There are only two solutions Hobbers, inflate or default. Default offers the best solution but would cause the greatest disruption to the monetary system with the real impact not knowable or how long the recovery due to the shear size of the built up probelms, for sure it would mean a huge drop in the standard of living of the defaulting nations. Inflate offers the most expedient solution with the fewest short term problems but easily the most severe long term issues that will just make things worse down the road unless the political will is mustered to make huge self determined cuts to the standard of living and create a growth agenda unlike now.

A growth agenda must including massive generation and deployment of capital pools with no government involvement, large spending cuts by government starting with entitlements and the military, a comprehensive energy policy that doesn't rely on government support for survival like the present stupidity of ethanol in the US (Brazil has it right on ethanol), real financial regulation unlike the crap that was just passed, and reduction of government regulation on small business.

I haven't seen any indication the leadership exists for a true growth agenda in the US in a couple of decades and now the fact the US is by far the largest debtor nation with huge built in structural fiscal issues means real leadership is needed more than ever. Where are the great men and women of yesteryears and why does the lowest common denominator seem to rise to the top so easily, I site both Bush and Obama as proof.