The complexity of passing legislation through Congress with an intransigent Republican Party is something we should be worried about here in Canada, too. There is the prospect that the federal government, Canada's largest province, and Canada's largest city could all be governed by ideological conservatives.
At the end of the day there is nothing sacred about that AAA stamp on Washington IOUs. Since the popular press has done a good job in linking the Aug. 2 deadline with the future of the U.S. credit rating, many believe that getting a debt authorization increase by this date will protect it. That would be naïve.