Here is a CBS video segment from their Sunday morning show that focuses on what portends to be the major fiscal issue this year: The politics of increasing the US "debt" ceiling.
On the GOP side, Rep. Bachmann looks like she will be in a leadership position on this issue, here in this video, her bottom line to the Congress is: "Stop spending money you don't have", think about the absurdity of that statement!. She is also running an online petition on her PAC website for citizens to sign urging Congress NOT to raise the "debt" ceiling.
On the Democrat side, Rep. Weiner, who takes what at best can be called a "deficit dove" position that only advocates raising the "debt" limit in order to protect the "faith and credit" rating of the US Treasury, looks like he will be representing this position from that side.
The leadership in the Congress on both sides looks like they are not aware of the true fiscal and monetary authorities vested in the government; a government that they play a major role in.
At this point, it looks like the best we can hope for is some sort of compromise where the GOP agrees to an increase in the "debt" ceiling, in exchange for some sort of future nebulous commitment to cut future expenditures that (hopefully!) may never materialize. This (at best) could result in a continuation of current fiscal policy that on average is providing approximately $110B per month of NFAs to the non-government sector with sub-par output growth and zero employment growth. Some sort of "balanced budget" initiative, with tax increases and spending cuts, which would be the disaster scenario, seems like an outlier at this point, but you never know how politics may twist events.
This issue will play out over the next 3-4 months as that is when Treasury will run out of this self-imposed government limit on it's authority to net issue new securities.