Economics Report.This week President Obamasigned a bill raisingthe nation's borrowing limit.That debt deal, however,failed to keep stock marketsfrom dropping.Prices fell sharplyon growing economic concernsabout the United Statesand the world.The legislation followedmonths of arguing that onlyadded to those concerns.Congress sent the billto the president to signinto law on Tuesday.That was the last daythe government said it hadenough money to makeall of its payments.The Budget Control Act of 2011lets the government seekfinancing to pay its billsuntil twenty-thirteen.Congress agreed to liftthe debt ceilingby over two trillion dollars,but also to make spending cuts.President Obama saidit was a starting point.BARACK OBAMA: "This compromiseguarantees more than two trillion dollarsin deficit reduction.It's an important first stepto ensuring that as a nation,we live within our means.Yet it also allows us to keepmaking key investments in thingslike education and researchthat lead to new jobs.And assures that we're not cuttingtoo abruptly while the economyis still fragile."Richard Gordon workedwith the International Monetary Fundfor nearly ten years.He says there is a risk in cuttingthe federal budget too muchwhen unemployment is high.RICHARD GORDON: "If the federal governmentdoes not put money into the economy,the economy will stall.And that will resultin another recession,and that cannot help anybody."The national debt is more thanfourteen trillion dollars.At the end of last year,private investors in the United Statesheld the largest share-- thirty-six percent ofthat government debt.China was the single largestforeign holder of Treasury securities,followed by Japan and Britain.On Wednesday, China'sDagong credit rating agency downgraded American debt.It said the budget deal did nothingto improve the United States' abilityto pay its debts.Still, the government hashad no trouble finding investors,and its borrowing costs have even fallen.The Budget Control Act callsfor almost one trillion dollarsin spending cuts over ten years.A committee of six Democratsand six Republicans will haveto identify another trillionand a half dollars in deficit reductions.What happens if the committeecannot agree?Then an enforcement measure knownas a trigger would go into effect.It would cut money from domesticand defense programs,but not in popular social programsfor retirees and the poor.The budget deal containedno tax increases,but that issue has not gone away.Richard Gordon -- now a law professorat Case Western Universityin Cleveland, Ohio -- saysthe deal leaves a big question.RICHARD GORDON: "What is goingto be the economic policyof the federal governmentin the next two years?"And that's the VOA Special EnglishEconomics Report.