Jeff Booth Warns of Debt Deflation If Federal Reserve Keeps Hiking Interest Rates – Economics Bitcoin News
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Jeff Booth, author of “The Price of Tomorrow,” has warned of debt deflation, calling it a “great depression on steroids” if the Federal Reserve continues to raise interest rates. He believes that eventually the Fed will be “forced to turn.”
Jeff Booth warns of the danger of continued Fed rate hikes
Jeff Booth, author of “The Price of Tomorrow,” shared his thoughts in an Ask-Me-Anything session on Stacker News last week. Among the many questions asked was whether he believes the Federal Reserve’s recent rate hikes will actually cause widespread deflation. Booth replied:
If they keep hiking, it will “eventually” turn into debt deflation – or credit default. (sub major depression on steroids). Eventually they are forced to turn.
“One important consideration for people is to think about the lag effect … that is 18 months after the actions have started,” he continued. “Remember, when there is no inflation, transient inflation, high inflation,” Booth added, warning:
This tightening didn’t really start until September, and the Fed only reduced its balance sheet by 2.7% last year – following the damage…. If they continue… ugly.
Booth published a book titled “The Price of Tomorrow: Why Deflation is the Key to an Abundant Future” in 2020. In the book, the author explored “the problem of how to integrate technological deflation into a system where inflation has been the norm,” according to the book’s overview. Booth believes, that “we can avoid the looming economic crisis if we learn to accept what abundance brings with it, which could even be a world without work.”
Booth has long been a supporter of bitcoin. He said in May last year: “Bitcoin gives individual rights and freedoms to billions of people on our planet who should have had them in the first place.” The Price of Tomorrow author tweeted on Friday:
We live in a world of abundance, limited by a financial system built on scarcity. And while many don’t yet understand it because they are still trapped in a system that demands scarcity, Bitcoin is the key that unlocks abundance.
Do you agree with Jeff Booth on central banking, debt deflation and bitcoin? Let us know in the comments section below.
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