I think that's great for Australia but isn't the central question what would happen without US public debt? Australian public debt isn't a pillar of the world economy.
If you'd read it properly, you'd notice that Australia kept a pool of debt-in-name-only turning over to serve local financial market needs. About 100 billion AUD IIRC, or ~10% of GDP at the time. The money raised through those particular bonds was never used. It just came in, sat around for a while, and went back out with a very small interest payment attached.
The US could have done the same and I understand that is what this "secret report" recommended.
Economies would adapt - they always have, they always will. Bubbles and tiger economies existed before the US was even a whiff of a dream. It's not like the US is $14T in debt in 2011 and in 2012 it'd be $0T in debt - repayment would take a long time, ample to examine effects and counter where needed.
