To bring up just a few big ones:

Printing money and low interest rate policy of the Fed influences many things other than the simplistic lower interest rate=more spending=more growth formula commonly preached.

1) it hurts people with savings. A good example is all the retirees who have saved their whole life and now can't survive on the 1% returns their savings are generating. The Fed is supposedly helping people and business who want to borrow and can do so at low interest rates.. but that does not trickle back to pensioners who should be earning more on their capital if they were not competing with the Fed.

2) monetary expansion stimulates the economy unequally across industries and geographic regions. In the models of the academic economic departments, monetary expansion may apply equally to an economy as a whole.. In the real world short run it is a transfer of wealth from one group (wage earners, people who hold cash or low yield bonds) to another group (banks, government contractors, rich people with lots of land and stocks). Some people benefit from low interest rates and new money, but many people are hurt by those same policies.

There are quite a few other issues that Austrians seems to be correct on, but these seem to be two of the most obvious to me.

Stopped reading right there. Seriously, if you want to frame Austrians as evil at least try a little harder to be subtle about it.

The economy is a balance between things that create value and those that destroy it. In a healthy economy more value is created than destroyed so as long as the 'savings' is close to the amount of new wealth created there is no problem. The problem is when people try to store more value than than the genuine amount of new wealth created. Often it's as simple as a bubble created by over-investment followed by a crash back to actual value. However, the special case of people 'investing' in cash cash does strange things which are directly harmful even without a crash.

What about if China suddenly asked for something in exchange for the tons of american paper currency they have accumulated? It is unlikely anytime soon, but they will only take it as long as it has value. So the more you inflate, the more you have to send to China to maintain the American lifestyle.

Our economy is becoming less rugged over time. A large shock becomes more and more likely to significantly disrupt our system. There is no redundancy or backup operations. Our cpu core's are all at 120% load.

<sarc>Also, its a good thing that stuff like population pressure and infectious diseases are a thing of the past (two of histories best methods for shocking a political/economic systems). You know, because the global population is under control and our climate is capable of withstanding everything we throw at it with complete aplomb. </sarc>

However when everything is going well, Keynesianism works well. I will give it that.

http://en.wikipedia.org/wiki/Long_Depression#Interpretations

Consistently low unemployment, improving productivity, constantly increasing real value of wages, corporations struggling to earn a profit. A Currency that doesn't constantly lose value seems like a not-so-terrible proposition. God forbid, people end up having savings to live from.

You mean they have to spend more than they can afford? Otherwise, what exactly do you mean by they have to spend? Obviously they have to buy a house, a car, a phone, a computer, electricity, etc. I would think most people save what is left over if you like.