The U.S. Government has engaged in financial fraud for years, even while federal prosecutors scour the woods to find people whose illegal activities have been dwarfed by the government's "legal" fraud. (Of course, one of the biggest fraudsters, Jon Corzine, a former Democrat U.S. Senator from New Jersey, defrauded his clients by more than a billion dollars but will face no criminal charges because, after all, he was a member of the club.)
Not surprisingly, Paul Krugman has laid out a scheme by which the government, enabled by Ben Bernanke's Federal Reserve System, could bypass the debt ceiling and crank out more fraudulent paper at the same time. I cover it here in a Krugman-in-Wonderland post.