There is no debt in the classic sense. Since currency has no value, there is no actual debt. When currency is tied directly to gold, then there is debt.
Having just pointed that out, us deplorables do incur debt because we are the slave class. I freed myself from debt at the last possible moment. I believe corporations are going to absolve people's old debt by UBI. Then, after they've done that, start taking away benefits. The population will be trapped.
Yes, I agree (regarding the intrinsic value of currency). Decoupling the US dollar from the gold standard was Nixon's real sin IMO.
Nevertheless, as you suggest, the population at large does value those pieces of paper, and they are exchangeable for goods and services - at the moment. The US has incurred a huge debt in that currency, and its payback will occur. Whether it be through taxation or devaluation (the latter more likely IMO), we'll be impoverished when it happens.
I believe the best hedge against this is to minimize the holding of dollars in favor of more tangible or inflation hedged assets, minimize taxable income, and learn to add value directly (as in make your own stuff and grow your own food) and not as an employee.
Edit: missed a word.
Edit2: clarified "add value directly."
Clearly, you get it. Correct, devaluation works wonders. People have also become so used to federal reserve notes, they think that currency is stable and everything else jumps up and down around it. Nothing could be further from the truth.
Here's a thought experiment. Imagine the real cost of gold. You do this by imagining how much real gold the US has. Then you imagine how much US currency there is. You can only imagine this because there is no way to know either of these variables. Now I ask a simple question: can gold be $1,800/oz? If you think not, what would you guess the real rate should be? I'm thinking north of $500K/oz.
Thank you. Regarding the real cost of gold in $US, I can't say for sure as it's so murky with all the games played and sleights of hand (such as the possible phantom nature of GLD holdings). However, I do price commodities and mature goods in ounces of gold to determine their true changes in value, determining real rates of inflation over the long term.
Edit: added a word.
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