The US has managed to pull back from the brink of bankruptcy,
saved by a last-ditch effort to raise the debt ceiling. The
danger is not over as the shadow of a possible downgraded credit
rating, and further indebtedness, threaten to affect global
stability. By Sophie Ng THE START of August saw a flurry of
activity taking over the US Congress as the administration of
President Barack Obama battled to save the American economy from
defaulting on its ballooning debt. On the other side were the
Republicans, who felt that the Democrat proposal for monetary
salvation would further thrust the embattled US into the throes
of debt. In the past decade, involvement in the Middle East,
cuts from the previous administration, and government rescue
packages stemming from the sub-prime mortgage crisis, had all
contributed significantly to the burgeoning US debt. This led to
the Treasury announcement that it would run out of money to pay
its bills unless the debt ceiling was raised by midnight of 2
August 2011. On the eve of