While one should never underestimate the rampant stupidity and batshitloonitarianism of the psychiatric wing of the Republican Party (which seems to be its dominant wing), I think Bill Mitchell’s take on the whole fiasco is dead on target:
With regard to the debt ceiling it is clear that there will be a “last minute” compromise and the last several weeks will have just served to demonstrate the appalling self-serving nature of American politics driven by deep ideological disregard for the underprivileged (including the unemployed).
It really is remarkable how there has been no discussion whatsoever of what trillions of dollars of cuts would mean for people’s day to day lives. Because that’s why budget deficits and reduction matter–it’s not an arbitrary number to be reached for its own sake.
Mitchell also has a good, albeit somewhat technical, description of how governments raise money through bond sales.