This is written as if even top bankers don't understand the basics of monetary policy.

You make a great point. The thing is that I doubt most people think long-term enough to contemplate that problem. Unless of course it is those in the welfare trap. They seem to be pretty cognizant of their situation and how to manipulate it to their advantage - at the expense of the rest of us. :(

Good thoughts.

The only thing I could add for your consideration is the fact that sooner or later the individual looking at their checkbook, is moved into a higher tax rate with them losing and the government winning...again, thanks to our disgusting progressive tax.

"I used to buy into the idea that inflation was good for borrowers but I don't believe that to be true anymore. I think all people still lose"

Both are actually true. To the individual who only sees their checkbook, inflation is good because it means their debts are worth less. Society as a whole loses, however. You are absolutely correct. Only the government wins because their debts get devalued at the expense of the taxpayer. Even banks get hosed, because their deposits are devalued and so are their returns on loans.

"property values increase"

Yes. It's all part of the lie. The taxpayer - again - get hosed by being forced to pay higher property taxes even though nothing has changed on the part of the individual. It's one of the reasons I'm for setting property tax values as fixed values according to the purchase price of the home. They don't change after that. Period. This incentivizes people to stay in their homes, it doesn't penalize retirees, and it simplifies the accounting for everyone. In addition, it forces local governments to work to counteract inflation AND to keep prices stable. They can't just tell their tax assessors to arbitrarily alter the taxable value of homes to suit their budgetary decisions.

I used to buy into the idea that inflation was good for borrowers but I don't believe that to be true anymore. I think all people still lose and the benefactors to inflation being mostly the government. Banks also get some benefit in they are getting X percentage on a larger dollar loan but some of that goes to pay more taxes.

The thing I recently realized is when inflation occurs, property values increase, which seems like a good thing for the borrower and it is short term. But when property is sold, capital gains taxes must be paid on, inflation. That is the inflated value of the property and it's improvements and then death taxes that eat up most of the increase in value. Maybe I have missed something in my thought process but in the end it seems the only real beneficiary of inflation is government.

Of course. Whenever one can create money with the stroke of a pen, one can also create inflation. And inflation benefits borrowers by devaluing their loans while it hurts capital holders. And there is currently no bigger debtor on the planet than the US government.

IMHO, governments cause inflation as well as anyone else who increases wages without in increase in productivity. Of course there is a little more to it than this but government annual cost of living salary increases are a huge contributor to inflation. Governments are also big winners when inflation occurs. The people are the big losers. They give more of their money away in taxes and the value of the dollar is reduced. Of course pumping dollars into the economy is a big factor as well.