It's the exact opposite of anything that John Howard would have permitted during his reign. It's also very, very smart.
The Australians are basically telling the whole world that the United States of America is insolvent and they are cutting the debt loose the same way we used to do with third world failed regimes that had made it obvious they would never be able to service their bills.
This limits the pain on Australians and is helping decouple our economy from what is a millstone headed straight for the bottom of the ocean.
The fake real estate boom was a great scheme to extend the working life of the 'Kwa another few years so it could be completely stripped of all assets before the final hour arrived. It's over now. There is no last resort left. Now the chickens come home to roost.