Money is the medium for transfer of value from one place to another. There are many different ways to transfer value. The federal politicians transfer the value of your work to the Federal Reserve. The Fed takes a percentage of it for themselves then sells the paper money to the Treasury of the U.S. They bill Congress through the Treasury every time they print. This makes for permanent debt.
When the Congress creates deficit budgets every year they steal value out of your money. By printing or digitizing more money in the federal money supply than the value that was actually there, they devalue the dollar and inflate the money supply. This is called inflation even though the dollar is deflated. When the money supply (M1) is inflated the dollar is deflated ($). This is because the value in the economy is relatively stable but the money supply increases.
It is as if there were only one dollar bill in the world and that dollar represented a candy bar’s value. Then the Fed prints another dollar into the money supply so now your dollar is suddenly worth only half a candy bar.
The difference is that the amounts are actually in the billions and trillions.
Another difference is that the additional paper dollars are “eased” into the money supply over time, so that the value change is not so quickly noticed. This is called “quantitative easing” by economists. It is called “highway robbery” by those who are aware.
Rick Majors Blog 