So basically, if I lived in Venezuela, and had 100K Bolivars student debt, it would suddenly be worth 32% less ? Damn.. I would be so happy.

Paycheck should go up as well (not instantly of course).
People with net positive position in currency will lose, people with debt will profit from the devaluation.
I am ignoring any effect this has on the economy for simplicity's sake.

Currency de-valuation means de-valued relative to other currencies. It doesn't affect people who deal only in that currency beyond the price of imports going up.

Ok, but because of a worsening economy, paychecks would probably have gone down nominally (and/or more unemployment in the short run) without money printing.

It's funny, because a big airline company in Norway recently claimed they were going out of business unless all employees took a wage cut. After the cuts were done, the management awarded themselves bonuses, pointed nose to the rest of the good people and said: Fooled ya! There wasn't really any eminent crisis.

i think you've been hoodwinked into buying this progaganda.

no doubt a recession/depression would be a downer for a couple of years but then we'd come out of it.  look at the recession of 1921 when the Fed did not intervene.  getting rid of the big banks wouldn't hurt the economy in the long run at all i say.  right now, they are just a bunch of parasites on the rest of us real wealth producers but that game is running out.

what do they say when you suspect there are shenanigans going on?  "look where the money goes".  and right now there is an enormous tax applied to the non financial sector to prop up the large financial bonuses of the bankers.  there is SO MUCH evidence to support this.  it's everywhere you look.  they don't even bother to hide it any more otherwise we could call them liars everyday.

back in 2009 there was alot of honest money, including mine, waiting on the sidelines to scoop up these bad assets at fair market value.  the Fed prevented that from happening.  we had a good chance to clear the markets, get rid of the dredge, and move those assets into more efficient, more honest hands.   instead, Bernanke/Obama saddles America with a doubling of the national debt in just 4 yrs, an explosion of the Feds balance sheet from $800B to >$3T now.  we abandon Federal budget accounting and we decide to mark to myth debt assets.  we abandon the rule of law and no one gets punished for wiping trillions of wealth of average ppls balance sheets.  this is unprecedented.  most of the house buying that has happened since has gone into the hands of banks and hedge funds, not working households.  just how sustainable and long lasting is that?  answer:  its not.  they either dump at the first profitable benchmark they set or they are forced to dump in an escalating downward spiral which in the end means that those bad loans will get dumped onto the taxpayer once again.

how do i know that this is non-sustaining?  look at Europe.  eventually the debt payments catch up to the ability to service that debt.  if incomes across America were going up across the board at the same rate, we'd have a chance.  if the average American were allowed to go to the Fed discount window and borrow at 0%, you'd have a point.  if the average American were allowed to dump their bad mortgages onto the backs of the collective taxpayers like the banks do, then i'd say ok.  but that's not how the system works.  this is WHY you see income disparity levels never seen since 1929 just before the Great Depression.

the debt NEVER disappears and the debasing NEVER stops.  that's the problem.

I run http://bitcoinvenezuela.com I'm venezuelan and living in Spain.

On the bright side that is still way above fundamental value.

This doesn't actually matter very much.  Here is a graph of the black market value of the Argentine Peso vs the official government rate:

http://www.ambito.com/economia/mercados/dolar.asp

Fun fact:  it was at 6.5 in december, and 5.5 in june.

All that happens when they "officially" raise the value is they bring it more in line with what it's actually trading at.  No one uses the official exchange rates of currencies that are not freely convertible.