Mince, I'm not an economist, but, I think "Just like an individual" you can get to a point of no return on your debt where your labor etc is going just to try to pay for the interest on your previous debt. The only way out may be to make the dollar worth less. I think it works in the short run and then screws everything up in the long run. My TV is worth half what it was a year ago new. Their dollars (theoretically) are worth the same as when I gave them to them. (minus inflation). If we were buying equipment for producing things then I would agree with the logic. but pure consumption of plastic crap....not so sure.