"Think what you do when you run into debt;
you give another power over your liberty."
-- Benjamin Franklin (1706 - 1790)
Remember that book by Michael Crichton -- was it called "Rising Sun"? Detailing how the Japanese owned so much U.S. land and that we were in danger. In that case, I do believe that the Japanese lost their investment shirts and it added to their recession.
Not to say that debt is good. Some countries are known for their frugal habits but remain in economic stagnation -- while other countries spend beyond their limits and enjoy economic growth. Doesn't mean that the "tsunami" isn't out there someplace. Must be a balance somewhere.
http://www.freerepublic.com/focus/f-news/1350998/posts
Pace of US economic growth bolstered by stronger exports
AFP ^ | 2/25/2005