"US Economy: Tragic 'Soft Landing' Illusion, Banking Alarms Signal No Landing"

Is the US economy really doing well? If it continues to develop in this way, will the ultimate outcome be a soft landing or a hard landing?

Recently, the latest evidence has come from the financial foundation of the United States, the banking industry. The data shows that the US economy is likely to be a huge tragedy. So, how serious is this tragedy? How do Americans solve it?

In the past two years, the truth of the US economy has become a huge enigma. On the one hand, economic data is often contradictory, and on the other hand, tax revenue and electricity consumption have been declining, which is difficult to support the claim of sustained strong economic growth.

Especially in the past two or three months, the phenomenon of contradictory economic data published monthly in the United States has become increasingly serious.

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Since October, four economic data released have all improved, showing that the US economic situation is very good.

These four economic data are: the number of job vacancies in the United States in August, the number of ADP employees in September, the number of non-agricultural employees in September, and the unemployment rate in September. Interested friends can go back and have a look. Today, I will not repeat it again.

However, just before the dollar interest rate cut last month, all economic data was very bad, as if the US economy would not be able to breathe if the dollar did not cut interest rates again.

In just one month, the economic situation has suddenly become very good? What kind of magic is this?If these data are indeed true, then the Federal Reserve could even consider raising interest rates in November, or at least should pause rate cuts.

If these data are fabricated by some individuals, it's hard to say, and it's not difficult for everyone to guess the underlying intentions, but many people find it hard to believe that they could be so crazy.

Some experts say that Americans would rather bear the risk of a hard economic landing than to raise or lower interest rates to create dollar tides, because they are very confident that every time the US economy suffers a setback, it can heal itself.

In fact, this so-called self-healing is nothing more than the United States financially harvesting the world's wealth to treat the economic wounds of the United States.

Now, for the US authorities and the Federal Reserve, the most core issue is whether the US economy will have a soft landing or a hard landing? It is estimated that they are also uncertain in their hearts.

Because historically, every time the dollar cuts interest rates, Americans try to achieve a soft landing, but in most cases, they fall heavily to the ground, leading to a comprehensive outbreak of economic or financial crises.

So, what is the answer to this question?

The latest released banking report points to a new possibility: the US economy may not "land" at all.

The question arises, how strange! If it doesn't land, what will the US economy become like?Let's take a look at what the main warnings are in the U.S. banking industry reports.

1. Last Friday, reports from JPMorgan Chase and Wells Fargo both pointed to the same issue: a slowdown in credit card spending growth and an increase in delinquencies.

JPMorgan Chase's sales volume for household and personal credit card services grew by less than 7% year-over-year, lower than the nearly 8% increase in the second quarter and significantly lower than the over 9% increase in the first quarter.

2. Data from JPMorgan Chase shows that while U.S. spending on travel and entertainment has receded, retail consumption remains robust, indicating that consumer confidence has not wavered and consumers are not preparing for a worse economic environment.

Consumers are still buying, which means the economy will not go into recession, but inflation is also not far away.

3. The data shows that the credit card cancellation rate in the U.S. banking industry is on the rise, reflecting a relaxation of the credit environment, with the U.S. banking industry extending loans to a broader range of customers.

JPMorgan Chase's Chief Financial Officer, Jeremy, believes that overall, consumer spending patterns are robust, which is consistent with the claim that the consumer fundamentals are solid.

Some media analysis and summaries suggest that robust consumer spending, moderate relaxation of credit conditions, coupled with expected inflation relief and interest rate reductions, all provide support for the U.S. economy to "not land."

What does "not landing" mean?The so-called "no landing" typically refers to an economy that, after experiencing high growth, does not undergo the expected slowdown or recession but continues to maintain strong growth momentum. However, inflation levels are not effectively controlled, leaving the Federal Reserve with little room to lower interest rates.

In layman's terms, this "no landing" situation, as the name suggests, is like going up and not being able to come down. The economy won't get worse, but inflation won't go down and may even rebound, leaving the Federal Reserve with no way to lower interest rates further.

The root cause of this strange outcome lies in the long-term dematerialization of the U.S. economy, with the entire economic body continuing to operate on the basis of excessive money supply and soaring prices.

This also means that the U.S. economy will have to operate in a high-interest-rate environment for a long time. So, what about the $36 trillion U.S. debt? What about the Federal Reserve's $200 billion loss? What about the U.S. manufacturing industry, which is being tormented by high interest rates?

Of course, this situation cannot continue for long. The only choice for Americans in the end is to actively puncture the financial bubble, forcibly push the economy into a recession, and bring down inflation.

Americans were originally trying to avoid a recession, but in the end, they have to actively induce a recession. Isn't this a huge tragedy?