I feel in the US we are closer to scenario two. Sure, it's theoretically possible to modify the constitution but people have been trying to decades and the level of political consensus required is quite extreme.

"Time for a new constitution"

Maybe.

The American Constitution is the oldest national codified government constitution in force. No other constitution has lasted so long. Ergo, either it's a really solid document that can still serve us - or its time has passed.

Or, I guess there's a third possibility. The Constitution might be like a virus - not an entirely wholesome organism, but very good at surviving. A document that can sometimes serve the masses, but also a tool for the elite when properly weaponized. Perhaps it's a document that perfectly balances authoritative power with social conflict.

I think, though, that our forefathers should have addressed a balanced budget in writing. If the budget isn't balanced and if the debt is above a certain percent of the GDP, then emergency elections should be held. This would avoid a lot of the looting from our coffers.