(This is not your typical Ackerman/ Mish deflation argument)
Armstrong points out the the US is not the worst debt offender (although he does leave out unfunded liabilities in his analysis).
He also correctly states that whether the final outcome is hyperinflation or a massive deflationary depression will be determined by the response to the crisis- whether governments continue to print, or turn to severe austerity ala Greece.
Armstrong believes that sovereign debt will default prior to the dollar collapsing into hyperinflation- however he correctly understands that either scenario is positive for gold as a massive deflation will result in all assets deflating vs. gold.
A must read to challenge your thoughts and perspective with an alternative but highly valid viewpoint.
Aug.16.2011
Big Money and the Economic Depression 
5 pages (Note, this was written yesterday, the paper is dated Aug 16, 1999, but this is a current piece)