The money supply is unaffected by discharges.

Ah, OK. Maybe “inflation” is the wrong word, but there’s a response. Insurance becomes more expensive, loans become more expensive, basically everybody for whom such an event is a risk reacts to its probability growing.

but it’s not the doomsday scenario you’re painting it to be

Well, I’m not saying it’s literally a doomsday scenario, just that it likely wouldn’t benefit the person dreaming about it more than it would harm them.