It isn't unusual to pay for wars using debt.
The development of debt markets was one way that GB defeated Napoleon.
The US and UK massively increased their debts during WW2.
These ended up being supportable as a proportion of GDP. Indeed, the 1950s was a glorious period in US economic history, during which time debt diminished very considerably asa proportion of GDP.
The problems we are having now were initiated by the mistreatment of private debts by the investment banks.
You seem to want to blame the central bank in current circumstances for problems created by the lack of regulation in the property market. Looks to me like they have done a decent job of preventing a depression, with little help from Congress.
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