Limitations of debt deflation

QM theory says something here. Quantization means an imbalance, uncorrected, will be ever more concentrated into infrequent trades of large size. Eventually the market participants become few and the trade becomes a bankruptcy negotiation. Balance sheets, arranged in hierarchy, pass the imbalance up the chain, to the boss. As it passes up, the market get ever less liquid. Inevitably the trade comes to a single transaction between a few bond holders and the voters acting en masse, otherwise known as a default deal.