In a massive inflationary cycle, being in debt before the cycle begins is actually bennificial. You will be paying your debt back with dollars worth less. I am debt free, but that is the thesis.
The U.S., U.K, Spain, Italy - screwed. At least Spaniards and Italians have been there, done that. Inflate or die is back in vogue, except if you inflate prices of necessities and finished goods in the U.S. under a scenario of stagnant or falling wages and rising unemployment, you will send the whole shit into a tailspin. China is picking up excess manufacturing capacity at prices we can't and won't compete with, and India is starting to dominate IT and IP and services of just about everything that can be outsourced at prices we can't compete with. And those two nations have 2.3 billion people to feed their mills forever...
12T / 300mm people in the US is 40 grand per. Half the people don't pay taxes so double that for "suckers" who earn money. 80 grand for you, 80 grand for your spouse, 80 grand for each of your kids. That's what you owe. Not counting all the unfunded social security/medicare liabilities.
Shadowstats has a number near $93.5T. Check out Financial Sense's audio on it over the weekend. http://www.netcastdaily.com/broadcast/fsn2009-0502-3a.asx
US. debt levels make deflation unacceptable. If the currency becomes destabilized and hyperinflation occurs, what would be the investable assets? Hard assets: metals, energy, real estate? Stocks? Guns and Ammo? Hyperinflation increases the velocity of money.