(RALEIGH) -- A compromise debt limit deal that avoids a market-rattling default in eight days while cutting trillions in spending remains elusive. NC State Unversity economist Dr. Mike Walden says a balanced budget proposal from a Republican bill wouldn't help immediately.

Meanwhile, House Speaker John Boehnerplans to meet with his chamber's Republicans today and may unveil legislation, while Senate Majority Leader Harry Reid of Nevada says he's crafting a bill too. Boehner says some Republican colleagues will have to make sacrifices to resolve the debt crisis. Dr. Walden says a balanced budget proposal from a House Republicans may be a good idea.

"I think there is a need for loopholes in time of war, or perhaps a time of economic distress, where the federal government - as a last resort - could allow some deficit spending."

A person familiar with Boehner's remarks said the speaker told lawmakers that both the House and Senate are ready to embrace significant spending reductions.

As work goes on in the effort to reach a deficit cutting compromise and raise the government's borrowing limit ahead of an Aug. 2 deadline. Dr. Walden says a balanced budget proposal from a House Republicans is will certainly help in the long run. House Republicans and Senate Democrats are readying rival emergency plans in hopes of reassuring world financial markets that the U.S. will not default on its debt.