>But it's ignoring something much simpler: if you print more money, you're directly obfuscating supply and demand by devaluing your currency.
Is this even a logical proposition? If people save $100 dollars, what's wrong with adding $100 dollars to the economy, assuming no price controls like the massively distorting zero lower bound that artificially keeps interest rates from entering negative territory to signal overabundance of capital. This artificial price control forces all capital to be utilized at capacity (endless growth fallacy) or destroyed (broken window fallacy) to reduce the abundance of capital.
After all, if every product has a price at which it is guaranteed to be sold, there is going to be an interest rate that guarantees that capital will be accepted by someone even if that interest rate is negative.
Imagine if you produced trash that costs $10 to dispose of, or in other words, the price of that trash is -$10 but then the government stepped in and guaranteed to buy that trash for $0. Suddenly a lot of people will keep producing more trash.
>There's still more money in the system, and that system is purposefully using the extra cash to prop up the stock market.
That's what happens when you disable market signals like negative interest rates. Since you have obligated yourself to buy the trash your economy slowly turns into a bigger and bigger trash heap. Before you say nonsense like negative interest rates prop up the stock market, think about how a reduction in the money supply is supposed to prop the stock market up, it's completely illogical.
>You know what the best hedge against unsustainable debt is? Devaluing the currency.
No, the best solution against unsustainable debt is to tell the owners of financial capital that they have accumulated financial assets beyond your desire to be in debt, i.e. the interest rate that you would consent to is not positive anymore. As it stands right now. That market signal is completely dead. There is nothing in this market that can say "I've had enough of the debt nonsense, I do not want further debt, I will not accept further debt" as a 0% interest rate allows people to keep saving more and more endlessly which means others must be more and more in debt unless they want a recession or depression and lose their job.
When you think about it, all these rich savers are just lying to themselves by saving beyond the desire of society to let them save which is obviously going to lead to inflation. After all, you have these tokens and no meaningful agreement on the other side that they are worth anything, you just forced that obligation upon them but that doesn't mean they will actually fulfill it, it's not like they agreed to do that. The interest rate that they would agree to isn't positive.