You gave China as an example of a country that had used austerity to get out of a recession, but China wasn't in a recession. Not recently and not in the 1990's. Do you even comprehend that a country that is not in a recession can not use austerity to get out of a recession? This is like arguing with a retarded dude who is on angel dust.
Germany IS currently "slipping to malaise of the rest of the west" as you so eloquently put it. It grew at 0.1% last quarter which is a rounding error away from a recession. It was growing at 2% a year in the summer of 2010. Then it implemented austerity measures. Now it is near a recession. Do you comprehend that a country that isn't in a recession that implements austerity measures and then is near a recession isn't an example of using austerity to get out of a recession?
Krugman could have predicted what would happen to Germany. I think he did, actually.