Budget Gap still wide

As I read the article about the budget gap between Republicans and Democrats not closing, I really didn't think it would anyway any time soon. (http://www.nytimes.com/pages/politics/index.html) The Congressional leaders and the president sat down to try and come to an agreement about the gaps. They emerged with a consensus to aim for the biggest possible deal. So now I am thinking OMG what is going to get cut now. Will they lay off more teachers, cut out the arts in school, Medicaid for low income families, or just do away with Medicare all together. They are trying to get the gaps closed by August 2 to make sure America does not default for the first time on its obligations. My thing is, haven't they already done that. Social Security is on the table to be cut now. So the entire time I have worked or anyone for that matter won't count for a hill of beans if you really need to get Social Security cause it just might not be there when you do. All the cuts are have really gotten me worried about the future for our elderly and low income families. Are we on the verge of being a third world country in some areas of the US cause I think that is what is going to happen.