Sad to say, but there really isn't a choice here. If we don't do it the US will default and our credit will rank somewhere between that of Greece and my out-of-work BIL. That would be bad, but we DO have options. Just like an over extended homeowner we could sell the proverbial house and "downsize" into a smaller, leaner version of a country. Of course Rob's paycheck for working at the Grand Canyon may be drawn in yuan, but we COULD get out of debt.
I think part of the reason we don't sell off assets, other than the fact that its un-American, is because the interest on our debt is so cheap right now so the politicos can pretty easily justify adding to the pile. What gets lost in translation seems to be the simple fact that even cheap debt is still debt! For now dollars can be borrowed cheaply. Just like any other loan the best time to pay it off is before it gets expensive. The US is leveraged out on a 30 year ARM. It won't be long until the rate starts going up.
So what do you think, should we sell off some assets to get out of debt? Pay the debt down to maintain the most valuable asset of all: our credit rating? Should we sell the gold in the NY Fed, coal leases, Fannie Mae stock, the SPR, the Aleutian Islands? Maybe we call in some TARP loans and sell of a couple hundred military bases around the world. What would you do?