Excerpt:
new debt in a Keynesian economy must be increased every decade, not at a steady rate but at an accelerating rate, in order to keep the economy growing. If the Fed does not succeed in getting us to assume larger and larger doses of debt every decade, it runs the risk of the economy’s business and investment sectors starting to deflate. This is the ugly secret of Keynesianism, never acknowledged publicly and never taught in our schools. But Fed officials know very well that if they were to slow down the increase of debt for a few years so as to balance with society’s debt liquidation, it would dangerously deflate the economy.