From Newsmax:

Politicians will likely cut a deal and raise the government's $14.3 trillion debt ceiling soon, but will need to tackle the underlying problem of narrowing gaping deficits in the long term, says Mohamed El-Erian, co-head of Pimco, the world's largest bond fund.

The White House has said that if Congress doesn't lift its debt limit by Aug. 2, it will default. And credit ratings agencies have said the country could lose its coveted triple-A rating.

"There are two distinct warnings here. Not one but two. The first warning, if we don't get our act together in time, we will be downgraded. The second warning is even if we get our act together ahead of the debt ceiling but it doesn't involve meaningful, fiscal consolidation, we will…”

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More on the debt crisis:

Ron Paul: U.S. debt trap is "going to end very badly"

Jim Rogers: A U.S. default is certain

Obama claims there is no money to pay Social Security next month