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Here's an interesting question: Does the United States need to pay-off its debts so the USD doesn't collapse? No, at least not in full. Obviously, at this rate, the US debt will continue to rise. Holding large debt has become the norm for individuals, businesses and governments. They're all holding larger debt than in previous decades and if just about everyone is doing it, then it becomes acceptable practice to a large (or to some) extent.

Does the US need to cut military spending? Cutting military spending shouldn't be an option. The US needs to continue to 'control' the seas and geopolitical world to a large extent. It would start to lose its real empire if it gave these up. And it won't. Some county would always (at least, want to) fill the void of world domination (even though some believe all nations should participate in global decision making etc), and I'd rather see the US hold this title. Just look at the alternatives! I could go on and on...; I don't think you can have global cooperation like some socialists believe. You would always have some country that would want to dominate and this would create the same set of problems we have today, if not worse. Better the devil you know in this case.

Other creditor nations to the United States would stand to lose more if the US just shows them the finger. Kind of like Neo living in a world that was controlled by the Matrix, we are living in a world that is controlled by the United States (systems built and controlled by the US that are hidden to most of us), although there is a growing presence of opposition to this control and some of it must be coming from within the United States; the, in my opinion, near collapse of the financial system in 2008 was premeditated to some extent. Another reason why the military and protective services units/agencies (NSA, FBI, CIA, police etc etc etc) should continue to be funded to protect the US from all forms of harm. And this should be separate from congressional oversight, as congress can't follow through with meaningful and worthwhile measures to protect US interests. Factional fighting is out of control and too many special interest groups have too much political influence. Congress just can't be trusted anymore.

Raising taxes in these times is counter-productive to reinvigorate the United States middle class (with too much future debt obligations as things stand). Raising salaries (which would see an increase in tax revenue anyway) would make more sense down the track. The bar has to be raised to keep up with larger debts. This has to be a viable option in due course. A wealthier US citizen (and even illegal alien) would mean more purchasing power, more money to pay-down debt and more reasons to spur the local and non localised US economy.

The world is seeing a public versus private battle going on. The US, Greece etc is downsizing the public service (or attempting to), selling off state-owned assets and privatising whatever it can. This appears to be preplanned to some extent. By deliberately bankrupting a town, city etc you are going to go after any state-owned asset they have to meet debt obligations.

I don't think the US will reduce its debt over the long run. It will try and reduce the public sector or even privatise it (not its protective services agencies), but this won't even cover any interest repayments. It is possible that a major war will break-out in the future and this will restructure world creditor and debtor markets. I'm sure this occurred during WW1 and WW2. This may be a likely outcome if the US is pressured too much, given the position they're in. Another reason why a secretive presence in the financial markets is paramount. The so-called free markets are not there to destroy countries like the United States and its middle class. The way 'Wall Street' operates, it is a free-for-all. Wall-Streets' own sense of reality is vastly distant to main street's and there shouldn't be such a gap. In a world full of laws that prevents, for example, my neighbour from steeling my lawn mower, why is Wall Street (and co) allowed to manipulate and transfer middle class wealth to a sophisticated elite in and outside of the US? Nothing has really changed and it's a matter of time before another GFC (perhaps worse) occurs.

The US controls markets around the world. Who stands to lose the most if the US decides not to pay its foreign creditors? That would be the creditors themselves and to some extent the US itself; pretty much all countries on earth as a US default could send markets tumbling south, and even surpassing the GFC. Sure all markets are interconnected, but the US would stand to lose less overall.

Trading partnerships are a forced proposition to some extent. Sometimes you've got very little choice but to trade the way the US wants you to. You have to ask yourself why countries just stop using the USD to trade oil. It looks easier than what it actually is. A total break from pertodollars could 'create' a major war. Other nations don't have the control they probably think they do over their own and other markets, anyhow.

Whatever the US stands to lose, other nations stand to lose more. China for the moment would be the only major exception. It will continue to build wealth and a great part of this will continue to come from within its borders. But it will never be in a position to control world markets like the US does. Other nations don't really have a say whether the US controls markets in general. The complex systems the US established and continues to create and dominate (like algorithmic market trading computers) is setting-up the US for the next generation and beyond. The US is also making sure other countries/competitors are peddling backwards, and to a large extent, thank God they are. The systems are in place to make countries like China very wealthy, but insulated from controlling world markets.

The US needs to ensure more counterproductive (to the US) market manipulation doesn't occur. Only true patriots, like in its protective services in general, can adequately form a resistance to this ongoing 'wall-street' hijacking of the US economy and the future of the United States; protective services agencies (the lot, NSA, FBI, CIA etc etc) should protect US citizens, interests etc from these out-of-control traders as much as they should from some lowlife with a bomb. Congress, for example, is not the savior it thinks it is. They are counterproductive to a consistent, worthwhile, followed-through set of plans to see the US collectively reemerge as a dominant world player with a strong middle class.

And if anyone can tell me of a better dominant player to fill the void of the world superpower, I'm all ears....I just can't see it happening. Of course, I have this as a bias so you better try pretty hard.