Unwinding the scheme hurts. We have about ten years to unwind our own far more deeply entrenched Ponzi scheme. No matter what we do, extricating ourselves out of the entitlement quicksand we are now mired in up to our armpits will be difficult, unpleasant, and will be met with great universal gnashing of teeth. But every day we wait makes the ultimate suffering that much worse. In my view, paying down the debt out of fear that failure to do so will trigger a depression is engaging in a self-fulfilling prophesy.
Recessions are unavoidable.
The boom-bust cycle has not been repealed. If only we had paid down more debt, or dissolved the FDIC, or x or y or z, we could have avoided this predicament. Just like a broken clock, Davidson sooner or later will be right. But virtually everything he has written so far in the way of predictions has been horribly wrong. You obviously worship in a different church than I do, and you may very well be attending the Church of the One True Light.