Hey moron, there's no "austerity" of any kind. The mad spending will continue until the printing presses run out of ink. That's the reality, and that's what the markets are worried about.
Part true if you were talking about Europe. US bonds tell a different story.
Crazy tho how austerity led to -%GDP growth, led to higher bond %'s and debt, which led to more bailouts, which led to more austerity, which led to -%GDP growth, led to higher bond %'s and more debt, which led to more bailouts...
Greece, Ireland, Italy, Spain... same thing. Rinse and repeat. Same in UK, but at least they had the good foresight to not jump off the Sterling.
The US has not passed much austerity, but no stimulus either. Instead we have policy paralysis where we are spending shit tons of $ on things that will have little help on the economy (wars, overly generous Medicare + partD plans, taxcuts, other bureauractic BS) all the while not investing in things that could be job creating (infrastructure, aid to states, mortgage mods.)
We are at a stalemate which is worst of both worlds, no likelihood of getting any better.