http://www.nytimes.com/2011/08/01/opinion/the-president-surrenders-on-debt-ceiling.html?_r=1
A deal to raise the federal debt ceiling is in the works. If it goes through, many commentators will declare that disaster was avoided. But they will be wrong.
For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make America’s long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status. (click the link above to read the rest of the article)
___________________________________
I agree with Krugman - and I have to say, I saw this coming last fall. I guess the frighties long-wished for dream along with their worst nightmare is coming true - they are now living in a state of right-wing extremist dictators.