He's talking about Europe.
"The US, Britain, and Europe are together embarking on a sudden and severe tightening of fiscal policy"
The guy is a wall to wall Keynesian. Printing money/borrowing massive amounts of money don’t work anymore than a bankrupt person getting new credit cards to jump start his economy works. There is no free lunch Ambrose. Deleverging is a painful but necessary first step to rebalancing our economy - it would be less painful if we cut regs, defunded the Dept of energy, labor, commerce, Obamacare, etc., cut corporate taxes to 10% if not zero. 2012 can not come soon enough.