The government could just keep borrowing the money to make up for the deficits. That is assuming other countries are willing to lend it to them. In light of our government’s reckless spending, they may begin to worry our government will default on its loans.

If other countries will not lend the U.S government money, they may be able to sell enough bonds to our central bank, The Federal Reserve. Since the Fed has the government granted monopoly privilege of buying government debt by creating money out of thin air, (counterfeiting), this shouldn’t be too difficult.

However, there is small problem: The risk of Hyper-inflation. Is this what is likely to happen and does Obama know it? Perhaps he sees this as a way out? He could borrow like there is no tomorrow and then pay back the massive debts his administration accumulated with worthless dollars.

A new currency would have to be introduced later, of course, but this has been done by many governments. Are we going to end up like Zimbabwe?

Of course, the federal government could start auctioning off all its excess assets, such as land controlled by the BLM, National Park Service and National Forest Service. Or it could sell Alaska back to Russia and Texas to Mexico, but it isn’t likely.