Well, its kind of like the old story of the three guys stuck in a hole who got rich trading hats back and forth...

Inflation isn't a problem unless there is an actually scarcity of goods and people start competing with each other to buy them. There really isn't any need, considering that we are all part of the global economy, for any particular nation or region within a nation to produce hard goods. All will be well as long as the country that does so is willing to accept YOUR currency for what they produce. The problem appears when YOU don't produce anything, or offer any services, that they want to spend that money on. Of course, in the US we have solved that problem by selling bonds to the Chinese, etc., so that they will eventually own the country anyway.