Is Greece California? (Deflation Edition)

If sovereign and municipal credit markets tighten,
how could unemployment and business profitability be affected
if Greece, some other relatively weak European countries
and some US states implement severe budget cutbacks and tax increases
to balance budget deficits?

If the EU/US doesn’t bailout Greece/California
could the Euro and the US dollar retain credibility as commodity prices fall?

Could deleveraging in developed countries cause some over-indebted customers
to import less from lower wage paying emerging markets?

If cut off from credit markets and in danger of default,
could some emerging countries inflate currencies to maintain debt and spending?

We should consider ourselves unauthorized
to saddle posterity with our debts and morally bound to pay them ourselves.

Each generation has the right by will of its majority to bind themselves,
but none to bind the succeeding generation.

Thomas Jefferson

Is a Keynesian or Austrian path the most economically ethical?

Historical Rhyme: If Hungary, Bolivia, Brazil, Chile, The Dominican Republic, Ecuador, El Salvador, and Peru defaulted or had to restructure sovereign debt in 1931, and Austria, Bulgaria, Germany, Colombia, Nicaragua, Panama, and Paraguay did in 1932, before Romania, Serbia/Yugoslavia, Cuba, Guatemala, and Uruguay did the same in 1933…?

What could happen if a generation of underemployed, underpaid, educated and indebted young adults become disillusioned by their elders’ financial mismanagement and seek to identify and punish those responsible?

What may most likely happen after what happens after what happens next?

On Greece, Portugal, Spain, Italy etc…: Have the educated underemployed instigated most rebellions?