[Goose]

It just doesn't matter than much when you borrow in your own currency, and aren't doing totally dumb things with it.

Can't agree with you here. It doesn't matter much when you borrow in your own currency and your economy expands enough (for whatever reason) to "water down" the debit. If the economy doesn't expand, you will in the best case inflation, which will drive the value of old debt down and make it easier to pay off. The inflation part isn't good for lots of folks, but at least their is a way forward. Worst case, people lose confidence in the currency, domestic economic activity drops, and you have a depression. Think Wiemar Republic.
The previous "recovery" wasn't effective because it was fueled by corporate and individual borrowing. I submit that we don't know how to avoid that happening again, but on an even larger scale.

[Goose]

It just doesn't matter than much when you borrow in your own currency, and aren't doing totally dumb things with it.

Can't agree with you here. It doesn't matter much when you borrow in your own currency and your economy expands enough (for whatever reason) to "water down" the debit. If the economy doesn't expand, you will in the best case inflation, which will drive the value of old debt down and make it easier to pay off. The inflation part isn't good for lots of folks, but at least their is a way forward. Worst case, people lose confidence in the currency, domestic economic activity drops, and you have a depression. Think Wiemar Republic.
The previous "recovery" wasn't effective because it was fueled by corporate and individual borrowing. I submit that we don't know how to avoid that happening again, but on an even larger scale.