If I recall correctly, inflation is hardly a bad thing. Okay, super-inflation is a bad thing, but I'm talking 5-15% a year. As if controlling inflation would ultimately cause unemployment. As long as we keep it smooth, and the salaries rise along with the prices, then it's only a tax on savings. Plus, inflation seems to be heavily and negatively correlated with unemployment (I'm not sold on that idea, but as far as I know, it seems plausible).
I also agree that there is such a thing as living above one means, even if it's a whole country. I disagree however that printing money (with the intention of destroying most of it later) instead of borrowing it at a significant interest rate would necessarily cause inflation. Or are you implying that your government is by nature unreasonable, and will systematically abuse its power to print?
Possibly. But then, if I can't trust my government with that, I can't trust it with anything (starting with taxes). If it's a problem with this particular government, we have elections. If it's a problem with any possibly elected government, then maybe it's time to change the governance itself.