"If he should ever approach such an entry by the time his finger hits the 11th zero on the keyboard the entire system will collapse from beneath him - that will be the complete collapse of the US monetary system and rejection of it by the entire world including Americans."

Totally agree E, the situation is dire. By all accounts, Bear Stearns, AIG, etc. had the capacity to bring the $54T mountain (not to mention the global derivatives that the BIS estimates to be over a quadrillion) down on their own. This was narrowly averted. Likewise in the UK.

Just as it is unimaginable to have the $54T created out of thin air, it is equally unimaginable for it to all simply "default". Either choice is aweful. Can they walk the tightrope? We'll see!