Wikipedia s ten second answer to solve the US DEBT CRISIS GAAP Accounting changes to how a government defines a defict and a surplus In a deficit the government enters more deposit credits then it earned And is a surplus the government enters less deposits into the bank of clearance matrix Balance the two over time Quantitative easing and management of the domestic bank of clearance obligations and equations the government can directly create deposits without having to borrow The banks that receive the deposits are happy as the bank of clearance honours the loans those banks makes from the deposits it receives from the spenders of this deficit spending In my home nation we have 60 billion in fiat currency outstanding yet the federal government budget is 200 billion and this fits into this as it is not cash the taxman receives from your cash but deposit credits End the government debt crisis in the world and it is still based on that the governemnt books must be balanced like a household only that it s borrowing directly from its bank of clearance equations Some people will still think its the same system which is makes it cool Key advantages Aggregate supply curve even if straight this is the least government taxes for the most service The current system can accomidate this Not a drastic change No longer will a nation face ruin if it can balance its books Before even with balanced books if in the hole not balanced America is okay now A nation s definiton of interacting with the money supply is no longer expontential This accounting adjustment is from the Journal of Association of Federal Reserves Any thoughs questions Easied quantitative easing defintion there is