Prices are going up and wages are going nowhere (hello 70's?). So what to do about inflation? Typically, you raise interest rates to combat inflation, but that will only exacerbate the debt crisis -- we're already running trillion dollar deficits and an uptick in interest rates will only make things worse. And if you think home prices suck right now, how much do you think climbing interest rates are going to help?
Maybe things will go your way and social security will be "saved" as it keeps paying that $1200 each month. Your delight may be short lived though when you find out that $1200 doesn't buy nearly as much as it used to, your house is worth even less than it is now, and... dare we bring up that nest egg that you were promised would bring a comfortable retirement over decades of compound interest?
I wouldn't want to be Obama right now. Hell, I wouldn't want to be Obama's replacement, either.