Two paragraphs from a five page word document directly from Fekete February 10, 2009:

Liquidation value

Perpetual debt is more than toxic. It behaves like nuclear fuel: once the threshold is reached and exceeded, chain reaction sets in and the monetary system explodes. To understand the dynamics, we need to refer to the liquidation value of perpetual debt. This is a concept that, for obvious reasons, is not recognized by mainstream economists. If it were, they would be far more careful with their recommendation of unlimited government spending as panacea for all economic ills. Recognized or not, the liquidation value of debt acts as a danger sign warning policy-makers that the threshold is approached and the creation of more debt will expose the economy to unacceptable dangers, in particular, that of runaway inflation.

Burden of debt

The liquidation value of debt is the amount that would liquidate it here and now. It obviously depends on the rate of interest. The liquidation value of total debt is inversely proportional to the prevailing rate of interest. In particular, halving the rate of interest by the central bank is equivalent to doubling the liquidation value of total debt.

I have been writing about this Iron Law of the Burden of the Debt for many a year and have met with an almost total lack of understanding, judging by the feedback from readers. The lack is due to the reluctance of the mind to admit that cutting interest rates increases the burden of debt contracted in the past, because it contradicts one’s intuitive expectation that at the same time it should decrease the burden of debt to be contracted in the future. To be sure, cutting interest rates does increase the burden of debt contracted in the past because liquidation value is calculated by capitalizing the stream of future interest payments. Since at the lower rate the present value of that stream is smaller, a shortfall is created that has to be amortized upon liquidation.

Fekete is mentioned on pages 5,6,13, & 18 of this thread.