The US deficit is more than twice its total expenditure on defence.
The US has no easy way out of its mess. Whatever they do, things will be nasty for a while. They can influence the timing of the correction by putting it off, but only at the cost of making it worse. Similarly slowing the decline will make the period of people getting poorer last longer. Japan has had twenty years of stagnation, in many ways the US is in a far worse position.
The US can not keep its options open forever. Eventually circumstances will take over. The correction will test their democracy, particularly if the mainstream media and much of the intelligentsia continue to expound the big lie while the country racks up ever more debt.
If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.” Goebbels
Reality always wins in the end, normally on the battlefield, but sometimes in the grocery store.
The falling dollar will result in imports costing more. Oil and commodities will rise and this will impoverish those on low incomes. It will make the situation of older Americans even worse:
“Fed President Fisher makes part of the rest of the argument I’ve been making now since The Fed started financially rap**g our Senior Citizens – all of whom are being intentionally thrown under the bus to bail out the speculators and banks on Wall Street:
But I take no comfort, and see considerable risk, in conducting monetary policy that has the consequence of transferring income from the poor and the worker and the saver to the rich. Senior citizens and others who saved and played by the rules are earning nothing on their savings, while big debtors and too-big-to-fail oligopoly banks benefit from their subsidy.” Market Ticker
Who just a couple of years ago would have thought that the supposedly risk free returns associated with US government treasuries would become return free risk?