"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth."
–John Maynard Keynes
The Economic Consequences of the Peace, 1919. pp. 235-248.
The quote above is the classic Keynes statement on inflation and the activities of central banks.
Was he right? Is the impact of Fed largesse improving wealth and smoothed business cycles, or are we seeing a taking of citizenry wealth, with well defined winners and losers?
What say ye?