I think Keynsian economics does work. Creating credit out of thin-air helps stimulate and kick-start things. It accellerates the economy and allows it to grow more quickly. People buy stuff and the economy grows. Makes sense.

I believe, however, there is an optimal level of debt. Not enough is bad. Too much is also bad. And, once you are past the point of optimality, piling it on gets you farther from optimality.

We are well past that point and whomever writes articles like this doesn’t realize it.

It is analagous to priming an engine with gasoline. If you put just enough fuel in there, the engine starts, but if you flood it, adding more gasoline isn’t going to start the engine, even though we all know that engines run on gasoline.