1. The debt will be massive, much worse than anyone expected.
2. It will take much longer to pay off.
I'm not as optimistic as you Moon. In the same way that the alarmists talk of a "tipping point" in global temperature after which it will be out of control, I have no doubt that there is one [a REAL one] with a nation's finances. After you pass it, prudence, and austerity just won't cut it and you must inflate your way out of it via QE. You don't need me to list all those that have already passed that point.
IF China hangs in there and prevents a busting of the resource bubble and the US uses it's cheap energy to rebuild it's industry, we will have a fighting chance. If things go pear shape O/S we are in for a hard decade. I just hope it isn't too late.
And another thing: Italy at least has sizeable gold reserves, we have bugger all.
