The revenue of debt created by the government on fiat is taken away from you through taxes. This is why we call taxation a theft, you're literally being denied your dividends because you were already indirectly taxed when new debt was issued and now your revenue for holding said debt is being taken away.
By simply holding debt, you're making an investment, and we can prove this through what's popularly considered the “safest yield-bearing investment” — bonds.
If you buy bonds, it's called an investment and bonds are just debts, but what the government doesn't want you to know is that by buying bonds you're paying twice for the new debt it creates and you'll pay the third time through taxes.
You don't hate the government enough.
Have you ever noticed that inflation is never really higher than tax revenue as a percentage of GDP? Ever? Maybe you've not, but that is central to what we'd explore in this article.
The biggest lie we find ourselves dwelling in is that fiat currencies lose value because the government prints money. Fiat isn't designed to lose or gain value, it's just been papers with numbers on them before it became digital.
Prices of goods and services are bound to fluctuate overtime, this is purely the effects of supply and demand in addition to individual company optimization for profits.
Sure, how these companies optimize could be influenced by the government issuing debt and adjusting interest rates but none of those secondary factors eliminate the fact that on the fundamental level, price is individually defined by producers of goods and services to meet their needs, profit targets or whatever you want to call it.
The reason you think about inflation all the time is because you've been conditioned to do so as that makes you not think about what is taken from you in the name of taxes.
Contrary to popular knowledge, the government runs a very profitable business. Certainly, the most appropriate term would be “fraud” but let's just excuse it's true reality and stick with “business.”
Moving on, when we say things like “the government is $36 trillion in debt” we simply reveal that we have no understanding of how the system works.
The United States government isn't worth giving $36 trillion to, no government in the world is. Want to know who is worth it though?
You. Of course, not just You, everyone you know that's capable of contributing any value whatsoever to the economy, collectively, that's what's worth giving $36 trillion to.
It is the competence of the American people that is the leverage, not stupid government officials that can't seem to get in a room and discuss business as professionals these days.
Money printing is not the problem
It's what happens with the revenue that is.
What we call money is just promises we carry around. I promise that if you take my $1 for those oranges you sell, I will take it back tomorrow if you try to buy whatever it is I'll be selling for said $1.
The promise is to accept the USD and give away something of value. There's no promise that everything will be priced the same, just that we will all accept the USD for something of value if the trade amount seems fair to use.
If you think about it long enough, you come to the point of realization that even what we call counterfeit money could be accepted if people simply kept the same promise. This is frankly why crypto is hated by the government so much. It's a form of money that people accept that isn't fiat and is essentially out of their control.
Moving on. For an economy to expand, money has to be printed and injected. This money shouldn't exist, but it can as “debt” passed on pre-existing holders of said money.
The problem however arises when said money that was injected into an economy indeed aids expansion but where the holders who took on the debt are supposed to get the benefits, they get taxed instead.
The new money created jobs and valuable products and services that enabled value(in debt) to change hands, you got paid, companies got revenue which includes the value generated from the new debt, but the government now uses taxes to take it away from you. Again, if you look at economic data for past years, you'll find that inflation rate has always been lower than tax revenue percentage per GDP.
Have you never wondered what would happen if you never paid taxes? Surely you wouldn't be complaining about eggs or gas prices because the government didn't take fuckin 35% off your income.
Here lies the proof that absence of taxes would eliminate the burden of rising prices.
You are poor because you pay taxes not because of inflation. Prices of goods and services always have to change overtime. They would organically rise and fall depending on varying business-specific factors such as cost of production, demand, competitions and their pricing, etc.
The government creates and sells debt because it's aware the people will create enough value to compensate for its creation. But unlike the passed on cost of the debt, the revenue gotten for said debt is taken away from said people through taxes.
Why do you think bond yields and inflation rates often move in the same direction?