Rich countries don't pay off debt, they inflate it away. One of the main reason for European countries to adopt the euro was to get a piece of the reserve currency pie, allowing more debt to be eliminated without severe economic repercussions. Unfortunately, they hit a road block in the Mediterranean, where, due to poor fiscal management, more inflation would lead to economic disasters threatening the stability of the euro. Meanwhile, the U.S. cannot afford much inflation at the moment, since it would threaten the position of the dollar as reserve currency in favour of the euro. Worse yet, they have their biggest creditor breathing in their neck with increasing economic and military power, who would not be pleased by inflationary measures.

Thus begins the biggest poker game of all, in which the U.S. suddenly cares about military spending and is trying to get Europe to spend itself into an inflationary cycle. Meanwhile, Europe is trying to prevent that through severe budget cuts. Ultimately though, neither can get rid of their debt without inflation so both taking inflationary measures is the only logical outcome. China and other countries heavily invested in euros (e.g., Russia) and dollars (e.g., Japan) will not be pleased, but ultimately their wealth is heavily dependent on the economic well-being of their biggest lenders and trading partners. There will be few winners in this game.