Well, we've been stuck in this situation for a while. I'd say the consequences have been: persistently low inflation because the new money never gets into people's wallets, and lots of capital-asset valuation bubbles.

Ultimately, actual inflation would be a good thing, by helping households deleverage. Instead, the asset bubbles are likely to cause more household debt, and around we will go until another crash.

I honestly think there will be open revolution in at least some countries (well, Greece is already in such a state!) due to the radical detachment of the capital markets, and the political class held captive to those capital markets, from the household sector.