[USFRIENDINVICTORIA]

Good point. That's why Keynes was so concerned with fiscal policy — especially “counter-cyclic spending”. Today, monetary policy (”printing money”) could be more effective (and dangerous). One of the problems with “stimulus” spending, is that the spending is almost never done, when it's needed. We saw that recently, when Obama admitted that there weren't actually many “shovel-ready” projects.

[garbanzo]

It’s the difference between sopping up excess inventory and devaluation. I don’t think Keynes ever advocated the latter. I think even Keynes would find the debt levels we’ve obtained with cheap credit offensive and counterproductive.