War generally stretches a government’s taxing power to the limit, which means it inevitably resorts to currency debasement. From George F. Smith at lewrockwell.com:
Peace on earth is a wish that gets extra emphasis this time of year. We’re told to pray for it, wish for it, keep it forever in our minds. So why don’t we have it?
The short answer is money. War is profitable to some. It’s profitable enough that profiteers in private industries influence government, which stays home and orders others to do the fighting. War costs money. Where does the government get it? Visible taxes (income, corporate, and payroll) cover about two-thirds of government revenue. The rest comes from borrowing and inflation.
In the US, the central banking cartel known as the Fed stands ready to fund almost anything the government wants, especially wars. The Fed does this by creating money from nothing and buys government debt instruments, the accounting name for which is “assets.” The destruction of the dollar is the residue from the “asset”-buying sprees of the Fed’s Federal Open Market Committee, an operation which its members and most of the economics profession insist is necessary for a prosperous economy—and to keep the bad guys at bay in obscure places on the planet.
J. Biden used the Inflation Reduction Act to issue even more money and debt papers.😎😎.