Sure, the housing bubble burst, that caused a massive financial crisis because banks had heinously overexposed themselves to unsustainable risk, credit stopped, people and companies stop spending. Recession.
Government spending is not trying to reinflate a bubble. It is ensuring that the economy returns to producing somewhere near its capacity. The important number to look at is the cost of debt repayment as a proportion of GDP. While borrowing is quite high at the moment, interest rates are very low, so the cost of servicing the debt is not prohibitive. And if the economy returns to full production soon (eg, those unemployed return to employment), we'll see a quick growth in GDP so the ratio of debt to GDP will quickly reduce (see what happened to the massive public debt after WWII).
The whole point of fluctuating exchange rates are to stimulate production where necessary - a weak dollar would be very good for the economy right now.
And to answer your question, can I afford a $130k debt? Well, seeing interest rates are around 1-2%, I could easily pay off the required interest. But public debt and personal debt are different - I dont personally owe a portion of the public debt and neither do you. Start worrying about real things like lack of public services and unemployment rather than macro-economic measures like public debt.