OMFG, you really don’t get it do you??? One more time for the slow-witted ones here. THE HYPERINFLATION IN ASSETS HAS ALREADY HAPPENED!!!!!
I admit I am slow witted and a little ignorant. But I’m pretty logical. So maybe I’m missing part of the picture. Tell me where I’m wrong:
1)House prices increased because interest rates were too low, people thought houses would continue going up forever and global investors thought the debt they were buying was safe.
2)Interest rates were low because foreign funds were flowing into the US.
3)Now that the scheme is over, interest rates will rise.
I think I answered my own question. The fed will not be able to affect long term interest rates. Money will be expensive and short to come around and therefore deflation??