Quantitative easing is bizarrely unapproachable, even though it’s happening right across the world and its unwinding will dominate the economic picture for years to come; one is allowed to reference QE, so long as one maintains at all times a technocratic tone, to indicate that one understands and approves of it as nothing more than a lever to create stability. It was the best idea ever, until you suggest something similar could be done for a social purpose, and then it’s the most perilous idea ever. To interrogate why the benefit must always go to the existing asset-holding class, why human ingenuity can’t devise anything more productive and equitable, is to reveal the shaming depth of your incomprehension.
Because the whole damn point of QE was to raise the price, lower the yield, of zero risk assets so as to get people to go buy riskier ones. Thus lowering long term interest rates.
What this is really betraying is a lack of knowledge of the basics of the system. The government, the central bank, the Bank of England, only control very short term interest rates. Through that they can influence longer term rates but not control them. And through QE and other such things they can influence longer term interest rates but not control them.
That QE moved asset prices isn’t a problem, it was the point.