The chart below is the US gov's latest idea of a "soft landing"...

The chart below is the US gov's latest idea of a "soft landing" into a slave economy.

i.e. No rate cuts in 2024. Then two token rate cuts in 2025 (maybe), then "higher forever" .

This has more to do with the US gov debt situation than anything else.

When you borrow money from someone, the interest rate you pay the lender has to be sufficient to compensate the lender for inflation and the risk that you might go broke and might not pay back the money. Otherwise, they won't lend you money (or buy your bonds).

Now, the US gov cant go broke because they can print more money. But if they do that, the money you paid for their bonds might be worthless when you get it back (E.g.with a 10y bond, you get back the principal after 10 years).

Its a bit like buying shares in a startup company. They keep printing and issuing more and more shares to cover their costs, so your shares become diluted and worthless over time.

"Higher forever" means renters and mortgage holders will have to keep paying through the nose for the roof over their heads and have nothing left over for anything else.

It becomes a slave economy when the workers receive a bed to sleep in, some clothes and food to do more work and nothing else - and it's getting close to that for many people already.




(See here.)