Is my understanding correct:
- In history (ancient, medieval) money was directly created by governments, therefore any monetary expansion meant 100% net profit for government, which could be used to finance whatever governemnt needs. The problem was that government (King) had strong incentive to create too much money, which caused serious inflation.
- In modern states money is created by central bank, which lends them to private banks, which lend them further. Profit is generated by interest from this lending. The beneficiary of this profit is whoever owns shares in the involved banks. Those are typically wealthy people who have more savings. The government is typically rather borrowing (and paying interests) due deficit spending.
- Monetary expansion and resulting inflation goes at the expense of everybody else in the economy (those who owns money, but does not own money-issuing authorities). While in the old system government benefited at the expense of everybody else, in the new system bankers and share-holders benefit at the expense of everybody else. In the old system monetary expansion was like property-tax (i.e. decreasing inequality). In the new system it increase inequality as mostly rich people own shares of money-issuing authorities.