President Obama had just arrived home, walking across Lafayette Square after attending Sunday services with his family at St. John’s Church. In the West Wing, Obama ducked into the spacious office of his chief of staff, where he found his negotiating team huddled with two leading Republicans and a passel of aides. To the outside world, it looked like a do-nothing summer Sunday, a disturbingly quiet reminder of government dysfunction. The prevailing theme on the weekly political talk shows was things falling apart. In two weeks, the government would be unable to pay its bills. Where were the administration and...