The US has been able to borrow larger sums for longer than European countries. More people and countries around the world will accept dollars and lend money to the USA.
Even the USA will discover there are limits to how much other people’s money you can spend before they refuse to lend you so much on such favourable terms. The politicians in Washington had realised that before Standard and Poors yesterday put the USA on notice of a possible downgrade of its credit status. A mild rebuke from the Agency attracted a lot of media attention. It has given the US politicians another push in the direction of deficit cutting. The Agency did not take sides between the Democrats who want more to come from taxes, and the Tea Party members who want more to come from spending cuts. In a run up to a Presidential election there will be plenty of politics in arguing over how, how much and when deficit reducing measures should be put in.
Meanwhile expect the lawmakers to agree that their current limit of $14 trillion of borrowing is simply not generous enough. This will be relaxed.