You said every dollar priced asset dropped at the same rate as inflation. Drop that claim yet?
Actually you misinterpreted, I never claimed such. I said all the assets would suffer the same monetary loss and monetary loss (as I intended its usage)is defined as the purchasing power of the dollars involved.
In the example given a tank of gas for mile car which enables to travel X miles cost $40.00 in the year 2010 and in the year 2011 that same tank of gas increases to $40.40 then I have incurred a monetary loss being I must pay more to get my car to travel X miles.
Now your claim is that you could hedge inflation by buying stocks because they will appreciate in value. Which sounds good except its far from true because as everone knows stocks can decrease in value regardless whether inflation increases. In fact in your example you used oil stocks which I find highly amusing. I am willing to bet that those folks who purchased BP stock in January of 2010 would find it amusing also.
QED