I think the problem is that we are overestimating the intelligence of an average HN reader.
The concept you are trying to explain is somewhat abstract and difficult. My stab at explaining it:
Let's say that there are $100 in the economy right now. A piece of bacon costs $0.01 dollars.
The government, now fearing deflation, wants to issue another $100 into the system. The banks get access to this additional $100 at a rock bottom interest rate of 1%. They then proceed to use that money to buy out the bacon on the market for $0.01 dollars.
The people selling bacon now realize there is $200 in the market instead of $100, and start selling bacon for the true price of $0.02 dollars a piece. Unfortunately, the bank and their friends were already able to purchase the bacon for $0.01 dollars out of $200, when the market corrected price was $0.01 out of $100.
This correction error happens every time the fed prints more bills, and serves to enrich the people who get central bank money first.
The concept you are trying to explain is somewhat abstract and difficult. My stab at explaining it:
Let's say that there are $100 in the economy right now. A piece of bacon costs $0.01 dollars.
The government, now fearing deflation, wants to issue another $100 into the system. The banks get access to this additional $100 at a rock bottom interest rate of 1%. They then proceed to use that money to buy out the bacon on the market for $0.01 dollars.
The people selling bacon now realize there is $200 in the market instead of $100, and start selling bacon for the true price of $0.02 dollars a piece. Unfortunately, the bank and their friends were already able to purchase the bacon for $0.01 dollars out of $200, when the market corrected price was $0.01 out of $100.
This correction error happens every time the fed prints more bills, and serves to enrich the people who get central bank money first.