Pretty much looks that way , if one reads between the lines. More interesting will be Europe's response over the next decade - will it be domestic savings, devaluation and export policies ? Much like Asia after its run-in with the IMF over a decade ago ?
Austerity for the entire world won't work. Everyone cannot be an exporter and a saver when the components of a capitalist system push for growth. And we do have a capitalist world-system, because surplus capital is mostly controlled by the private sector. Hence the power of bond 'vigilantes'. Though these vigilantes are as inseparable from the system as a zebra is from its stripes, and railing about them is pure political theater.
At this point, these guys are flailing. They're not evil geniuses or even cunning. They have power through accident and history. But they're about as capable as BP is proving itself to be in the Gulf of Mexico.