I don't think that the primary power rests with the "nation states" anymore so in that sense the USA is dysfunctional already. I believe the facade that is the USA will remain in place as long as it serves the "masters of mankind" which may be quite a long time - at least a century or more. But rest assured that the real power lies with the multinational bankers and the "energy" companies like EXXON and BP and the "owners of life" like Monsanto. They prefer the facade of a "functional" democracy to cover the truth of their power. And they are in fact VERY powerful. Far more than most here are aware of or willing to believe.
As the next centuries past historians will look back at the "nation-state" as a failed experiment in democracy. Perhaps they will be lucky and we will actually achieve real democracy but we will have to find a way to wrestle power from the masters who would prefer that we remain ignorant and distracted.
Look, I know it is obvious that Bush and his clowns serve these interests but realize that Obama has just proved that he does too. It isn't rocket science and yes, we've deluded ourselves into believing this is a clique fantasy but that is our psychology and not the objective reality which is rather cruel and unforgiving. Particularly if we ignore it.
Sure the Obama/centrist democrat version of the social contract is a "kinder, gentler" version but make no mistake about who that social contract serves and why.