Read the whole thing. Here's is the wrap-up:
The unavoidable Depression will occur regardless of their actions. The only issue is whether it is triggered by a massive inflation or a debt collapse. An immediate debt collapse would be less painful for the citizens than hyperinflation. In a debt collapse, balance sheets are cleansed and the economy is purged of much of the mal-investment and mis-allocation that has built up over the last couple of decades. The liability side of balance sheets shrinks to the underlying value of the assets.
In a hyperinflation, savings and fixed incomes are destroyed. That is, much of the assets of prudent individuals is destroyed. We would enter the Depression later, but most of us would do so without any nest egg which would have been demolished by inflation. Further, the mal-investments and mis-allocations go on longer, making the pain and recovery from the Depression that occurs that much harder.