What you don't know can hurt you.
I agree, And yes I was verbose, but I have found that I needed to explain how money is created as well as the cause of inflation (or one of the cause), even to economic professors. For instance my Econ professor in University. After graduation, I presented him with my paper, and all he could say was I don't understand money. You have done a great job of explaining how the US dollar is valued. I thank you for that.
When you talk of digital dollars held by the Fed. Please elaborate. Do you mean cyber dollars, or Federal Reserve Notes, the majority of which are digital. (Paper money is small change, printed by the Treasury and sold to the Fed for cost of printing, and put into circulation by Federal Reserve regional banks, to faciliate commerce,like vending machines, street corner vendors and drug dealers. I have a$20 note in my wallet for emergencies, it has lain their untouched for years. All of my deposits, all of my transactions are digital, pretty much the same for everyone else. If an employer prints a pay check, it is deposited in a bank or credit union, if the company is big enough, then the deposit is made electronically.
So what is meant by digital?