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Could the US default on its debt?

5 July 2011 Last updated at 10:16 BST

US Senators return to work early on Tuesday to address their country's looming debt limit.

The lawmakers have cut short a week-long Independence Day break as President Obama wants them to raise the country's debt cap to prevent the government from running out of money in four weeks time.

However, the Republicans and Democrats do not agree over what conditions to attach.

Caroline Hepker reports.