Everyone loves inflation. This is why Central Banks are deathly afraid of deflation. I used to think that the FED and its expanding balance sheet was the main driver of inflation. But really it is the banks and the creation of money through fractional reserve banking. Every time a person buys a new home it creates a bunch of money that didn't exist until closing.and then poof, big checks for everyone involved. Well really all of those involved who make commissions. This is the driver of credit expansion cycles. It continues just fine until eventually the incomes can't keep up with ever expanding interest payments.
I think you are kind of a lovable crank, @ArgentCy, sort of in the Ron Paul mold, but many of your posts remind me of this lovely David Romer quote...
"Everything reminds Milton Friedman of the money supply. Everything reminds me of sex, but I don't put that in my textbooks."
Your point about using monetary policy to fight against rising real interest rates temporarily and how easy credit leads to "mal-investment" in nonproductive assets in the Von Mises sense is well-met, however. I just think the market catches up with you eventually, which you seem to agree with. The Fed ran easy credit in the 1990s and early 2000s, pumped up a stock market and housing market bubble in the process in the name of boosting the economy, and the whole thing caught up with them circa 2008. I am sure you would say we are in a similar cycle now -- re-pumping the bubbles and engendering an even harsher reckoning.