Jeff Booth Warns of Debt Deflation If Federal Reserve Keeps Hiking Interest Rates

The writer of “The Price of Tomorrow,” Jeff Booth, has warned astir indebtedness deflation, calling it a “great slump connected steroids,” if the Federal Reserve continues to hike involvement rates. He believes that yet the Fed “will beryllium forced to pivot.”

Jeff Booth Warns About Danger of Continued Fed Rate Hikes

The writer of “The Price of Tomorrow,” Jeff Booth, shared his thoughts successful an Ask-Me-Anything league connected Stacker News past week. Among galore questions asked was whether helium believes the caller Federal Reserve involvement complaint increases volition really origin wide deflation. Booth replied:

If they support hiking, it volition ‘eventually’ crook into indebtedness deflation — oregon recognition wipeout. (ala large slump connected steroids). Eventually, they volition beryllium forced to pivot.

“One important information for radical is to deliberation successful presumption of lag effect…ie 18 months from erstwhile actions are acceptable successful motion,” helium continued. “Remember erstwhile nary inflation, transitory inflation, precocious inflation,” Booth added, cautioning:

This tightening lone truly started successful September and Fed lone reduced their equilibrium expanse by 2.7 % past twelvemonth — with consequent damage…. If they continue…..ugly.

Booth published a publication titled “The Price of Tomorrow: Why Deflation is the Key to an Abundant Future” successful 2020. In his book, the writer explored “the occupation of however to integrate the deflation brought connected by exertion into a strategy wherever ostentation has been the norm,” according to the book’s overview. Booth believes “we tin debar a looming economical situation if we tin larn to clasp what abundance brings, which could adjacent beryllium a satellite without work.”

Booth has agelong been a proponent of bitcoin. He said successful May past year: “Bitcoin volition springiness idiosyncratic rights and freedoms to the billions of radical connected our satellite that should’ve had them successful the archetypal place.” The Price of Tomorrow writer tweeted Friday:

We unrecorded successful a satellite of abundance, bounded by a fiscal strategy built connected scarcity. And portion galore don’t yet recognize it due to the fact that they are inactive trapped successful the strategy requiring scarcity, bitcoin is the cardinal that unlocks the abundance.

Do you hold with Jeff Booth astir the Fed, indebtedness deflation, and bitcoin? Let america cognize successful the comments conception below.

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