The Observer (Sunday Guardian): Tea Party intransigence takes America to the brink

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Barack Obama has not slept in the last week, worried about the impending debt crisis deadline, according to a White House aide. He will not be getting much sleep over the next 48 hours either, as the standoff between the Republicans and Democrats – the biggest ideological collision between the parties for decades – enters its final phase.

With only two days left to the deadline that could result in the US defaulting on its borrowing for the first time, there is still no sign of a deal. The Republican-controlled House of Representatives passed a stopgap bill by 218-210 on Friday evening. Two hours later, the Democratic-controlled Senate voted to kill it by 59-41. The Senate, keen to have a deal in place before the markets open on Monday, with the potential for huge falls in share prices, is proposing a bill of its own scheduled to go to a vote on Sunday.

The Democratic leader in the Senate, Harry Reid, speaking late on Friday about his new bill, said: "This is likely our last chance to save this nation from default."

Late last night there was an attempt to strike a compromise. Senate Republican leader Mitch McConnell and House Speaker John Boehner said that they were in serious talks with the president and were confident that the stalemate could be broken.

full: http://www.guardian.co.uk/world/2011/jul/31/us-debt-congress-tea-party