What Onyx said.

The use of the Pill is commonly misunderstood. It doesn't trick your body into thinking you're pregnant or stop your period, it stops ovulation. The Pill wasn't designed as a cycle including 7 days of sugar pills, but early focus groups showed women felt uncomfortable about not "menstruating" so they added the sugar pills.

But it's not a proper period that occurs, as Onyx already explained. Theoretically you could continue from pill sheet to pill sheet without taking the sugar pills without ill effect.

That said, it can take a while for your body to adjust and you may experience breakthrough bleeding which can be pretty annoying. I recommend doing the full 28-day cycle (including the sugar pill) for 6 months before you start skipping the sugar pills. I don't know why, but that has worked for me in the past but if I try skipping the sugar pills as soon as I freshly begin taking the Pill, it goes a bit haywire.