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the main idea right now seems to be massive amounts of debt, which can get very ugly in the long runThe economy, unlike one's personal finances, is a circle. Unless the Europeans buy abroad, all that money is going to stay in Europe, circulating and stimulating the economy.
Even if it's "only" arms, spending it to maintain industry is way better than many alternatives. Manufacturing infrastructure and lots of skilled jobs and workers, sounds good to me to have.
"Debt" is just a number, and if you are in a strong enough position you can always change policies around the purely virtual "money".
Finance/money is supposed to be the virtual control system, and the real world thing it is supposed to help to steer is everything real and what we actually care about. In all other areas we would never accept that the control system becomes the target!! The target is always the real thing, and we will adjust the control system to achieve the desired outcomes.
Not so with finance! It has taken on a life of its own, and the vast majority of people will gladly and unthinkingly subordinate the real world to its whims. Something that makes at least a little bit of sense for the individual makes no sense for the economy though.
We have people in charge who know all and care about the control system first of all, the real world outcomes be damned. If the control system says we need high unemployment and homelessness and less high paying jobs there is nothing we can do, because the purely virtual human-invented finance system is the god. But hey, religion has been on the decline for a long time at least in the modern world, right (/s)?
> which can get very ugly in the long run
Only when the people in charge think like described.