QE and artificially low interest rates are simply shoring up the banks and cheap Govt borrowing
When interest rates finally go up (and they will) it's not just mortgage payers who'll be fucked
What is a 'natural' interest rate? Interest rates are artificial but their very nature, as is the value of the fiat currency they set.
Interests rates will not go up, they have been replaced by QE as the process to control the money supply. They are in effect very similar monetary policy devices however QE has the benefit of being far more transparent as the newly printed money can be simply accounted for by one and all.
Whereas interest rates use 'borrowed' money that people 'hope' will one day be paid back, but hasn't happened yet.
The game has changed.
QE is a better way of doing things.
What is a 'natural' interest rate? Interest rates are artificial but their very nature, as is the value of the fiat currency they set.
Interests rates will not go up, they have been replaced by QE as the process to control the money supply. They are in effect very similar monetary policy devices however QE has the benefit of being far more transparent as the newly printed money can be simply accounted for by one and all.
Whereas interest rates use 'borrowed' money that people 'hope' will one day be paid back, but hasn't happened yet.
The game has changed.
QE is a better way of doing things.