Talking about the 70's, Paul Volcker didn't cure inflation with higher interest rates, given it squeezed credit to those willing to borrow, to grow the economy, which wasn't totally financialized back in the day. Meanwhile gifting higher rates of interest to those already sitting on piles of surplus wealth.
It was Reaganomics.
One of the main ways the Fed has to raise rates is to sell the treasuries it bought to issue the money in the first place and effectively retire that money. If the Treasury is issuing lots more debt, that also soaks up the surplus money, which can then be spent in ways the private sector never would, like building up the military, but which gives the private sector more things to do and invest in. "Priming the pump," as they liked to say.
Ask yourself, could the financial markets function, if the government wasn't borrowing up trillions in essentially surplus investment money?
The wars are just a conveneint way to make it go away, so more can be borrowed. That's why the people in charge of such strategic ineptitude are promoted, not shot.
The reality is that money is a social contract and accounting device, that enables mass societies to function, but people see it as a signal to extract and store. Given it is a contract, even gold backed currencies, where the asset is backed by a debt, storing all those promises requires generating the obligations to back them.
Back in the old days, people raised and educated their children, with the assumption they would be taken care of, in old age.
Now everyone has retirement accounts, but what backs them? Usually debt younger generations are taking on, from houses to education. So it's the same feedback loop, but with a middleman skimming off the cream.
The functionality of money is its fungibility. We own it like we own the section of road we are using, or the fluids passing through our bodies. It is a public utility, like roads. People who love money and hate government are as clueless as the fish that loves the worm, but hates the hook.
If you don't want the government in your business, find ways to go back to more organic networks. Resurrect the idea of the commons. It's not socialism, as there is public and private property. It's just a matter of understanding which is which.
Remember government was private once, but as kings lost sight of the feedback with their subjects, they were usurped. Now banking is having its, "Let them eat cake." moment.
If they want to destroy their system, why stand in the way? Just step back and step away.
