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The author of \u201cThe Price of Tomorrow,\u201d Jeff Booth, has warned about debt deflation, calling it a \u201cgreat depression on steroids,\u201d if the Federal Reserve continues to hike interest rates. He believes that eventually the Fed \u201cwill be forced to pivot.\u201d<\/strong><\/p>\nJeff Booth Warns About Danger of Continued Fed Rate Hikes<\/h2>\n
The author of \u201cThe Price of Tomorrow,\u201d Jeff Booth, shared his thoughts in an Ask-Me-Anything session on Stacker News last week. Among numerous questions asked was whether he believes the recent Federal Reserve interest rate increases will actually cause widespread deflation. Booth replied:<\/p>\n
\nIf they keep hiking, it will \u2018eventually\u2019 turn into debt deflation \u2014 or credit wipeout. (ala great depression on steroids). Eventually, they will be forced to pivot.<\/p>\n<\/blockquote>\n
\u201cOne important consideration for people is to think in terms of lag effect\u2026ie 18 months from when actions are set in motion,\u201d he continued. \u201cRemember when no inflation, transitory inflation, high inflation,\u201d Booth added, cautioning:<\/p>\n
\nThis tightening only really started in September and Fed only reduced their balance sheet by 2.7 % last year \u2014 with subsequent damage\u2026. If they continue\u2026..ugly.<\/p>\n<\/blockquote>\n
Booth published a book titled \u201cThe Price of Tomorrow: Why Deflation is the Key to an Abundant Future\u201d in 2020. In his book, the author explored \u201cthe problem of how to integrate the deflation brought on by technology into a system where inflation has been the norm,\u201d according to the book\u2019s overview. Booth believes \u201cwe can avoid a looming economic crisis if we can learn to embrace what abundance brings, which could even be a world without work.\u201d<\/p>\n
Booth has long been a proponent of bitcoin. He said in May last year: \u201cBitcoin will give individual rights and freedoms to the billions of people on our planet that should\u2019ve had them in the first place.\u201d The Price of Tomorrow author tweeted Friday:<\/p>\n
\nWe live in a world of abundance, bounded by a financial system built on scarcity. And while many don\u2019t yet realize it because they are still trapped in the system requiring scarcity, bitcoin is the key that unlocks the abundance.<\/p>\n<\/blockquote>\n
Do you agree with Jeff Booth about the Fed, debt deflation, and bitcoin? Let us know in the comments section below.<\/strong><\/em><\/p>\n\n
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\nKevin Helms <\/h6>\n
\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
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\n<\/span>\n<\/p>\n<\/div>\n<\/div>\nImage Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n