One way out of this dire situation, is to simply print loadsa-money and stoke inflation in order to cancel out all our debt. This will stoke inflation, but that is the whole point - ten years at 15% inflation will cancel out the government's debt and we can start again. In which case, creating money for vast projects like this can be beneficial.
And wipe out everyone's savings? You're a complete genius! Are you in fact Gordon Brown?