The US public debt now stands at 96 percent of its GDP. Compare that to Canada, for example, which has a debt-to-GDP ratio of 35 percent. Or even more dauntingly, consider beleaguered Greece - just seven years ago, its debt stood at 99 percent of its GDP, just a few points off where the US is now.

Needless to say, the pressure is on for Republicans and Democrats to reach an agreement before the August 2nd deadline on raising the debt ceiling. If they fail, the US risks defaulting on its debts for the first time ever.

Treasury Secretary Timothy Geithner has warned that the consequence of such a default would be potentially worse than that of Lehman Brothers' bankruptcy. The IMF has also said a solution is vital, and failure to do so would have far-reaching global effects. All three major ratings agencies have already warned that the US' coveted triple A credit rating would be in serious jeopardy if a deficit reduction agreement cannot be met.