when looked at critically, the budget position of the United States is no better than that of the more feckless EU countries, while several of its states are close to bankruptcy. Japan too has debt levels so high that its credit would be questionable in any crisis. Rich country government debt, since 1694 considered the safest of all assets, could be forced into write-down as rollovers proved impossible. If that happened, the global economy, in which confidence would have vanished, would almost certainly descend into a recession that would rival the Great Depression and might well prove permanent as overpopulation, resource and environmental problems overwhelmed its ability to recover.
I agree with the main point: A huge price will be paid for many years of mal-investment in the US and other richer parts of the world.
In the 1930s, for the first time in human history, the American government decided to pay farmers to not grow food. Why? To keep food prices high and the farmers happy. This economically destructive policy was used right in the middle of the Great Depression. Recently, the American government has taken productive dollars away from taxpayers and given it to businesses that are failing. These workers are making products that are not profitable in the market but such businesses have enough muscle to steal money from taxpayers. Again, it's another policy that makes little economic sense.
The immediate future will bring a lot of pain. As Vox Day has stated, we are in the Great Depression 2.0.