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.