“...it is now practically impossible for them to pay their way out with causing a major financial meltdown and meanwhile every day they are piling on more debt?”
Yep - keep it going until the ruling class is sure ALL the (soon to be) serfs’ money will be transferred to them when the collapse occurs.
I think the solution being tried (by the Powers-That-Be) is to have their Central Banks create $$ out of thin air, then turn around and buy sovereign bonds at artificially low interest rates. That’s been going on since at least 2009 to keep the bond vigilantees at bay. So far, its “working” in the sense that the Economy hasn’t melted down; but neither has it recovered.
The center-of-gravity of the strategy is to keep interest rates suppressed to almost zero. If Sovereign interest rates rise, then the Welfare State quickly becomes unaffordable and all Hell breaks loose. You see this happening in Greece and the smaller European countries. These are countries that have no Central Bank and are no one’s reserve currency, so they will suffer because they are “expendable” compared to the US and Japan.
Its not free, however. Keeping interest rates near zero is a HUGE STEALTH TAX on savers. Make no mistake, they are the ones paying the price for everyone else’s mistakes.