Actually it is defaulted into existence

 What is Money?

The capacity for the Fed to generate more inflation can be appreciated in a straightforward statement:

ALL MONEY IS LENT INTO EXISTENCE.

Ruminating on that statement helps you understand why inflation is not running rampant despite Fed “printing presses” running at full steam. It also provides a glimpse as to how the Fed can change that. But first, let’s consider how money is created.

“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” Those oft-quoted words by Milton Friedman define the root cause of inflation. To paraphrase, it means more money chasing fewer goods creates inflation.

Most economists agree with Friedman’s theory. The question, however, is what constitutes money? The problem facing the Fed is that they do not create money. Strike that; the Fed does not yet create money.

The double entry accounting system does better with inflation than it seems.  The inflation we have seen happened between 1972 until 1983. It was defaulted into existence. Since then we have had disinflation, the economy taking a generation to sort out all the pricing issues. So the post is correct, just out of phase by half a generation. 

The scary part is the disinflation continues into deflation, not from loose money but from the tight money leading up to another default. All those piles of too much money are just that, piles, piles tied to a regulatory tax and legal double entry accounting system.  Velocity is collapsed, the economy still down below zero growth rate, mostly the black swan making all supposition shaky, I admit.