That is one thing I don't understand about this whole fiasco.

He advocates spending and stimulus to get out of the this. He says "And both the United States and Europe are well on their way toward Japan-style deflationary traps".

But didn't Japan spend a shitload of money during the 90ies (making their debt 200% of GDP)? Don't they now sit with that debt, a declining population and still no growth?

I'm not an economic expert and maybe I just have a biased for government/personal austerity and saving.