The sad fact is that neither of these actions nor a combination of the two will actually take place.
We are faced with either a mind blowing inflation or total or partial repudiation of both state and national debts which would not be legal but will happen, in any event. We can only hope that after government takes this drastic action it will return to a real asset based currency and bar further artificial creation of money via a Federal Bank.
The only choice is to eliminate *millions* of government bureaucrat employee positions which will reduce the size of government dramatically.
In addition, those government employees left working will have their wages reduced to at or near minimum wage for the privilege of serving the people. No more government life long bureaucrat careers. Serve 3 years, then out.
Furthermore, the millions government employees, who are currently retired, will have their lottery style government pensions dramatically reduced, in many cases up to 50 percent reductions across the board.