Re: Tons of inflation
"Housing prices were rising long before QE and have been for years - so you can't blame QE for this."
I think the causality runs the other way round:
1. Elimination of housing costs from inflation measures used to determine interest rates.
2. Off-shoring a lot of production of items in the inflation indexes leading to very low values for those indexes.
3. Maintained low interest rates in view of the low apparent inflation.
4. Low interest mortgages lead to bigger and bigger price rises for housing as all the cheap money goes there.
5. LOTS of financial shenanigans to tap off as much of that home loan business as possible including selling loans to people who can't possibly afford them.
6. BIG liquidity crisis as soon as the people who couldn't afford the loans start to default.
7. QE to fix the liquidity crisis.
8. Low interest rates due to QE fixing the liquidity crisis ultimately caused by too long a period of low interest rates in the first place.
If long continued overly low interest rates were the original problem it's difficult to see how continuing unduly low interest rates for a long time is going to solve it.