Michael Kinsley published an article in the Atlantic Monthly. http://www.theatlantic.com/magazine/archive/2010/03/my-inflation-nightmare/7995/
The article makes a number of good points. First, fiat money is not real. It exists only in the imagination of the user. Should that imagination fail, as it nearly did in 1980, then fiat money becomes valueless.
A second point is...if government can generate inflation, it can be profitable. In 1979, the US government ran a $40 billion deficit. At the end of the year, the national debt was $830 billion. However, that debt, because of the 13% inflation that year was only "worth" $732 billion. $98 billion minus $40 billion yields a tidy $48 billion profit.
The $48 billion did not come out of thin air. It was stolen from the general public and future generations in the form of price inflation. This is a very good form of theft, because it is so nicely separated from the crime in time and place. Do price comparisons of anything...1980 and now.
What can go wrong? Nothing apparently. All of our major prognosticators are projecting 2% inflation as far as the eye can see. Do you believe it? Michael Kinsley and the Tea Party do not. Strange bedfellows. Vast numbers of the middle class have stood still or regressed economically for the past 30 years. All the while, the economy has put in good growth. Now we are asking for great sacrifice by the middle class. Really, what can go wrong?
The need for inflation is desperate. Governments worldwide need it, home owners need it, all debtors need it. If the public would just accept stable wages, benefits, and soaring prices (read...collapse in the standard of living), there is light at the end of the tunnel. If they don't, then many nation states will collapse, and we will have created a receipe for global violence.