Hypothetical scenarios

Last week, Geithner said something to the effect that the administration can ignore the debt ceiling.  This raises some questions in my mind as to their own thinking.  A few thoughts follow:

1. The administration has no intention of deviating from the current course.  They will make token gestures to the Republicans, but as far as making an substantive change, this means NO.
2. The Republicans, for their own part, do not appear to be deviating either.  So far as I know, there is no serious intention to downsize the military or to raise taxes.  If these two options were followed, or even offered to the Democrats, they would be hard pressed to continue as they are.
3. If neither side is willing to deviate from their current path, the likely outcome is a default, if Obama refuses to go Geithner's route, or a constitutional crisis if he does.  The constitutional crisis may possibly be resolved if the Republicans go to court.  Either the Republicans win, or they lose.  If the Republicans win, what's next?  Does that mean that Obama will obey the courts?  He may just decide not the obey the courts any more than the Congress.  If the people follow him, they are choosing dictatorship.  If not, Obama must go.
4. If the courts take Obama's side, it means that the Republicans must win greater majorities in both houses.  Especially the Senate, for in the Senate, they can forcibly remove Obama.
5. In all these scenarios, there must be clarity and resolution.  If there is continuing confusion, the situation may just dissolve into anarchy, and possibly civil war.
6. Here is a hopeful scenario:  
7. a) cut military spending by 1/2 and get equal cuts in entitlements.  This will result in 700 billion in cuts.  If Obama holds to his demand for 1/3 tax increase v budget cut ratio, then raise taxes by 1/3 of 700 billion.  That would be roughly 200 billion in taxes per year.  The total would be 900 billion in deficit reduction in a year.  The trouble with this is that neither side is willing to do anything like this.  They aren't even getting close.  If they did this, they may avert a constitutional crisis, but that doesn't solve the economic problems.  For that, you need a growth plan.  But as we have seen earlier, the only growth plan that the Democrats may be interested in is one with no growth at all.  I would suggest the mastery of fusion energy.  It wouldn't cost much and the payoff could be huge.  That should be the highest priority.  If that was accomplished, then the economy may have a chance to recover.