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As 2011 comes to a close, we're taking a look back at how we covered some of the biggest news stories of the year, including U.S. politics.

Washington was on the brink of a shutdown several times this year, as Democrats and Republicans jockeyed over raising the debt ceiling and slashing the budget. The federal government may have avoided this worst-case scenario, but partisan politics derailed and delayed other important legislation that will affect all Americans next year and beyond.

Ratings agency Standard & Poor's downgraded the United States' sterling credit rating by one notch in August, the first cut since the U.S. was awarded an AAA rating 70 years ago. The agency said the budget savings approved by the deficit commission fell short of what is needed to restore America back to fiscal health.

Washington's most egregious blunder is probably the failure of the 12-person "supercommittee" that was given the task to find at least $1.2

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As 2011 comes to a close, the world is looking ahead to 2012 with a mixture of hope and trepidation.

Despite the Mayan prophecy, "the world won't end in 2012, but at times it will feel as if it is about to," writes Daniel Franklin, editor of The Economists' The World in 2012.

As with most observers, Franklin's big concern is the state of the global economy, particularly policymakers' response.

"It could feel very, very scary at times if the politicians don't get out in front of [Europe's crisis]," he says. "So far, they're running behind."

Efforts to combat Europe's debt crisis and deal with America's long-term fiscal challenges will be complicated by local politics in 2012, Franklin says.

In addition to the U.S., China, Russia and France will also be selecting new Presidents in 2012, albeit in very different ways. "Global leaders are going to be preoccupied with what's happening at home," he says, raising the risk of a policy error.