Can you expand on this?

John Mauldin spends several chapters on Hyperinflation in Endgame. The statistically-significant phrase you're looking for is "foreign denominated debt."

"In 1993 Brazilian inflation was roughly 2,000%. Only four years later, in 1997 it was 7%. Almost as if by magic, the debt disappeared. Imagine if the US increased its money supply which is currently $900 billion by a factor of 10,000 times as Brazil's did between 1991 and 1996. We would have 9 quadrillion USD on the Fed's balance sheet. That is a lot of zeros. It would also mean that our current debt of thirteen trillion would be chump change. A critic of this strategy for getting rid of our debt could point out that no one would lend to us again if we did that. Hardly. Investors, sadly, have very short memories. Markets always forgive default and inflation. Just look at Brazil, Bolivia, and Russia today. Foreigners are delighted to invest in these countries."

http://news.goldseek.com/MillenniumWaveAdvisors/1318786155.p... (a leak from Mauldin Economics, which requires registration)

As far as your edits, it's rare that I like reading David Frum, but you're right: he makes a case.