John Maynard Keynes was an economist in the early 1920s who released a series of books about monetary policy and how governments operate under “fiat currencies”. (The Federal Reserve Note)
This is a few paragraphs from one of his books. A Tract on Monetary Reform, chapter two 'Inflation as a Method of Taxation'. pg 43
“Let us suppose that there are in circulation 9,000,000 currency notes, and that they have altogether a value equivalent to $36,000,000 gold dollars. Suppose that the Government prints a further 3,000,000 notes, so that the amount of currency is now 12,000,000 notes; then, in accordance with the above theory, the 12,000,000 notes are still only equivalent to $36,000,000. In the first state of affairs, therefore, each note = $4, and in the second state of affairs each note = $3. Consequently, the 9,000,000 notes originally held by the public are now worth $27,000,000 instead of $36,000,000, and the 3,000,000 notes newly issued by the Government are worth $9,000,000. Thus by the process of printing the additional notes, the Government has transferred from the public to itself an amount of resources equal to $9,000,000, just as successfully as if it had raised this sum in taxation.
On whom has the tax fallen? Clearly on the holders of the original 9,000,000 notes, whose notes are now worth 25 percent less than they were before. The inflation has amounted to a tax of 25 percent on all holders of notes in proportion to their holdings. The burden of the tax is well spread, cannot be evaded, costs nothing to collect, and falls, in a rough sort of way, in proportion to the wealth of the victim. No wonder its superficial advantages have attracted Ministers of Finance.”
This is how a “debt” based system operates. We need to bring back sound money!
I'm only the messenger…