Default or Debase

I keep looking for something I can't get
Broken hearts lie all around me
And I don't see an easy way to get out of this
--Cutting Crew

As stress on sovereign debt increases worldwide, pundits maintain that the US will never default on its debt. The US dollar is the world's reserve currency, they argue. Besides, we could always print more dollars if we get hard up.

But isn't currency debasement a form of default? Paying back creditors with worthless currency seems no different from reneging on payments. Plus it crushes non creditors holding USD.

Seems like two paths to the same end: not upholding your obligations as a borrower.

position in USD