Default on the US debt is not really an option for a variety of reasons. US corporations have billions in overseas assets. Think plant and machinery. A default would put all those assets at risk as foreign creditors look to collect. Think about the overseas investments of Deere, Ford, GM, GE and so on.
That said, there really was no risk of default last week. There is plenty of money to pay the interest and the maturing debt could have been rolled over.
The US economy, and people, are strong and resilient. The economy would bounce back literally in weeks given the chance. The prescription is easy: cut spending, cut regulation, cut taxes.
Beyond that, specific policies to create a good climate for business are also simple, especially in the energy sector. Government policy should be aimed at letting business create vast amounts of cheap energy in all forms. A good start would be to close the EPA and the Energy Department. You would save a lot of money and cut a lot of red tape. The US is an energy colossus. It has been tied down by government policies. Unleash the colossus and the economy will thrive.
By the way, don't look for your present president to invoke any of these policies.
He's not my president, FRiend. :)
Default on the US debt is not really an option for a variety of reasons. US corporations have billions in overseas assets. Think plant and machinery.
I don't believe a foreign country can nationalize a private corporation's assets in compensation for that private corporation's sovereign's debt default. By that I mean a foreign country that follows international law (countries like Cuba and Venezuela have nationalized foreign-owned corporations just because they wanted to and nobody was going to stop them....).