The author of “The Price of Tomorrow,” Jeff Booth, 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 around.”
Jeff Booth Warns of the Danger of Continued Fed Rate Hikes
“Tomorrow’s Price” author Jeff Booth shared his thoughts in an Ask-Me-Anything session on Stacker News last week. Among the many questions he asked was whether he believes the Federal Reserve’s recent interest rate hikes will actually cause widespread deflation. Booth replied:
If they keep going up, it will ‘eventually’ turn into debt deflation, or credit annihilation. (to the great depression on steroids). Eventually, they will be forced to pivot.
“An important consideration for people is to think in terms of the lag effect…that is, 18 months from when actions are put in place,” he continued. “Remember when there is no inflation, transitory inflation, high inflation,” Booth added, warning:
This tightening really started in September and the Fed only reduced its balance sheet by 2.7% last year, with the consequent damage… If they continue…..ugly.
Booth published a book titled “Tomorrow’s Price: Why Deflation Is the Key to an Abundant Future” in 2020. In his book, the author explored “the problem of how to integrate technology-driven deflation into a system where inflation has been the norm,” according to the book’s review. Booth believes that “we can avoid an impending economic crisis if we can learn to accept what abundance brings, which could even be a world without jobs.”
Booth has long been a proponent of bitcoin. He said in May of last year: “Bitcoin will give individual rights and freedoms to the billions of people on our planet who should have had them in the first place.” The author of The Price of Tomorrow tweeted on Friday:
We live in a world of abundance, limited by a financial system based on scarcity. And although many still don’t realize it because they are still trapped in the system that requires scarcity, bitcoin is the key that unlocks abundance.
Do you agree with Jeff Booth on the Federal Reserve, debt deflation and bitcoin? Let us know in the comments section.
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