enforce tax collection. If the underlying problem is the threat of inflation caused by an excess of demand over supply, then the problem is not an excess of demand nor is the solution to dampen demand. The problem is a paucity of supply and the solution is to increase supply. I have read all of your writings and find them quite interesting. This explains my plethora of comments. However, your responses are unclear to me. My question boils down to the following: why not raise funds required for public spending exclusively through short-term debt and do away once and for all with the distortion of the economy which comes with taxes? I have read repeatedly in your writings the assertion that the rationale for taxes is to create a need for currency which is the only means available for paying them. What is the proof for this assertion? None of your writings or references go beyond the assertion and it is a very important part of your argument in favor of taxes. Alexander, the theory of state money based on taxation was not developed by Warren. It is called Chartalism. Modern Chartalism goes back to G. F. Knapp, writing in the 1920?s. MMT is a form of Chartalism, or as some say, Neo-Chartalism. For a summary, see the Wikipedia article. My question is not as you state it. Ostensibly, the original reason for taxes was to gather resources for the sovereign and, later, the state. Long after taxes came fiat