When governments resort to massive fiscal quantitative easing programs directed at mortgage bonds, they're essentially injecting enormous liquidity into the housing market without addressing underlying supply constraints. Here's the catch: this approach tends to push asset prices higher while doing little to combat real inflation.

Mortgage bond purchases create artificial demand that inflates prices faster than actual economic productivity can keep pace. The result? Your purchasing power erodes. We've seen this movie before—low interest rates combined with targeted stimulus don't create sustainable growth; they create bubbles.

For investors watching crypto markets, this matters. When traditional monetary channels get distorted by excessive fiscal intervention, alternative assets often see increased interest. The inflation that follows mortgage-focused QE doesn't stay confined to housing—it bleeds into everything else, from commodities to digital assets.

The real issue is that policymakers keep confusing liquidity injection with genuine economic stimulus. Throwing money at one sector doesn't solve systemic problems; it just redistributes the inflationary burden across the entire economy.