I’ve come to the conclusion that we are past the point of no return.
Default is the best option since, once it takes effect, no one will lend to us for a generation. Deficit spending will be impossible, which is why Keynesians are horrified by the mere mention of the word.
Inflation or austerity will induce a perma-depression.
Is this a bad thing?
The riots and millions of deaths from competing roving bands of thugs concern me a smidgeon more than the ability to go into debt again. The military might maintain pockets of control in certain areas.
Perma-depression? Sounds depressing to me.
We could turn it around, but the sacrifices needed will be unacceptable to a large majority of the US population. It means breaking promises made in regard to retirement and pensions of most Americans.
We would need to maintain a certain level of military to protect our borders. Policing to protect the citizens. Courts and jails to keep the citizen safe. Road crews to keep our roads maintained. That would be our government and nothing more.
I wonder how badly I would lose an election running on that platform?
Ditto. The election cycle is so predictable. Whoever is elected president, will continue to blame the previous president for the country's problems. Meanwhile, they sign new bills into law that span well into the future. Hence, when the next president is elected and attempts to remedy the errors of the previous one, their predecessor's bills emerge, like ticking time bombs ... and the cycle of blame begins all over again. Of one thing I am convinced: we need to shrink Federal Government. Newt got it right in this last debate.