Papertigger, simply put, all that QE has inflated at the moment are risk on assets and the USD.
If the US banks went out and lent the money that's sitting at the FED on 0-.25% there would be inflation and tons of it but the banks don't see assets inflating in value yet.
But there isn't any significant inflation in the US. I read of inflation on one side and indexed assets falling in value on the other. It could also be interesting to see the magic inflation fall below 1%.
That's the panic tick.
Ben is quite happy controlling market madness by the occasional comment dropped here or there. All the other G20 CBs are playing the same game and allowing misquotes of convoluted statements.
The real gauge to watch, apart from the US inflation figure, is the JGB rates. Now Abe has both houses under control plus his own CB there is every chance that he will embark on a lopsided policy mixture that brings his magic recovery to an abrupt halt.
Forcing down the yen without simultaneously freeing up old economic practices could easily blow up in Abe's face as interest rates move upwards quickly.
Ben has a 'tigger' by the tail and across the Pacific Abe just might get his wish and the consequences.
