Permit me to state the problem as I see it. Both parties have contributed to massive spending by the feds for decades with no end in sight.
The Tea party movement has disrupted this paradigm by getting a substantial number of Republican Representatives elected with a vow to reverse this spending trend.
The occasion for implementing this plan is to force the issue using the annual raising of the debt ceiling as the battleground.
The choosing of this battleground is fatally flawed, IMO, because the Republicans do not control two of the three parts of the government needed to pass a bill, the Senate and the Presidency.
So, the Republican HR passes a bill that then Senate and President will not abide. The Senate, with the blessing of the President, submits their version but the house will not consider it. Stalemate.
The credibility of the players has been staked. Now, who blinks first will loose.
Say that no one blinks by August 2, will subsequent events, after the default, introduce a new cast of characters? I would think the Senate and House leadership will resign, the President will announce he will sign a reasonable bill and a compromise will become a reality.
As for the mid to long term, the battle will continue with no clear cut winner and America will have suffered a bit more at the hands of our elected representatives.
(Oh, I deleted the part where I said "God damn them sons of bitches)