The US federal government is headed towards an unprecedented financially devastating default on its debt. If that were to happen, the economy would enter recession, shedding eight million jobs, warns a recent analysis. The White House and Capitol Hill leaders are reportedly scrambling to avoid the catastrophe that could arrive as soon as June 1, even as Republicans want to introduce cuts to federal spending, while Democrats seek to raise the debt limit without conditions. President Biden has several strategic options available, including continuing to hold out for Republicans to raise the nation's debt limit with no strings attached, which would be an attempt to stare down House Republicans as many progressives urge him to do. Consequently, Speaker Kevin McCarthy of California might refuse to give in, leading the government to run out of cash to pay its bills on time. Alternatively, the President could prepare unilateral action to bypass the limit and keep paying the country's bills effectively, but each path carries potential risks. The most significant risk is economic calamity. Therefore, Biden needs to decide the best course of action, with economists urging a quick resolution.