but with fractional banking and the like the amount of money actually in the system is always increasing, so the inflation isn't actually "destroying" anything, it's basically just the equivalent to a flat tax that goes out to banks to help fund loans
At one point I had the impression that inflation is supposed to encourage spending, but thinking about it, it probably punishes the poor (who have pretty much no savings) more than anything
if you have a fixed money supply, even with fractional banking, the amount of money in the system is limited; and to push the model further, even if you had a 0% reserve requirement, in the long run defaults and amortization of loans (deflationary) would balance out new lending (inflationary).
Ever wonder why the population is overleveraged and over-stressed about loans and what not? It's because the system needs people to go into debt to continue function. It's legalized, voluntary, fractional slavery, but the system wants you hand over ownership of your labor to someone else.
At one point I had the impression that inflation is supposed to encourage spending, but thinking about it, it probably punishes the poor (who have pretty much no savings) more than anything