John, I think you just put your finger on the crux of the issue right there, the feedback loop.
Historically it was something laid down by an authority, like the bank, or a government, who indeed sought interest on what was issued.
Now, things seem to have changed in that the market appears to have taken control. It decides the price of gold, and the rates of currencies relative to one another, and even whether or not a particular company is dead or alive.
The old system might declare a company dead after it can no longer pay its “debts”, but the market ignores this, continuing to trade the stocks and shares of some such companies (Hertz for example).
So it looks like now, it is the market who are deciding which money has the most value, and even what is money, and what is not.
In a way, the market is replacing the function of government, and banks.
The banks have no choice but to continue escalating the issuance of money, as this is the only way the market sees it as having value.
Note that the nature of the market changed very recently with the arrival of new trading apps like Robinhood, which have opened the doors of what was previously only an elite privelege of trading, to kids; gamers who learned how to trade in game environments.
Now, the kids probably vastly outnumber the old elites, and I bet nothing is giving them more joy, than being able to overturn what the elites have traditionally declared has value, and what does not, hence the idea of “Zombie” companies probably tickles them pink.
Remember, most kids by the old system, face a lifetime of “debt”.
Says who? I bet they are asking.
I think we might just be seeing the next phase of democracy in action my friend, the new slaves revolution :p