True. If they decide on taxation to "solve the problems" then the bond market will force austerity or interest rates will rise, becoming an exponentially increasingly larger percentage of the budget mandating more deficit spending and debt forcing interest rates higher.

Meanwhile higher taxes will reduce discretionary spending in an economy where 70% is based on consumer spending, thus reducing GDP and lowering wages thus lowering taxes they hoped to receive mandating more deficit spending - see above.

Finally they will open the printing presses full steam destroying the dollar and plunging the world into a cataclysmic collapse the likes unseen thus solving the budget problems.