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RE: The USD is like a fence that keeps debt-slaves inside a labor camp: It "must" not collapse
Yes, the infamous inflate away the debt. The U.S. has essentially tried this but, uhm..not working. Wages have barley moved and CPI is bumping along. The only thing that Fed policies have done is inflate the equity markets and aid the increase in home prices.
Inflating out of debt has been a failed policy by so many countries. Brazil was the only one to really pull it of in the late 80s-early 90s. by causing hyperinflation with the mass creation of currency. It was an ugly time for them, but it sort of worked. Sadly they are right back in the same place financially.
There is no other viable policy really in the context of the existing system.
From the moment the money is issued as debt it requires X (the money) + interest. So you need more than X. But there is no money supply in the market larger than X, so the debt is unserviceable. Thus you need new debt.
Even if you tax everyone, even if you have zero government spending, you cannot repay the debt by austerity because debt equals money and the money in circulation, deposits, etc, is less than the total amount of debt.
The only trick that would actually work is the reintroduction of gold/silver as a monetary medium. Then have gold/silver rise in value (due to their monetary demand) and this gold/silver bubble will then be able to repay the debts. I can't see any other way out of this, that does not involve a "reset". It's either a reset or a gold remonetization.
Inflating the debt is viable in the short-mid-term, but non-viable in the very long term. Austerity is not viable because it's just drying up liquidity and it can never repay the debt (total money < total debt), plus it shrinks GDP fast (escalating gdp-to-debt ratios, despite debt repayments).