I don't really see how what you say is a challenge of my views because I don't disagree with what you're saying

if anything I'll admit that it took me way to long to really grasp how taxes "close the circuit" of the money cycle (or as you say: "Taxes is the only way that the government can create demand for their worthless money, so that's why you have them.")

But I'm considering some additional (very empirical/pragmatic things): the multiple-fold dipping of "energy" is why it's all fractional reserve banking systems (fractions, or quotients, or rational numbers up until Euler's constant and financial calculi... but I say this to tell about the depth at which I'm trying to think about this)

I suppose my larger point is that given that the main act of creation from nothing ("financial alchemy"?) should suffice for well run states (i.e. governments but I can talk still more precisely about this) to get all their energetic needs (i.e. monetary i.e.cash and currencies) but because complex reasons (but mostly due to corruption in various forms?) it doesn't work and taxes are needed