As a Libertarian, I would disagree with your argument. :) The Fed and Bernanke and your "debt-based life-cycle" manipulate interest rates in order to incentivize companies to spend now instead of saving. This has always seemed to be short-sighted. If the company thinks it best to save, it is probably best for them to save. I tend to believe their analysis of their own financial situation. The Fed, however, thinks that saving is bad and uses inflation to force them to spend earlier than they would have. They think this "keeps the economy going". I think it is more likely to be a wasteful short-term stimulus to the economy. The economy isn't just a chart that we need to keep high, it's a collection of a million million personal/corporate decisions, and forcing those decisions to be less optimal for the individuals in ways that may stimulate the chart does NOT necessarily improve the reality.