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I see how it leads to unnecessary consumption. Now that you mention it, that seems like a no brainer.
I do not see how it leads to someone being able to skim value away from the productive. Can you elaborate?
In order for inflation to occur new currency (money or credit) needs to be introduced into the economy. The introduction of new currency devalues each unit proportionally but the first people who get to spend it do so before the devaluation manifests. So the way the monetary system works now people who have access to credit creation get to enjoy privileges indistinguishable from those of a counterfeiter - the ability to consume value produced by other people without any need to produce an equivalent amount of value first for someone else first. I do not see how it leads to someone being able to skim value away from the productive. Can you elaborate?
