“I think the bottom line to us serfs is the following:
1. Interest rates must and will go up
2. Get out of debt
3. Live well below your means
4. Save”
or, the government can opt for inflating the way out of debt and obligations.
Your choice - the prudent one - is one that takes sustained effort and discipline for individuals and government.
The inflation choice - the easy one - allows politicians to demagogue, point fingers, and shift blame - and then institute social programs, and “security measures” to deal with the effects
Now, there used to be a time when one could trust our government to do the right thing. It’s too easy to keep promising the big promises, then blame someone else when the promises are either fulfilled or fulfilled at pennies on the dollar due to hyperinflation.
The hard way requires tough leadership & sacrifice, the easy way requires continued irresponsibility and short-term thinking. Which one do you think our government will take?
The politicians will take the easy way out and try to inflate their way out of this mess - which WILL lead to much higher interest rates (as the world is not going to fall for it)...
The FED can only control very short term interest rates. The rest are set by the market.