Two Choices For America, Greece and the EU

I've thought about the possible outcomes for the US and EU economies (and currencies), and there are really only two choices that governments have to make with regards to federal spending:

1. Actually make Honest-to-Pete cuts in spending, and balance the budget(s) without more borrowing or money creation, about 35-45%. Today. And no, I'm not kidding. Or, behind Door #2:
2. Stay the course, and keep borrowing, spending and printing more money until the economy and currency both collapse.

Anything else in between is a variation of Economic Door #1 or Door #2, because at this stage of the financial and economic game, nothing else can be done. The United States' 'official' National Debt figure is now greater than our annual GDP. That's where Greece was about 12-24 months ago before their situation got really serious.

If Congress, the President and the Federal Reserve had taken action to deal with the big, insolvent banks and financial companies after the Crash of 2008, and made the spending cuts then...  it would have been easier - although not without financial pain to these companies and Americans - to make the tough choices then. But now, it's just about impossible to avoid the inevitable financial discomfort that's coming down the pike.

It won't matter if a Republican (except maybe for Ron Paul) gets elected President, and the (formerly) Grand Old Party takes control of the Senate. I've seen no evidence in the past to prove that politicians on both sides of the aisle are serious about reducing the size of Fedzilla.

Republicans have better rhetoric about limited-government, but gosh darn it, they just can't seem to make those tough decisions and cuts. Both Rs and Ds will be forced to make these big cuts when times get tougher for most Americans and small businesses (not that they aren't challenging today).

My prediction for the future of the US, EU and Greek economies, is the same as Mr. T's in the Rocky movies: "Pain."