It can be, no doubt about it.
No, it simply allows debtors to escape their obligations. This makes people less willing to engage in collaborative activity. I.E. economic contraction. A destruction, not creation of wealth.
I would argue that we've already created a spectacular amount of money. The supply has already been inflated but the Fed could not control where it went.
The value of real estate has already been distorted by the runaway creation of dollars, the GSE money pumps, and artificial tax incentives.
Even if they fire up the printing presses there is no guarantee that they can stop deflation. Japan has been printing money like mad, but they still haven't managed to increase the aggregate money supply.