“We cannot pay off that level of debt. We cannot default on our debt.”
Option 3: We (our government) can create money.
But isn't that just Option 1? We pay off that $200T debt through inflation and taxation. A loaf of bread might cost you $100,000, which (I guess) seems expensive -- but surely you can afford it on your 9-figure salary.
Playing with monopoly money doesn't strike me as an actual fiscal policy. But I guess it worked for Zimbabwe.