We could default and get to keep all the foreign goodies! :) That would mean a stop to the economy but we could start from new. That also means higher savings rate and probably a new currency, something like the New dollar (it must be backed by gold in order to make international payments). The Fed wouldn't do this because it would mean lost of principal to their owners (the banks).
The fed is also tightening through other unconventional mechanism such as charging a fee for counting and replenishing old notes (as a side effect expect dirtier $10 and $20 notes in circulation) Here's the
link: I Think they're doing that so that banks will have more available cash.