James Grant on Inflation and the "Income Famine"

Jim Grant was recently featured on Wealthtrack where he deftly sketched out the “income famine” conundrum for investors and provided some pointed social commentary for our times, namely, The Rescue That Missed Main Street.
Most interesting were his comments about the desirability of deflation where he somehow forgot to mention that the debt burden would increase for anyone who owes money, hence the motivation of targeting 2% inflation to help cushion the blow of deleveraging.