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I can't predict human behavioural responses to stimuli, but I can offer hypotheses on what may occur given a set of potential responses.

I think we are all forgetting the market's ability to adapt to government intervention. The fact that long-term bond rates are already spiking is evidence that foretells the possibility of the market saying NO to an increase in money supply. Maybe banks won't lend in anticipation of...

The reason why Laffer didn't mention Japan is because its banking situation is different: "The lack of credit expansion, even after expansion of the monetary base, is not due to investors expecting that future interest rates will rise, but is instead caused by the enormous amount of bad debt...

You're saying inflation averaged 7.5% over the last 29 years?

The article ignores the fact that the real estate bubble and consumer debt of recent times was caused by decades of low interest rates. Why would consumers (or governments for that matter) NOT borrow heavily when interest rates are set ridiculously low? Blame the fed...