1) QE money is free money. It didn't come from taxation on services/production/spending, etc. After this is lend out, there is no way to get it back. Is there (via interest rate increase, etc)? Taxation to get QE back will be unrealistic since the QE money was never a tax revenue to begin with....
2) Trickle that QE free money down (after money creation from lending/borrowing)... it all went somewhere... some in commodities, some sitting in bank accounts of the rich, some here, some there.... etc. Ultimately, this extra money is making things more expensive and any existing debt cheaper. This would make anyone with some savings uneasy - thus prompting them to spend their money on hard assets(land, condos, copper, gold, etc). when you get enough people spend, you get more inflation, and more people with savings scared about the value of their savings. That would be recipe for hyperinflation - unless interest rate is so high that it attracts people away from spending. How much hyperinflation pressure do you think QE has created? What interest rate would you like to see for you to keep your money in the bank vs. look for a piece of land or gold to buy for value preservation? (me... finger in the air... at least 10%..maybe).
2) Trickle that QE free money down (after money creation from lending/borrowing)... it all went somewhere... some in commodities, some sitting in bank accounts of the rich, some here, some there.... etc. Ultimately, this extra money is making things more expensive and any existing debt cheaper. This would make anyone with some savings uneasy - thus prompting them to spend their money on hard assets(land, condos, copper, gold, etc). when you get enough people spend, you get more inflation, and more people with savings scared about the value of their savings. That would be recipe for hyperinflation - unless interest rate is so high that it attracts people away from spending. How much hyperinflation pressure do you think QE has created? What interest rate would you like to see for you to keep your money in the bank vs. look for a piece of land or gold to buy for value preservation? (me... finger in the air... at least 10%..maybe).
