Jeff Booth warns of debt deflation if the Federal Reserve continues to raise interest rates – Economics Bitcoin News

The’author of “The Price of Tomorrow“, Jeff Booth, warned of debt deflation, calling it “a Great Depression on steroids” if the Federal Reserve continues to raise interest rates. He believes that the Fed “will be forced to pivot“.

Jeff Booth warns of the danger of continued Fed rate hikes.

The author of “The Price of TomorrowJeff Booth shared his thoughts in a session entitled “The Price of Tomorrow[1945-1998]”.Ask-Me-Anything” on Stacker News last week. Among the many questions asked, he asked whether he thought the Federal Reserve’s recent interest rate hikes would actually cause widespread deflation. Booth replied:

S’they keep raising rates, it will eventually cause debt deflation – or a credit wipeout. (like 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 the time the actions are implemented“, he continued. “Remember no inflation, transient inflation, high inflation“, Jeff Booth added, warning:

This tightening didn’t really start until September and the Fed only reduced its balance sheet by 2.7% last year – with the damage that follows….. If they continue it will be ugly.

Jeff Booth published a book entitled “The Price of Tomorrow: Why Deflation is the Key to an Abundant Future“in 2020. In his book, the author explores “the problem of integrating technology-induced deflation into a system where inflation has been the norm“, according to the book&squor;s overview. Jeff Booth believes that “we can avoid a looming economic crisis if we can learn to embrace what abundance brings, which might even be a world without work.“

Booth has long been a supporter 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 Price of Tomorrow author tweeted Friday:

We live in a world of abundance, bound by a financial system built on scarcity.

and while many don’t yet realize it because they are still trapped in the system requiring scarcity, #Bitcoin is the key that unlocks the abundance.

— Jeff Booth ⚡️ (@JeffBooth) January 14, 2023

We live in a world of abundance, limited by a financial system built on scarcity. And while many don’t realize it yet because they are still trapped in the system requiring scarcity, bitcoin is the key that unlocks abundance.