If government can find ways to engage in counterfeiting–the creation of money out of thin air–it can quickly produce its own money without taking the trouble to sell services. It can appropriate resources slyly and almost unnoticed, without rousing the hostility touched off by taxation. In fact, counterfeiting can create in its very victims the blissful illusion of unparalleled prosperity. Counterfeiting is another name for inflation. And now we see why governments are inherently inflationary: because inflation is a powerful and subtle means for government acquisition of the public’s resources, a painless and all the more dangerous form of taxation.