Denying Foreign Debt

Can/Will the Australian Labor Party break our 'strong' economy? It seems to me, they're trying to do exactly that. Greece, Italy, Spain, USA, are all teetering on the brink of financial ruin, and our government continues to rack up overseas debt with gay abandon. Banks, insurance companies, and the Tax department account for 50%+ of our personal and small business liabilities.
Here are two posts that are worth reading, showing that it is possible to deny debt from overseas sources, and avoid bringing down our economy.

As a sovereign nation, we really should be limiting the amount of foreign 'investment' (read that as debt). Control of our economy by foreigners is an inevitability at the current rate, 65% of current government 'borrowings' are from overseas, that is AU$65M per day.
The Australian Constitution is the foundational document that underlies everything our government and politicians can or cannot do. Perhaps it's time for an amendment forbidding budget deficits, and the shenanigans the ALP have employed to hide Billions from the budget to make it appear ok (e.g. the NBN is not included in the budget). Oh, and I particularly like the first article. Gaoling the Bankers and Prime Minister for perfidy sounds good to me ☺.
Activist Post: http://www.activistpost.com/2012/12/icelands-horur-torfason-how-to-beat.html#more

"In Iceland, the prime minister was indicted, over 200 criminal charges were filed against the bankers, and all of the former CEOs of the 3 biggest banks were arrested."

Bloomberg: http://www.bloomberg.com/news/2012-02-20/icelandic-anger-brings-record-debt-relief-in-best-crisis-recovery-story.html

"Once it became clear back in October 2008 that the island’s banks were beyond saving, the government stepped in, ring-fenced the domestic accounts, and left international creditors in the lurch."