WASHINGTON (Reuters) - Here is the situation on Wednesday as lawmakers try to close in on a deal for Congress to raise the U.S. government's $14.3 trillion borrowing limit by an August 2 deadline and avoid a debt default:
* House of Representatives Speaker John Boehner, the top Republican in Congress, offers a revised deficit reduction proposal to meet conservatives' demands for more spending cuts. The new plan provides a $900 billion debt limit hike and seeks $917 billion in spending cuts over 10 years. It calls on Congress to produce an additional $1.8 trillion in savings.
* Earlier, Boehner tells Republicans in a closed-door meeting to drop their opposition to his plan and "get your ass in line" behind what he has described as the best chance to win the deep spending cuts.
* A separate plan crafted by Senate Majority Leader Harry Reid, a Democrat, is being tweaked after a budget analysis found it would cut $2.2 trillion from deficits, about $500 billion less than claimed. Democrats want at least a $2.4 trillion debt limit hike to provide enough borrowing authority through the November 2012 elections. They are trying to match that with an equal amount of deficit cuts, a key Republican demand.
* The Boehner plan will not pass the Democratic-led Senate, Senate Democrats say.
* Amid the brinkmanship, Reid, Senate Republican Leader Mitch McConnell and Boehner are discussing how to break the impasse, lawmakers say.
* The U.S. Treasury Department says the government will no longer be able to borrow money on August 2 and there is no way to guarantee it will be able to pay all of its bills without a debt limit increase.
* White House spokesman Jay Carney says time is running out to reach a compromise on the debt limit and Republicans and Democrats must come together now on an agreement.
* Wall Street suffers its worst day in eight weeks and major global stock markets fall sharply on concerns about the impasse in Washington, while the U.S. dollar rebounds after a sell-off this week. Gold falls after earlier hitting record highs for the sixth time in two weeks.
* Standard and Poor's President Daven Sharma tells a U.S. congressional panel the ratings agency does not think the United States will default on its debt. But he says it must have a credible plan to reduce its debt burdens if it wants to keep its top-notch credit rating.
* Bank of Japan board member Hidetoshi Kamezaki warns that the impasse in U.S. debt talks is a having considerable impact on foreign exchange markets and a U.S. default could have serious effects on Japan's financial system.
(Reporting by Donna Smith; Editing by John O'Callaghan)
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