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Invest0rnoob1 t1_j6o4gy6 wrote

Reply to comment by jbacon47 in So accurate by Njkoskin

They can’t keep raising rates otherwise the debt obligation would get too high.

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jbacon47 t1_j6o4mbl wrote

So I’ve heard. Better start raising some taxes

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Dozekar t1_j6pa8ap wrote

The point is that debt obligation getting too high is the only thing that actually stops inflation.

That's literally the point. That is what they're targeting.

You're still interpreting soft landing as for you and not soft landing for the fed.

You stop money circulating by making your current obligations high enough to pull that money from the market and if your business doesn't adjust it gets wrecked.

No wrecked businesses = it hasn't happened yet. Turning free money fountain back on = inflation is back.

The rates aren't going back down any time soon, or the inflation is coming back.

The lack of bad things happening is how much free money is still in rotation. This is 100% to be expected with 13 years of pumping money into the economy like this.

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