I think the point I trying to make to is that deficits should not be anything to worry about - they are just a balancing item that reflects normal monetary operations as desired by the population. As long as the country remains capable of producing useful stuff, everything is going to be fine, since that's what _actually_ matters.
Yes, in a previous comment you said this:
> If the private sector wishes to save and import, then if the government wish to not starve the economy of money, they necessarily have to run a deficit
My point is that the private sector saving does not itself starve the economy of money. Savings is generally done into banks, which then choose where to invest that money onwards. What makes it possible to starve the economy of money from this is precisely that the government takes loans from a private sector looking to save - either through banks that buy Treasuries, or even Treasuries bought directly - which forms [part of what is currently considered] the deficit.
> I think the point I trying to make to is that deficits should not be anything to worry about - they are just a balancing item that reflects normal monetary operations as desired by the population
My original argument had an even stronger implicit point - being able to run a deficit without the consequence of significant price inflation is an extremely beneficial situation. It implies an ever growing value of the ecosystem of that currency, sustaining the new money. We can certainly debate how that value should be realized and what it should be spent on. But pulling back from the world stands to destroy that value creation.
I'm not sure if in your final point your implying something about the quantity theory of money, which is something I reject (flows being the important measure). Perhaps you can clarify what you mean by destroying the value creation? Is this a statement about closed economies being less valuable than open ones?
I tried to meet you there with the terminology of the Keynes quote and you argued definitions rather than address the translated point.
In the general framework you're pushing, if the government does not run a deficit by being a place to park money, then that money remains in the economy regardless - private savings is generally in terms of loans to banks which then propagate the money elsewhere, not simply holding vast quantities of Federal Reserve Notes. (And frankly FRNs should really be considered part of the debt/deficit too)