Do you think that, just possibly, our diminishing influence has to do with both our rapidly growing fiscal problems as well as the obvious partisan-driven dysfunctional government?

Neither of those problems is new, but they sure seem to have gotten worse in the last 10-15 years. Those "allies" who used to line up with the strong USA now seem to be seeking alliances with other countries which may serve their needs better in coming years. For foreign policy wonks, this is pretty predictable behavior. The only people who seem to be surprised are Americans, who seem to have a far more elevated opinion of our power and reputation in the world than may really exist.