I dont like debt defaulting, it undermines trust. That is a whole other can of worms, and has truly catastrophic consequences.

Better for govt to slowly pull back and let society and the economy slowly adjust to being less dependent on govt. Its like a drug addiction - the habit needs to be kicked, but if going cold turkey might stop the patients heart then best to just wean off.

Quote:
Have you considered that a) some portion of bubble is natural and healthy growth b) austerity eliminates that growth as well as bubble c) "fundamentals" might never correct and you can austerity into insolvency?


If it was natural and healthy, it would not need govt artificially pumping it.

For who could be free when every other man's humour might domineer over him? - John Locke (2nd Treatise, sect 57)