It implies that the US can kick the can down the road as long as the dollar remains the world’s preeminent reserve currency, and America offers the best safe haven for skittish capital owners. By 2015, according to this logic, politicians will have done nothing to raise taxes and very little to cut expenditure, so the US will still have a budget deficit of around $1 trillion, and will finance a substantial portion of it by selling government bonds to foreigners.