Paul Krugman says the people at S&P have no credibility, but the deficit problem is not as bad as we think and could easily be fixed if the extremists in the GOP were politically defeated and marginalized. I think it is important to read Krugman if for no other reason than to understand how completely the tradition, New Deal, Progressive left views our economy. They simply refuse to believe that the era of Big Government is over and that the welfare state is unsustainable.

Robert J. Samuelson, who does believe that the welfare state as it is currently constituted is unsustainable, says the liberals were the true winners in the debt ceiling deal as the final plan leaves Social Security, Medicare, Medicaid and other entitlement programs untouched while focusing cuts on the Pentagon. Samuelson's analysis is correct, of course. Politicians of both parties, except for some of the really committed Tea Party folks, are unwilling to touch the entitlement programs. As a consequence, if the are also unwilling to raise taxes (or, more accurately, if neither side can come up with enough votes to either cut entitlements or raise taxes) then the only other part of the budget where they can find big enough savings to make a dent in deficit spending is the Defense Department.

Ross Douthat points out that both Republicans and Democrats are looking for that next great realignment election that will give their side the power to make the changes they want. He believes as a nation we cannot afford to wait for such a realignment. Alas, I believe that we can only get out of the fix we are in with such a realignment, or an event of such enormous consequence that politicians from both sides cannot be seen to oppose the measures deemed necessary to deal with the crisis.

Niall Ferguson has some thoughts on how the Chinese are reacting to our debt crisis. I suspect that while they are concerned about their own exposure, they are also quite pleased to see more evidence of America in decline.

Michael Barone has some thoughts on why the Great Recession isn't pushing the American people to the left.

Nouriel Roubini thinks there is nothing left in the toolbox to prevent a double-dip recession.

Walter Russell Mead writes about the recent racially motivated violence coming from young Blacks aimed at whites. He fears we may be sitting on a tinderbox that could result in an explosion of violence.

As the debt crisis worsens...oh,wait a minute, you thought the debt crisis was over? Well, it isn't over for us, of course, but the crisis I am referring to is happening in Europe.

Meanwhile, as the aforementioned debt crisis worsens, numerous commentators are turning their attention to the looming defense cuts that will automatically kick in if the debt ceiling bill is not superseded somewhere down the road (it will be, by the way).

Peter Brookes says these proposed cuts risk disaster, while Arthur Herman compares them to the weakened state of the U.S. military in the 1930s.

On the other hand, Fareed Zakaria believes the cuts are long overdue.

In my estimation, these cuts are inevitable. Since we will not see a large enough political coalition for actual cuts in entitlement programs, nor will we see a coalition powerful enough to raise taxes significantly, the only other option to ameliorate the deficit spending situation is to cut defense. This is the way the other declining empires of the past did it, and this is how we will do it. Of course, those empires got into big trouble by following that course, and so will we.

THOUGHTS ON THE DEBT CEILING BILL

Now that the debt-ceiling bill has passed the U.S. House it goes on to the Senate for a vote later today. Most of the talking heads seem to think it will pass and go on for the President to sign, thus allowing the Secretary of the Treasury to immediately begin borrowing even more billions of dollars to continue operating our federal government.

While it is a hopeful sign when one examines the overall trend of the decline of the Socialist Left in both Europe and America, I still am not convinced that "the people" are really determined to end the era of big government. Crucially, this plan does not start a real debate about entitlement reform. In fact, when push comes to shove, the bill looks to cutting the Defense Department as a way to make the balance sheets look better.

As I have written many times, the declining, overextended empires of the past always shredded their defense expenditures in a last-ditch effort to remain solvent, since the political pain of tackling domestic bribery programs was too great to keep their leaders comfortable on their thrones or in their parliamentary seats. Until I see evidence that "the people" are willing to withstand real cuts to domestic entitlement programs, I will withhold judgment.