The U.S. can't fund itself on inflation alone. Even with a central bank that prints money, direct taxes are essential because they create demand for the currency. Without taxation, the dollar loses its anchor.
Why does the US need to tax when it has the inflation tax? If you have a central bank and you can just create fiat money out of thin air between the treasury and the central bank and that unholy alliance between the Fed and the treasury, if you can just create this money out of thin air, why do you need to tax the people? You're taxing them through inflation. Well, here is the reason. Because you've got to create demand for your currency. That is the brilliance of the circular system. And they done it on a global scale and they've done it on a domestic scale. As much as people may not like it.
