DiggerUK

The Dogma of Low Interest Rates Is Wrong

Harry Long quotes from a former article,
"Low interest rates often have the opposite of their intended effect. Extremely low interest rates can vacuum liquidity out of nations."

Reversing that argument shows that high interest rates can flood nations with liquidity via the carry trade.. A liquidity that sucks wealth from the host, with the same concern for the well being of that host, as a leech has for it's host.
It's a sub species of QE that causes the same problems when the time comes to remove the parasite. It can only be seen as QE by the back door.
The rise in $Aus. and $NZ are down to this carry trade, not expanding economies.

Australia and New Zealand are going to have to raise interest rates to dampen inflation at some point, all that will do is pump up the blood volume for the leeches.
Talk about throwing petrol on a fire.