The US position relative to the rest of the globe is irrelevant in this discussion. What is relevant is the relative positions of the parties compared to each other in American politics.
How about the positions of the parties relative to themselves at other times in American history? Liberal Democrats today would be conservative Republicans in the 1960s. You want to read an eye opener? Go back and read The Republican Party Platform of 1960 and compare it to the 2012 GOP Platform. Much of today's Republican Party is still present in the party of 1960, but there's a lot in there that has been carved off of the party and rejected as "liberal." Here's some gems from the 1960 platform:
"To this end [opposing the Soviets] we will continue to support and strengthen the United Nations as an instrument for peace, for international cooperation, and for the advancement of the fundamental freedoms and humane interests of mankind."
"Our mutual security program of economic help and technical assistance; the Development Loan Fund, the Inter-American Bank, the International Development Association and the Food for Peace Program, which create the conditions for progress in less-developed countries; our leadership in international efforts to help children, eliminate pestilence and disease and aid refugeesâ"these are programs wise in concept and generous in purpose. We mean to continue in support of them."
"Republican policy firmly supports the right of employers and unions freely to enter into agreements providing for the union shop and other forms of union security as authorized by the Labor-Management Relations Act of 1947 (the Taft-Hartley Act )."
"Republican action has given to millions of American working men and women new or expanded protection and benefits, such as: Increased federal minimum wage; Extended coverage of unemployment insurance and the payment of additional temporary benefits provided in 1958-59; Improvement of veterans' re-employment rights; Extension of federal workman's compensation coverage and increase of benefits..."
"Congress should submit a constitutional amendment providing equal rights for women."
"Strengthened federal enforcement powers in combatting water pollution and additional resources for research and demonstration projects. Federal grants for the construction of waste disposal plants should be made only when they make an identifiable contribution to clearing up polluted streams."
"Federal authority to identify, after appropriate hearings, air pollution problems and to recommend proposed solutions."
"Immigration has been reduced to the point where it does not provide the stimulus to growth that it should, nor are we fulfilling our obligation as a haven for the oppressed. Republican conscience and Republican policy require that ... the annual number of immigrants we accept be at least doubled."
These are all positions that would have Tea Party nuts screaming to unseat them in a primary challenge. The GOP has taken a hard shift to the right of center, and they've dragged the Democrats behind them by framing and controlling the debate and by shedding moderates by labeling them as liberals.
Lastly, and perhaps most topically on the subject of the debt.
"In order of priority, federal revenues should be used: first, to meet the needs of national security; second, to fulfill the legitimate and urgent needs of the nation that cannot be met by the States, local governments or private action; third, to pay down on the national debt in good times; finally, to improve our tax structure."
It seems like our current GOP has a different set of priorities: 4,1,3,2. Well, with the furloughs hitting defense contracts and late pay for servicemen and their families, perhaps it should be 4,3,1,2.