re: CEOs' thoughts on the debt crisis

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IMO there isn't much you can do to prepare for it for the normal person unless you are a day trader who oversees market trends daily.

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Don't agree on this, preparing for inflation as a day trader is almost impossible. Technical analysis depends on flows, levels, and patterns. Its easier to prepare as a long-term investor because a lot of the true inflation protection instruments have wider bid/ask spreads. TIPS have their own issues due to some of the assumptions in CPI and how they trade (below).

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Most smart traders these days trade the futures market(commodities/currencies/financials) because you base decisions on supply and demand(technical analysis)

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If you looked at forward curves since 2009, you'd have seen very high expected inflation and interest rates. Implied rates have been higher than actual for 3 straight years. The smart investors have been making a killing writing pay-fixed swaptions, writing inflation caps, entering in received-fixed interest rate swaps, etc.. TIPS are priced on breakeven rates, so basically expectations for inflation rather than inflation. So you could have inflation but still a negative return.

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That said...Europe is putting the world economy in a tough position. I think it all goes back to Fiat money IMO because there is no intrinsic value(gold silver)to back up the currencies(US/Euro)

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I wouldn't say fiat is the reason for Europe's woes. I think part of that goes back to the dynamics of European working culture versus benefits. Over half of Greece is employed by the government, France had violent protests from raising the retirement age to 62, Spanish general working hours have a 3 hour siesta (lucky bastards), and each of these countries have very generous entitlement programs. Fiat is a way they've been able to mask this by promoting tourism and attracting commerce by weakening their currency. That went away when they didn't own their printing press. These are just a few examples, Europe's problems are plenty.

If inflation is your thesis, this is a good way for the average person to save. Have to open a Treasury Direct Account:

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I Bonds are a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation. Once sold and redeemed solely as a paper security, they’re now also available in electronic form and in paper form through your IRS tax refund. As a TreasuryDirect account holder, you can buy, manage, and redeem I Bonds online. A new program called SmartExchangeSM allows TreasuryDirect account owners to convert their Series E, EE, and I paper savings bonds to electronic securities in a special Conversion Linked Account within their online account. Buying I Bonds through TreasuryDirect: Sold at face value; you pay $50 for a $50 bond.

Purchased in amounts of $25 or more, to the penny. $10,000 maximum purchase in one calendar year. Issued electronically to your designated account. Buying Paper I Bonds: Available only through your IRS tax refund Sold at face value; i.e., you pay $50 for a $50 bond. Purchased in denominations of $50, $75, $100, $200, $500, $1,000, and $5,000. $5,000 maximum purchase in one calendar year. Issued as paper bond certificates. If you redeem I Bonds within the first 5 years, you'll forfeit the 3 most recent months' interest; after 5 years, you won't be penalized.

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US Treasury

I bonds still have the same problems with CPI, although CPI-U is better than CPI. You still have to deal with the substitution bias and hedonic regressions. I still don't know how people can consider the Series EE inflation protection post 2005, they don't index inflation at all.

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Traditional asset allocation models can no longer provide the same returns they did in a higher rate environment

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I think this is more worrisome than inflation. Most people aren't concerned about inflation as long as their real rates are positive. Unfortunatley you have negative real rates pretty far up the curve due to financial repression. Interest rates this low really push most people out of your typical asset allocation. In the past the most risk averse investors bought treasuries and sat on them. Now I'd argue if you're in a range bound interest rate environment you might as well sit on agency mortgages to pick up spread to treasuries as long as the range bound environment cuts out your prepayment and extension risk. Also, hope the government doesn't come out with another Refi program announcement that destroys the 5-6% coupon stacks.

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those who are overpaid for what they do and won't get raises comensurate to the levels of inflation.

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