The money is debt argument is a fallacy. The argument that you can't have money without debt is also a fallacy.
The US government can wipe off all the debt on the books overnight if it wishes to. It's called defaulting or restructuring the debt. A 100% default is when you just don't pay anything back at all, a restructuring is where both parties agree that you cannot fully pay back the debt, but you try to pay back as much as possible, say fifty cents on the dollar.
To actually pay back the debt is politically untenable because taxes would have to be raised to 100% and the army would have to come in and force everyone to work as slaves in order to pay off foreign bankers. They are trying to do that now in Europe and it's not working out so well. I hear the government in the Netherlands is resigning to the Queen because they don't want to implement the austerity.
Europe will fall apart before their debt is repaid, and there is a good chance that the US will far apart before we repay ours. I think with Obama or Romney in office there is a good chance the US will break apart into sovereign states. Ron Paul, or another minarchist is our only hope of keeping the union together.
If US states started enacting laws to secede and create their own currencies, I don't know if Obama or Romney would follow through with Lincoln's insanity to keep the union together and start killing off Americans in order to force them to use Federal Reserve notes. Perhaps they would, what do you think?