The Middle and Working class gets hosed either way. High inflation, they get hosed. More taxes, high interest rates, and less government services, they get hosed.

Meanwhile the government actually reduces its own debt, and expenditures for government programs like social security through inflation. The government benefits from inflation.

Who else benefits? The 1% who hold high debt. Their debt goes down in inflation, while their assets increase in value.

This isn't a flaw in the capitalist system, rather it is a feature used to exploit the Middle and Working class. As you say, it is a 'con' by 'rented politicians'.