devalue the dollar

A friend came to me today with an idea that would solve much of the mortgage foreclosure problem and also allow us to pay off our debt with cheap dollars: devalue the dollar. When one thinks of it, it is an easy chip at a complicated problem, perhaps not a cure but certainly medicine. First, the values of homes would be increased by the percentage of devaluation: i.e. a $100,000 home would be theoretically worth $200,000 if the dollar were devalued by 50% (I'm not advocating a particular devaluation, by the way, just the thought process). Further, the debts would be repaid with "cheap dollars" as they are in times of inflation. It's a two sided sword that cuts in favor of the most oppressed of our citizenry. What do you think?