The way I see it is:
You get a 1.9x split every year (annualized) if you are powered up.
Inflation goes up at 2x every year (annualized).
Doing nothing on the site, you lose 10%.
Posting and upvoting only get you some % back, but on average you won't break even (because of other payouts like mining and liquidity rewards).
That's if steem stays the same value. The currency value is swinging and is more volatile than the 10%.
What happens to the total dollar money supply is not relevant to your interest payment on the bank's ledger w.r.t. whether there is a transfer and compounding. Just because the money supply debasement is compounding faster than your interest is compounding, is irrelevant to whether the interest is compounding. Duh!
For each 1 STEEM created, 9 STEEM POWER are created and transferred to SP holders. This is a transfer of value from STEEM holders to SP holders, as a percentage of the market capitalization of the money supply.
So soon we'll all be steem millionaires, but steem will be approximately 1 millionth the value (and they'll adjust the units accordingly and employ rounding). Yay!
Maybe we can say the same about the dollar if we had 90% compounding interest investment valued in dollars and the Federal Reserve decides to hyperinflate the supply of dollars.
If there was no transfer of the percentage of the STEEM money supply from STEEM holders to SP holders, then there wouldn't be any compounding, because it would be a wash.
P.S. I don't think the Fed will do that. I am just making a math point.
nonononononononono....
Its not a split. its a dividend. If they werent afraid of getting jumped by SEC agents thtas what they would have called it in the white paper. thats why they were talking about dilution so much.
Its not inflation, for a variety of reasons. (check my blog for my post about inflation)