If and when interest rates rise (and the Bank of England is suggesting it may do just that) and if and when they try (I emphasis the word try) to reverse QE, as they hinted they might only yesterday (although their hints are notoriously unreliable) then I suspect the time to a tipping point will begin to reduce, sharply.
It could, of course, be argued that this might be the best way that there is to reduce wealth inequality. I have to say that is not the way I look at this. The stress that a radical asset revaluation will create is enormous. Pension funds will be in massive deficit. Insurance company solvency will be challenged.
Pension funds are horribly in deficit as a result of low interest rates. Rising interest rates will reduce the actuarial cost of providing future incomes more than the fall in bond prices will reduce the capital value of the fund. For the reverse happened as interest rates fell. The same is true of insurance companies at the Ogden Rate reverses.
That is, rising interest rates is the cure for the very ailment that the Senior Lecturer tells us rising interest rates will cause.
It’s almost as if he knows nothing of the subject under discussion, isn’t it?