I am confused how to respond to your comments. On one hand you refer to Austrian School of Economic - which is complimentary. But on the other hand simple concept oversupply of money is cause of inflation seem not to resonate with you?!

1) We are in sync with definition of Segniorage as delta between the cost of producing money and and market value in real goods. Yet for the rest I do not understand why it makes difficult to grasp.

For simplicity of example: Assume we have static closed economy with supply/demand equilibrium. Economy has 10 units of goods and 10 units of currencies in circulation making the price parity to be 1 to 1. If additional unit of currency is introduced into economy without increase of number of goods, the price parity becomes $1.10 per good. That's inflation due to printing additional currency unit. If economy produces additional unit of goods, and additional unit of currency is also introduced - we have case of zero inflation. There is 11 units of goods and 11 units of currency in the system, thus price parity is still 1 to 1. The question is who became the full beneficiary of the extra good produced?

The answer - one who printed that unit of currency! :) That extra currency unit can be exchanged for real unit of good. Yet, the catch is - it took 100 units of labor to produce the good, and it took 1 unit of labor to produce the currency. Thus, one unit of labor (currency unit) gets exchanged to 100 units of labor (unit of good).

So with zero inflation, producer of currency inherited entire delta of economic growth in real goods.

I can see you could be ready to counter argue with "This is not how real world works. There is supply, demand, productivity increases, population growth and blah, blah, blah..." And yes you are right that real world is more complicated - but fundamental principle remains the same. This is how 0.1 of Bankers own 90% of world wealth :)

I can provide you with even more information on the rest of your points and on how stock market, military might, and World Trade Agreements play role of "bottomless pits" for hiding real inflation. Yet, we need to take this discussion offline, as answering in this forum would be too much of typing effort :).

Anyone who is interested in following up on this - send me your contact info and i will follow up with you via email :)