Two decades of cheap money in Western countries finally begets inflation

I have blogged here multiple times over the years about the insanity of keeping short and long term interest rates artificially low for two decades. Short term interest rates hovered at around zero percent. This was unprecedented in recent history!

Private savings were discouraged! People bought real estate or stocks!

All loans were cheap. In particular, Western governments loaded up on debt! Central banks eagerly bought government debt by the billions year after year.

Cheap money for about two decades has come home to roost! Most economists should have known it, but few were warning about it!

The federal funds rate and U.S. long term government bond yield are representative for the short term and long term interest rates in other Western countries as well!