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

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

The writer of “The Price of Tomorrow,” Jeff Booth, has warned about debt deflation, calling it a “great depression on steroids,” if the Federal Reserve continues to hike rates of interest. He believes that finally the Fed “will be forced to pivot.”

Jeff Booth Warns About Danger of Continued Fed Rate Hikes

The writer of “The Price of Tomorrow,” Jeff Booth, shared his ideas in an Ask-Me-Anything session on Stacker News final week. Among quite a few questions requested was whether or not he believes the current Federal Reserve rate of interest will increase will truly trigger widespread deflation. Booth replied:

If they preserve mountaineering, it’ll ‘finally’ flip into debt deflation — or credit score wipeout. (ala nice despair on steroids). Eventually, they are going to be compelled to pivot.

“One important consideration for people is to think in terms of lag effect…ie 18 months from when actions are set in motion,” he continued. “Remember when no inflation, transitory inflation, high inflation,” Booth added, cautioning:

This tightening solely actually began in September and Fed solely decreased their steadiness sheet by 2.7 % final yr — with subsequent harm…. If they proceed…..ugly.

Booth printed a e book titled “The Price of Tomorrow: Why Deflation is the Key to an Abundant Future” in 2020. In his e book, the writer explored “the problem of how to integrate the deflation brought on by technology into a system where inflation has been the norm,” in keeping with the e book’s overview. Booth believes “we can avoid a looming economic crisis if we can learn to embrace what abundance brings, which could even be a world without work.”

Booth has lengthy been a proponent of bitcoin. He mentioned in May final yr: “Bitcoin will give individual rights and freedoms to the billions of people on our planet that should’ve had them in the first place.” The Price of Tomorrow writer tweeted Friday:

We stay in a world of abundance, bounded by a monetary system constructed on shortage. And whereas many don’t but understand it as a result of they’re nonetheless trapped within the system requiring shortage, bitcoin is the important thing that unlocks the abundance.

Do you agree with Jeff Booth in regards to the Fed, debt deflation, and bitcoin? Let us know within the feedback part under.

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