Democrats

The United States will inevitably default when the debt ceiling deadline on August 2 comes, noted David Murrin, chief investment officer at Emergent Asset Management.

"It's inevitable that the US will default - it's essentially an empire which is overextended and in decline - and that its financial system will go with it.

“The question is: does it default when it is forced to by the outside world, probably the Chinese, or does it take the option to default on its own terms in such a way that it may have a strategic advantage," he said.

In light of the forthcoming elections in November members of the US Congress are actively considering policies to cut the double-digit unemployment rate as they themselves may lose their posts. With the jobless percentage highest in 25 years job creation becomes the main focus of Democrats.

"Americans have a lot of angst, a lot of anger, a lot of fear," said House Democratic leader Steny Hoyer. "Whether you are a Democrat or a Republican or an independent, all polls show that jobs are the major issue."