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remember, the central heart does not care about money since it can create money out of thin air. it cares about flow and distribution the flow of money is what produces meaningful activity just like the flow of water, not the volume, produces energy in a turbine

inflation is caused by constant production of money. if the money isn't recycled in some form (like taxes) then it is actually "pooling" in the system these pools, although they are good for the the constituents of the system, are not good for the system overall

this is b/c the greater the pools outside of the central pump, the less centralized control the heart has over the overall metabolism. it can't coordinate. e.g. imagine a body that can't increase/decrease heart rate in response to if you're exercising or sleeping.

in such a situation, it is forced to produce more and more money in order to constantly maintain its ability to coordinate. like a one way pump open system vs a close loop recycle system

take china. it is printing lots of money to maintain central control and that money just dumps into rising real estate prices due to state controls over capital egress & shady stock market.

but because this money is "crystallized" and doesn't actually move through the economy there is no inflation because money is frozen(but not destroyed) at the same rate it is produced.

as far as i can tell, there is no complex organism that doesn't have a heart. every system needs some sort of centralized coordinator to "tick" at the right speed. a system that doesn't have coordinated goals is not a system.https://twitter.com/a_yawning_cat/status/1342416398295810050?s=20 …

the problem with large pools of money outside of the control of the central originator is not that distributed decision making is BAD but that the central authority NEEDS a certain amount of authority because that authority/power maintains the validity of the fiat!