Strong point you made there. Inflation is a hidden form of taxation, which is something the majority of the people don't know about because it's not something that they are made aware of at school.
I think that's done on purpose to keep people ignorant and vanish a percentage of their purchasing power every single year, and that while the same governments hoard gold to escape from their own financial mismanagement.
At least, I'm glad that Bitcoin made people more aware of the financial system and how rotten it actually is. It's a tiny drop in the ocean still, but it's getting better every single day that goes by.
Basically fiat money has no meaning (worthless). Fiat money is just a piece of paper or a coin bearing a certain value. The new value has meaning if he can give you something: exchange it for food, clothing, and other needs.
Poor countries with weak economies, its fiat value tends to continue to weaken against the country whose economies are stronger such as the US Dollar, Japanese Yen, Euro. These weak state assets are very cheap because their value is measured by their weak fiat value. Cheap assets, very easily controlled by foreign countries that have stronger fiat money.
Inflation is often called a hidden tax and is considered the worst tax because most people are not even aware of the impact on the money they have. Inflation also has a positive impact on state revenue. inflation has a positive effect on VAT receipts. This is because if there is an increase in the inflation rate, it will automatically increase the selling price, which is the basis for VAT Tax Imposition.
Through the two fiat and inflation mechanisms, a poor country will get poorer, so will the poor population continue to multiply and increasingly because they also continue to be taxed by what is called inflation.
To break this chain what can be done; Countries and all institutions in it (including private institutions), no longer calculate their wealth with a measuring instrument whose value is biased like fiat money. Use a standard measuring instrument such as gold. Thus the value of the country's wealth is maintained and cannot be mocked through the 'price' of fiat money on the market.
The state must be able to reduce inflation to its lowest point so as not to burden its population with inflation as a 'hidden tax' for the entire population. The use of money that has intrinsic value is one solution because the use of currencies that have intrinsic value will initially stop the process of impoverishment further. With the next hard work, prosperity will be distributed evenly for the entire population.
In my opinion, a good economic system is an economic system that can create equity for access to capital, access to markets and access to the same values.
