The dire warnings over a failure by Congress to raise the debt ceiling by the Aug. 2 deadline cannot be ignored any longer. Anti-tax and smaller-government idealogues with the Republican Party risk real economic and political damage by blocking a deal to allow some tax increases to be part of the overall package.

Already, rating agencies including Moody’s have threatened to lower the nation’s AAA credit rating. Such a move, which would be the fate of any country that defaults on its obligations, would see investors like China worry about the safety of their investments in Treasury bonds. The perception of higher risk would result in higher interest rates, which would increase the cost of government borrowing. And because other interest rates are tied to Treasury bond rates, higher interest rates would hit borrowers across the country, including private businesses, homeowners and credit card users.

The financial chaos created by a failure to approve raising the debt limit would no doubt cause gyrations in the stock market, risking already shaky investor confidence and possibly doing further damage to stock valuations and eroding the value of millions of Americans’ retirement investments and 401(k) accounts. There are already signs of nervousness and uncertainty buffeting the stock market.

Beyond the financial risks, the tea party-backed newcomers to Congress who are pushing the debt-limit deal to the edge of the cliff, and possibly over the edge, are inviting great political risks to the Republican Party.

Clearly, both parties are playing politics with the debt-ceiling debate. But hard-line Republicans are increasingly isolated in their resistance to cutting a compromise deal with large long-term spending cuts to entitlements and other programs along with some smaller amount of tax increases or closing of tax loopholes.

Sen. Mitch McConnell of Kentucky has warned other Republicans of the risks of failing to make a deal. The Senate Republican leader reminded the more rigid members of the GOP that the party suffered politically after the 1995 government shutdown that resulted from the standoff between President Bill Clinton and Republicans led by former Speaker of the House Newt Gingrich.

Former Sen. Alan Simpson, R-Wyo., a co-chair of President Obama’s debt-reduction commission, has harsh words for his fellow Republicans. Simpson says rigid opposition to tax increases and other revenue increases is unrealistic. “The stuff that’s going on in my party, where the pettiness overcomes the patriotism, it’s just disgusting to me.”

Simpson’s disgust at the brinksmanship and games in Washington is shared by most Americans.

He pointed out that President Ronald Reagan raised taxes at times during his presidency when he believed it was in the best interests of the country.

One proposal that might allow debt-obsessed conservatives to cut a deal came in an op-ed article in the New York Times by Al Hoffman Jr., a former finance chairman for the Republican National Committee. Hoffman wrote that fiscal conservatives and tea party types should push for a big compromise deal, but “rather than go to their martyrdom as ideological purists, they should open the door to tax increases — but only if every dollar in new taxes is applied to deficit reduction and is matched by at least $4 in real spending cuts, including entitlement reform.”

Some compromise, based mostly on long-term spending reductions, but also including some tax increases and closing of tax loopholes, would be a good deal for the country — and for Republicans.

Simpson noted that Reagan, who is idolized by many tea party-backed members of Congress, was a fiscal conservative and a pragmatist. Simpson said Reagan had a rule about doing a compromise deal: “If you can agree on 80 percent of it, take it.” He noted that Reagan “raised taxes 11 times in eight years. He did it to make the country run.”

The hard-core Republican minority threatening to block a compromise deal on raising the debt ceiling should heed these threats and warnings, both economic and political. They should settle for the best deal they can get, but do what’s best for the country, not their own narrow political agenda.

It’s time to end the games in Washington — and put the country ahead of political party, ideology or ego.