Andyglo, virtually all the QE is being held by the banks who then re lend to treasury/fed. (Thx timber). The problem is getting the general public to borrow money off the banks, who as you say, are offering stupid mortgage packages again. Until joe public feels comfortably well off again, the CB's can offer as much cheap money as they like and it won't change anything.
The way to make it count is to inject the funds directly into the public's hands, via infrastructure building, giving, in particular, the older workers the opportunity to earns some dough. Until that happens, participation rates will continue to fall, part time work opportunities will continue to rise, and as a result, so will the welfare bill.
the single biggest problem facing the OECD is the lack of inflation, especially since, unlike, Japan, we still have a rising population, which would normally do the trick.
