The problem with these low interest rates on the major currencies is that these rates are causing disruptions in emerging market countries. Brazil has to keep lowering its rates to discourage dollars and euros finding their way to its higher-yielding economy. The lowering of rates combined with the hot money already there is stoking inflation.
Food and energy inflation is very bad in emerging economies, because these two line items account for the lion’s share of household budgets. A failure to tame inflation in these countries could lead to social unrest.