The bankruptcy will come regardless of the "reasons". Look at Greece. Worse than that is on our doorstep. There is no need for politicians to cut welfare spending or defense spending. We already know they are incapable of retraining themselves in any way.
The "market" is going to solve the problem for them. A financial collapse will likely limit the politicians to spending only what they are able to raise in revenues (which will be a fraction of what it is now). Forget about deficit spending altogether. A bond market collapse will end those "good 'ole days" for years to come. Instead of everyone getting everything they want, politicians will go back to fighting each other viciously over the smaller pie the market allows them to have. Most all of us will have to learn to live with less for a while.
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