Now this vicious contraction of banks' capacity to borrow or fund themselves is exacerbated by the downgrading of their credit-worthiness by ratings agencies.

BBC: Business

However, in the short term, America's capacity to borrow at rock bottom rates is being damaged by the perception that its political class is incompetent.

BBC: Three crises prompt global stock market slide

But the point is that beyond -- after we cease to have the capacity to borrow money, every 60 cents we take in is 40 cents short of the dollar we need to pay out.

WHITEHOUSE: Press Briefing

We believe that the leadership in both houses shares our view that default is not an option, that allowing our capacity to borrow money end is not an option, and that will not happen, that in the end, we will maintain the full faith and credit of the United States.

WHITEHOUSE: Press Briefing

In the past, it's true that some had suggested that granting the ESM a banking licence would enable it to increase its lending capacity, because it would then be able to borrow directly from the ECB.

BBC: Good week for the euro - but also a warning

That would reduce corporate taxes next year while generating more in future years, but many analysts expect the effect to be limited for businesses that have unused capacity and can borrow at low interest rates.

WSJ: Package Would Give Obama Stealthy Stimulus