This week Obama, President of USA, announced the reduction of the public deficit. Obama oscillates between to save the USA and to preserve the Empire, two incompatible things.
I think that the Americans should study the recent history of Portugal: http://en.wikipedia.org/wiki/Carnation_Revolution
While they tried to maintain the Empire the Portuguese sank politicizes and economically. When they noticed that the Empire was incompatible with the new Portuguese reality, our small European siblings got rid of the military expenses to preserve a broken Empire and they started to have a larger life quality in home.
The solution to the USA is just one: to close the more than 600 military bases and to reduce to 1/20 the expenses with the contracts of supply of the armaments factories. The Americans will be as smart as the Portuguese. I think not.