Countries do not go bankrupt; at least this is the accepted theory these days. But it just might not be true anymore. Greece is a mere step away from insolvency. Portugal, too, is not far from it and perhaps Spain as well. Yet can we even begin to think that the United States, the world's largest economy (twice the size of China), will follow in their footsteps? Some economists today, albeit not many, believe that this nightmare may actually come about. The statistics are self explanatory: in the U.S., both internal and external debt have reached unprecedented dimensions and they continue to expand - and there is no foreseeable firm plan of action in sight to alter this trend. While the U.S. may have an advantage over other countries in that it can print dollars, which remain the main international currency, what will happen to the dollar when U.S. creditors come to the conclusion that the country is not actually capable of meeting its obligations? In addition, the printing presses may have to stop, either as a result of legal restraint or else because these dollars, or as some are calling it "Monopoly money," will simply cease to possess any actual economic value. In the European Union there is a clear limit to the budgetary debt and deficit which the member countries are at liberty to take upon themselves. In the U.S., however, Congress set the permitted national maximum rate currently at 14.3 billion dollars, less than the actual debt. If this bar is not raised by August, the U.S. will indeed be "insolvent." The decision to raise this bar remains in Congress' hands. It is a fact that the Republicans rule the House of Representatives. Their economic belief is clear cut: trim the deficits and do not further perforate the already punctured package. In addition, taxes should be lowered in order to encourage investment and growth. The U.S. government believes that the battle is still not lost regarding this matter; perhaps the Republicans will acquiesce at the last moment in return for the government overlooking other matters. Yet, in any case, the situation continues to ride close to the edge. The economic debate stands at the core of U.S. political rivalries. Those that support budgetary expansion and the Government's increased involvement in economic matters - mainly, but not only, the Democrats - claim that the channeling of large sums of money toward the American market will prevent another economic crisis which may prove worse than the one before. They argue that this is the only way to generate new jobs, upgrade the U.S. internal and export markets and, as a result of all this, tax collection will also increase (taxes which need to be raised in any case). In their minds, this is how the economy will recuperate. Those opposing this method - mainly, but again not only, Republicans - hold the opinion that this type of policy is the "mother of all sin." Huge public budgets are the prime perpetrators of the current crisis. They are against initiatives to expand the budget, including Obama's vastly unpopular medical reform bill that will cost the American tax-payer trillions in the coming years. "Cut back" is their call and it appears that this slogan is largely accepted by the citizens of America. Unemployment remains at the center in this debate. It is a "take no prisoners" situation for both parties. Democrats and Republicans alike realize that in all probability, this is what will determine the next presidential election. Fourteen million unemployed were registered in May, representing 9.1% of the work force. No new jobs have been created in any of the market sectors; a decline on the housing front has reappeared; and statistics indicate that the growth spurt of the last month will come to a halt. American history shows that ever since the 1930's, no president succeeded in being reelected with an unemployment rate above 7.1%. Obama's problem is that in the short term he has hardly any means with which to change the market's negative trends, neither politically nor economically. The Federal Bank cannot lower the interest rate any further as it has already hit-bottom. There are those, mainly on the left, who also blame Obama for not demonstrating proper leadership and for not making use of the tactics available to him. The Republicans do not have a miracle plan either though for the time being, the obligation of proof lies in the hands of the government and the person at its head. In the words of liberal commentator Richard Cohen for the Washington Post, "it is doubtful that his Mid-East Policy will cause President Obama to loose the elections, yet the economy is an entirely different matter."