The only crisis that exist here is political. I am guessing that we will trim benefits, raise taxes, and write down our debt via inflation. After inflation (slow default versus instant default) ravages about 50% of our individual wealth, most of which is what other people owe us such us bonds, treasuries, mortgages, CDs, etc. and not real physical assets, then we will go on the next borrow and spend binge.
I was speaking of a government default on its debt which would end entitlements or a bond market dislocation, which would cause .gov to lose a drastic amount of $ and cut entitlements in half (at the least), not a default on entitlements. I thought I was clear, sorry if I was not.