This going to get really, really bad. Worse than it has to, because the assholes who are running the world see debt as a bigger problem than unemployment (largely, because they live off rents rather than salaries). So, we will have more cuts to government spending, leading to more unemployment, leading to less tax revenues and therefore more debt, leading to more cuts, leading to more unemployment and on and on and on, until these motherfuckers (out of self preservation if nothing else) get a clue, or until there is a revolution. The common people are going to be put through hell so that the ruling class can be cushioned from its own folly. My money is on revolution.
Update: Krugman has coined a new phrase, the "Downgrade Doom Loop", to describe the situation we are in. That just about covers it I think.
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