I really don’t think any complex analysis is needed. MMT and CasP have demystified the operations for us.
1. Loans and deposits move in tandem because an accounting identity is in operation under double-entry bookkeeping and national accounting. (MMT)
2. Rich people and corporations get loans at cheaper rates than poor people and small businesses. Money creation in this form must result in redistribution from poor and middle to rich (on a sliding differential scale). (MMT and CasP)
3. Money creation is a power operation in the sense CasP uses the term “power”. (CasP)
4. Money creation is rigged and gamed by the people with power in the system. (CasP)
5. The previous deflation and the zero interest rates were rigged and administered. The current inflation is rigged and administered. (Follows from CasP IMHO.)
6. Why does the rigging of the system change? When the power players determine they have “mined out” a process for all it’s worth (low or zero interest rates) then they will switch the system to the opposite regime (inflation) for further differential gains. Zero percent interest rates permitted big players, those who play in billions, to borrow billions at zero percent interest. That is free money, provided bonds (government bonds perhaps?) can be obtained somewhere with risk-free positive interest rates. However, this process, which delivers differential profits, will sooner or later drive inflation. First it drives asset inflation. Later is may well drive consumer goods and services inflation if and when any of the sloshing money gets to workers at any level, including skilled workers and professionals.
Then, a relatively rapid switch to inflation becomes the new way that big players can reap the differential profits. The asset inflation was useful early as it busted small players (relatively) as they could not purchase assets much at all and their relative wealth declined as those who acquired assets got further large gains. Once the assets are “all acquired” by the big players (e.g. landlords now own most of the housing stock) then the asset inflation game is played out. It is now time for the consumer goods and services inflation game to take all the money workers are now not putting into assets beyond their reach. Interest rates are jacked up and inflationary price rises are administered by monopolies and oligopolies.
Note that central banks are run by boards of appointed business people. Central banks are not run by governments (as they once were in some cases). Equally, central banks are not run by workers. To reiterate, they are run by business stooges. The idea that they would run interest rate policy to do anything for workers or the poor is preposterous. Governments are run by big business too. Donations capture regulation and policy so government fiscal policy also has the fingerprints of big business all over it.
The whole system is rigged by and for the rich. QED. It’s an open and shut case. As I say, there is no mystery now MMT (revived Chartalism) and more importantly CasP have demystified things.