1) Give up and say there is no solution. It's all broken and we can't fix it because so-and-so would suffer.
2) Try to be good surgeons and make really really SMART cuts so that everything balances perfectly and no one suffers.
3) Default
I'm flat out in favor of default. No $20T debt. No interest to be paid on the debt.
Lower taxes, cut regulations, use the saving on debt to limp along and help the needy for <5 years while economic nationalism kicks in and grows the economy. Government bureaucrats should be hit hardest and first.
There is no avoiding this problem. There is no painless solution.
All the stuff that is "too big to fail"? I would nuke that stuff from orbit as fast as possible. Defaulting on our sovereign debt is a big deal. But until someone comes up with a better idea, I think it's the best idea I've heard.
I feel better now. Thanks! ;)