I wondered that too. My guess is that he think democracies don’t have the will to do austerity (for real).
I think he is right on that point, at least in Europe. Greece will never follow through with the austerity measures, as they will tire of rioting in the streets and challenges to the government. I suspect the French will vote in DSK or whatever Socialist candidate promises to allow them to go back to retiring at age 60 again. And even the Brits will likely crack under the pressure if these “uncut” protests continue to grow.
Whether we have degenerated to the same point I think is something we are about to find out.