>The government is buying treasuries to push down rates, not because they are doing QE at the moment. Now pushing down rates means there is more money to borrow (the gov buys from owners of bonds, they get cash in return), but it doesn't necessarily mean the government is printing money (you can tell by he inflation rate, which is still quite reasonable).
We've had quite a bit of asset inflation. Sure, the consumer products you buy that were made in China aren't going up, but Zillow says my house is worth more than double what I paid five years ago. You can't tell someone looking for housing there's no inflation.
Did you ever stop and wonder why infrastructure costs so damn much in the US? Why a rail segment going from nowhere to nowhere in California costs seventy billion dollars, or a new bridge ten billion?
>The corporate bond market cannot soak up trillions of dollars in safe investments. In fact, low interest rates can simply result from high demand for treasury bonds because they are a "sure thing."
Low interest rates are the result of artificial demand for bonds. If the government would stop monkeying with the bond markets they could "soak up" enough to cover domestic savings. Foreign governments would have to find somewhere else to park their money, but that's not the end of the world.