Yes, you are right that Keynsian demand pump-priming works hand-in-glove with inflating away debts.

The major problem with this whole approach is that it trades the health of the currency and the overall economy for avoiding a crash right now. If real productivity grows fast enough to keep pace with the damage, then it can continue. And let's be honest, the powers that be have done a decent job of walking that fine line between the two over the past 80 years or so.

Now we have instantaneous communications, a very competitive global labor market, and currency choices though. Personally, I don't think they are going to be able to keep this game going too much longer. 7 or 8 billion people makes for a massive amount of momentum, but I think fiat currencies are in their last 20-30 years of life.

When the world switches to trustless alternatives like crypto, all of these games that are being played and the crazy behaviors they encourage will either disappear or be dramatically reduced.