Everything functions in a dynamic world – not in a one dimensional vacuum. The expansion of the money supply by the Fed of $3 trillion was NOT inflationary because it took place simultaneously with a contraction in leverage (money supply) of at least $5 trillion if not closer to $7 trillion. This is different when compared to the Japanese expansion of the money supply by more than $1 trillion. Why? Because the contraction in the leverage in Japan took place more than 20 years ago. Therefore, the expansion of money supply in Japan is significantly different than the Fed’s expansion in the middle of a contract because you MUST net out the difference.
The same event does NOT produce the same effect. It depends on a host of variables and how they are set up at the same time!!!!! This is why stupid simple rules – “interest rates up, stocks down”, are for the average person who cannot think beyond one step at a time.
Likewise, borrowing is simply Deferred taxation. Ultimately you raise taxes to pay for it as we are doing now. Government then gets nasty, hunts people down, and will kill them just to confiscate assets. Borrowing is NEVER free! This is what destroys empires, nations, and city states and politicians do it ALL THE TIME because they only care about the instant moment and NEVER about their legacy.
Therefore, it is not merely the increase in money supply, the debt is leveraging that and sends the economy running faster over the cliff and point of no return.
I believe that both the Arabs and the Catholic Church before the Protestant Reformation, had the sin of usury prohibiting interest. From ancient times onward, it was clear that DEBT destroys civilization and I believe this is why these religions banned such schemes.