Let’s get real. The United States is bankrupt. Neither spending more nor taxing less will help the country pay its bills.
Most likely the United States will see a combination of all three responses, with dramatic increases in poverty, tax, interest rates and consumer prices. This is an awful, downhill road to follow, but it’s the one the United States is on. And bond traders will kick the United States miles down the road once they wake up and realize the United States is in worse fiscal shape than Greece.