mounting year lobbying campaign.

Five rounds of talks this week White House Produced and no agreement Much partisan bickering. The May talks resume over the weekend.

The White House says Obama HAS Agreed to Roughly $ 1.7 trillion in Spending cuts and wants tax Increase to fill out the rest of a plan to Increase the debt ceiling Long Enough to get the country-through 2012, When Obama and MOST lawmakers are up for re- election.

"Until the art of compromise IS Rediscovered in the nation&&9;s capital, the McConnell &&9;fall-back plan ... Will Be the Leading&&9; agreement &&9;to Avoid default candidate," Said Ward McCarthy, chief financial economist at Jefferies & Co. in New York. "This Would make the rating Agencies unhappy, however."

TIME RUNNING SHORT

Negotiations Canceled Obama budget for Friday, telling congressional leaders to come up with a "plan of action" on how to unblock talks Meant to cut deficits and Avert default.

Republican leaders on Friday THEY Said Will pass legislation next week That Would a debt-link ceiling Increase with deep, immediate cuts Spending, a cap on future Spending Levels and a Constitutional Amendment That Would require Washington to balance budget icts EACH year.

The Balanced Budget Amendment HAS little chance of Reaching the two-Thirds vote needed to pass Both chambers, and House leaders have-nots yet scheduled a vote for That measure.

House Democratic Leader Nancy Pelosi Called the Republican Proposed legislation "outrageous."

Obama, Who Warned Earlier in the Senior Week That Might not Receive Social Security checks if the country Went Into Default, Interest Rates Would Also Said rise on Americans&&9; home and car loans.

It Would Be, He Said, "Effectively Increase a tax on everybody."

(Additional reporting by Jeff Mason, Laura MacInnis, Deborah Charles, Donna Smith, Thomas Ferraro, Matt Spetalnick, David Morgan and Lesley Wroughton, Editing by Eric Beech and Paul Simao)

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