There are 2 debt problems
1/ private personal debt which mainly affects the Anglo Saxon economies ie UK and USA and this we can blame in the ghastly greedy bankers. They were imprudently lending huge sums of money to people who they knew did not have a hope in hell of maintaining repayments. This for short term profit/bonuses. This caused the original banking crisis.
2/ Government debt, for which it has to be said, when you get down to it, the problem is democracy. Too many european governments, our last lot included,borrowed too much money, why?, In an attempt to sweeten the electorate and garner votes in future elections. This money has to be paid back with interest to banks from which it was borrowed in the form of government bonds or the banks go bust. Then all the domino,s start falling. These Greek, Irish, Portugese,Spanish, Italian and lets face it the British governments know what the solution is. But they do not know how to get re elected after they implement it.
The only answer is severe austerity. Raise taxes, cut wages, cut benefits to a subsistance level. Stop profligate spending, etc. etc. till all our debts are honoured and then with lesson learned start again. But we know none of our democratic parties have the balls to do what is neccessary.
(Just thinking out loud here, I am a democrat) Therefore we need some hard but fair benevolant dictator to take reins and see us through this (Im with Joe here)very scary time.