>>>It's much, much worse.
>
>Only because you allow it to be. When you owe, inflation is your friend. ;-)

Lived through this kind of 'remedy' back in 80ies and later in 90ties. Inflation is nobody's friend !
Think switching earnings of 100k/year in today's dollars into 100 000 (or billions) of deutchemarks of 1923 (and everything that came thereafter).
http://en.wikipedia.org/wiki/Hyperinflation

What you are implying is dangerous macroeconomic gamble which btw is what they are already doing with QE1 , QE2 and
soon enough QE3. Results we got so far from that, is global increase in commodity prices (food prices > normal => recent uprisings)
and almost negligible economic 'recovery'. There is NO real solution to debt problem other then making money and repaying it.
What they are doing so far with QEs (money printing) is if you ask me, like rocking the boat to try get the water out...