As previously stated the United States is on a crash path to where it will not be able to meet is obligations. Consequently, in most instances, the most viable alternative is debt restructuring.
Debt restructuring is an extreme remedy invoked when the U. S. can not fulfill its financial obligations. In this instance the U. S. government would negotiate with its principal creditors. Such an action will have significant global financial repercussions and will harm the U.S. credit rating, making future borrowing more expensive and in many instances difficult, if not impossible.
It should be noted that work on the aforementioned debt restructuring programs should begin immediately because:
- federal agencies have little experience in developing debt restructuring programs for governmental agencies.
- plans will have to be developed for all major borrowers in the private sector and recognize a mandatory consideration of non-market benefits provided by the participants to their debtors.
- every four years Presidential elections could result in changes to the said plans.
