> That is a transfer of money from bond investors to the government. No new money is made.

All forms of debt are money creation. All loans are money creation. Fractional reserve banking is money creation. It doesn't have to be "oh now we are making dollar bills" to count.

Taxation reduces the money supply. Government spending increases the money supply.

> I want to mention that the Federal Reserve can and does increase money supply by buying US Treasury Bonds from banks (converting the asset into cash reserves).

Fun small print. As though that's not the exact mechanism of the brutal inflation the US has suffered the past 5-6 years. The US money supply says it all. There are no other serious buyers for $20 trillion in new garbage paper debt every ten years. It's inflation by currency destruction plain and simple and there are no other paths. It's also why gold is $5,000 instead of $500.