And so with QE, inflation...
-
Given the massive debt hole we dug for ourselves in the west, the natural outcome of QE is inflation, and lots of it. But this isnt a bad thing. The holders of the debt are going to get hosed, but the readjustment in global supply and demand means that alot of the manufacturing that was offshored during the credit boom, will onshore during the correction. No bad thing, but we wont have the consumption lifestyle of the last 10 years with cheap money and cheap imported goods. We will return to a realistic produce and consume model instead. Of course expect with that inflation higher interest rates so going for a fixed mortgage right now could be a good ides. (In fact currently mortgage rates have decoupled from base rates and are following the various IBORs)
============================== Nothing to say.