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

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Jeff Booth, author of “The Price of Tomorrow,” warned about credit 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 pivot.”

Jeff Booth warns about the danger of continued Fed rate hikes

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Jeff Booth, author of “The Price of Tomorrow,” shared his thoughts in an Ask-Me-Anything session on Stacker News last week. One of the many questions asked was whether he believed the recent Federal Reserve interest rate hike would actually cause widespread deflation. Booth replied:

If they continue hiking, this will ‘eventually’ turn into credit deflation – or credit annihilation. (ala Great Depression on steroids). Eventually, they will be forced to pivot.

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“An important consideration for people is to think in terms of the lag effect … ie 18 months when the action kicks in,” he continued. “Remember when there’s inflation, temporary inflation, hyperinflation,” Booth warned, saying:

This tightening actually started only in September and the Fed only reduced its balance sheet by 2.7% last year – with losses later…. If they continue…..ugly.

Booth published a book in 2020 titled “The Price of Tomorrow: Why Deflation is the Key to an Abundant Future”. Booth believes that “we can avoid the coming economic crisis if we can learn what abundance brings, which could be a world without work.”

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Booth has been a longtime supporter of bitcoin. He said in May last year: “Bitcoin will give billions of people on our planet the personal rights and freedoms they should have had in the first place.” The Price of Tomorrow author tweeted on Friday:

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

Do You Agree With Jeff Booth About The Fed, Debt Deflation And Bitcoin? Let us know in the comments section below.

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