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"Am I reading this wrong? Is he saying that somehow government austerity will cause the same things that massive overspending have caused? "

Yes.

The system will ultimately collapse from default or high inflatiom/hyperinflation.

The US government presently borrows 43% of what they spent. If that were stopped, we would rapidly plunge into a deflationary spiral and default. Keep borrowing and we will eventually hyperinflate.

There is no way back from here.

Some sort of serious collapse is in our future...when? Who knows. They're just 'kicking the can down the road' as long as possible. Every politician is hoping that it doesn't happen on his 'watch.' He wants to get his 'goodies' and get out of DC before TSHTF.

So if you were economic adviser to the President (which ever President, it doesn't matter) what would you advise? Get everything you can, transfer it to banks in Singapore and leave the country the minute your term ends?

Let's pretend that Congress and a few hundred thousand bureaucrats suddenly died of a heart attack tomorrow and were replaced by intelligent humans; or at least humans with a basic instinctual level of sense. Is there nothing, in your opinion, that they could do to correct our current woes and pending doom?