gistfile1.txt

darkside:Desktop tim$ python uh2.py 
outer
	inner
	inner
	inner
outer
	inner
	inner
	inner
outer
	inner
	inner
	inner

***

outer
	inner
	inner
	inner
outer
	inner
	inner
	inner
outer
	inner
	inner
	inner

*****

outer
	inner
	inner
	inner
outer
	inner
	inner
	inner
outer
	inner
	inner
	inner

uh.py

#!/usr/bin/python

i = 0
while True:
    j = 0
    print 'outer'
    while True:
        print '\tinner'
        j += 1
        if j == 3: break
    i += 1
    if i == 3: break

print '\n***\n'

i = 0
while True:
    j = 0
    print 'outer'
    while True:
        try:
            print '\tinner'
            j += 1
            if j == 3: raise Exception('lolz')
        except Exception, e:
            break
    i += 1
    if i == 3: break

print '\n*****\n'

i = 0
while True:
    j = 0
    print 'outer'
    try:
        while True:
            print '\tinner'
            j += 1
            if j == 3: raise Exception('lulzier')
    except Exception, e:
        pass
    i += 1
    if i == 3: break