I remember reading that taking on debt is deflationary in the long term. Short term it is inflationary due to the increase in money supply, but every dollar printed today will have to be paid back with the principle $1 plus interest in the future, therefore taking money out of the supply. The chinese are financing a majority of our debt, and all of this money plus interest will end up in their economy in the near future.
In the past inflating our way out of a financial mess has worked. Prices on everything rise, hosuing prices rise (getting people from being upside down in their mortgages), wages increase, stock market goes up, commodities go up etc etc. If you want to protect your money invest in commodities or commodity based stocks. I invested in natural gas and bought gold and platinum a couple months ago for this exact reason. You could argue that real estate would be a solid investment right now as well.