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
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"Tomorrow's Award" by Jeff Booth, cautioned against deflating the debt, if the federal reserve continues to raise interest rates. He thinks the Fed will finally "be forced to pivot."

Jeff Booth cautioned against the danger of further rate increases from the Federal Reserve.

The author of "Tomorrow's Award," Jeff Booth, shared his thoughts at a Ask Me-Anything session on Stacker News last week. Among the many questions asked, he was asked if he thought the recent interest rate hikes by the Federal Reserve would cause widespread deflation. Booth replied:

If they continue to increase, it will turn "at some point" into debt deflation, or it will eliminate credit. (ala great depression on steroids). Someday they're going to have to change course.

'An important consideration for people is to think in terms of effect of delay... i.e.. 18 months from the moment the actions are put into action,' he went on. "Remember when there is no inflation, transient inflation, high inflation," Booth cautioned:

This tightening really didn't begin until September, and the Fed only cut its balance sheet by 2.7% last year, which caused damage... If they keep... you know...

Booth has published a book called "Tomorrow's Price: Why Deflation is the Key to a Bountiful Future" in 2020. In a book he wrote, the author explored "the problem of the integration of technology-induced deflation into a system in which inflation has been the norm", according to the book overview. Booth believes "we can avert an imminent economic crisis if we can learn to embrace what abundance brings, which might even be a jobless world."

Booth was a Bitcoin supporter for a long time. He said in May last year: "Bitcoin will give individual rights and liberties 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 Thursday:

We live in a world of plenty, limited by a scarce financial system. And while many still do not realize it because they are still trapped in the system in need of shortage, Bitcoin is the key that unlocks abundance.

Do you agree with Jeff Booth with respect to the FED, debt deflation and bitcoin? Please let us know in the comments below.