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There is nothing like a deadline to focus your mind wonderfully.

Whether it’s a term paper,  job application or saving the U.S. Economy, a looming deadline will create urgent activity.

That’s what happening in Washington at the moment as an August 2nd deadline approaches. What is at stake?

How about  a global economic panic?

The deadline in question refers to negotiations between Democrats and Republicans about raising the DEBT ceiling (see previous story here).

Things are getting real contentious on this ordinarily dry subject.

Before raising the nation’s debt ceiling (think of it like a credit card limit) both parties want an agreement on other economic savings.

Though both sides can agree this is good, they differ in the preferred methods.

Democrats are looking for new revenue sources (taxes), while Republicans are allergic to raising taxes and instead want to cut government spending.

This week things took a turn for the worse when Republicans stormed out of reconciliation talks in a huff.

The only hope for for a resolution (and aversion of global economic peril) now rests with the top dogs.

President Obama has announced that he will meet with Senate majority leader Harry Reid (D) and minority leader Mitch McConnell (R), signaling that he is going to take a lead role in the debt-limit negotiations.

Jay Carney, white house Press Secretary said,

“The president is willing to make tough choices, but he cannot ask the middle class and seniors to bear all the burden for deficit reduction and to sacrifice while millionaires and billionaires and special interests get off the hook.”

If the folks in Washington are anything like we are with deadlines, we expect this whole mess won’t be resolved until 11:59 on August 1. In the meantime we also expect a lot of political panic in the interim.