As I've stated before in regard to the debt ceiling debates, I think there are factions in government/finance in Europe and the USA who want to collapse the USA and European economy to preserve Euro-American hegemony (and neutralize the Chinese) by killing the US Dollar and possibly the Euro as well.
The scenario, I think, will go like this:
1) No debt ceiling agreement is reached.
2) Congress dithers for weeks or months as the government meets fewer and fewer of its financial obligations.
3) Eventually, the bond market panics. The USA’s debt is now unfinanced by China, et. al. exacerbating the government’s crisis. The panic spreads to Europe where the Euro dies a noisy death.
4) The shrinkage of government money tanks the economy of the USA. Deflation follows rapidly. The Euro becomes yet another failed fiat currency.
5) Through QE3, QE4, QE-forever or some other method, the government starts printing money in dollar denominations and injecting it into the economy in any way it can until inflation reaches Zimbabwe levels.
Result?
1) In the traditional fashion, the USA has hyper-inflated its way out of dollar denominated debt.
2) New currency is issued, but wages and prices in the USA are now realigned with BRIC and Chinese standards, making the American economy competitive on price.
3) The Chinese must either keep their currency pegged to the dollar, making it worthless and causing major political upheaval at home, or let it rise, making their export market much less competitive, which suppresses their economy.
In short, China is de-fanged while America and Europe are given breathing room while they still have military power, and oil is plentiful. The alternative, waiting 10 years for the inevitable default, would simply give China and the BRIC countries overwhelming military and economic advantage.
If pain it inevitable, better to take it sooner rather than later, if it takes your enemies with it.
Put yourself in the position of the "old money" elite in the USA and Europe vs. the upstart and uncooperative Chinese elites. If you were old money, what would you do?