Jeff Booth: Consequences of Deflation?
Tom welcomes a new guest to the show, Jeff Booth. Jeff is an author and technology entrepreneur.
Jeff discusses the central thesis of his book “The Price Of Tomorrow.” He explains how technology is moving faster than most people realize and why it’s incompatible with modern central banking. Tech will result in massive changes in how we think and operate economies. When deflation happens in a debt-based society, that debt becomes more expensive and can’t be repaid.
No matter what action governments decide, the consequences are coming and playing out around the world. If banks don’t lend, then governments will bypass the banks. In the next phase, central banks and governments become competitors.
Structural deficits today are so staggering that the debt can’t be repaid. The Fed has transferred risk from companies to their balance sheet. They are stuck in a debt trap, and they either have to have a deflationary depression or inflate away the debt.
Today if real estate falls, the entire system will become impaired, so they continue to prop it up. The rich have most of the assets that benefit from these policies.
Higher prices result in political instability as populations become more demanding. What looks like a bright spot in the economy in recent months is now over.
He discusses gold and bitcoin and their benefits in preserving wealth. Jeff points out that Bitcoin is evolving very quickly.
Big changes are coming to the West, and it will be painful over the next ten years because the credit system must unwind. Hyperinflation will be hard to stop when and if it begins. Regardless, there will continue to be wild swings around the world.
Talking Points From This Episode
- Why technology and innovation can outpace belief.
- Network effect, Bitcoin, and new technologies.
- Deflation and efficiency should free up our time.
- Market manipulation is masking the benefits of tech.
Time Stamp References:
0:00 – Introduction
0:35 – Technology is moving fast!
2:00 – Comparing technology trends.
4:00 – Deflation and abundance.
6:45 – Centralization of power.
7:25 – Lending standards and free markets.
8:40 – Leverage, staggering deficits and repayment.
11:10 – Central bank policy and halting creative destruction.
14:20 – Currency debasement and delayed stimulus.
18:10 – Deficits and consequences.
19:55 – Protecting your wealth.
22:15 – Golds role in a world of digital currencies.
24:50 – Comparing internet growth and digital currency.
26:45 – System has to change.
30:10 – Wild swings that will catch people off guard.
33:00 – Efficiency will drive abundance.
Amazon Book: https://www.amazon.com/Price-Tomorrow-Deflation-Abundant-Future/dp/1999257405
Jeff Booth is a visionary leader who has lived at the forefront of technology change for 20 years. He led BuildDirect, a technology company that aimed to simplify the building industry for nearly two decades through the dot-com meltdown, the 2008 financial crisis, and many waves of technological disruption.
Jeff has been featured in Forbes, TechCrunch, Inc.com, The Globe and Mail, BNN, Fast Company, Entrepreneur, Bloomberg, TIME, and The Wall Street Journal. In 2015, he was named BC Technology Industry Association’s (BCTIA) Person of the Year, and in 2016 Goldman Sachs named him among its 100 Most Intriguing Entrepreneurs.
He is a Founding Partner of OtioLabs, Co-Founder of addyinvest.com and NocNoc. He serves on the boards of Terramera, Cubic Farms, LlamaZOO, Synthiam, and the Richmond Hospital Foundation along with numerous advisory boards.
He has been a Young Presidents Organization member since 2004 and contributes time as a Founding Fellow on the Creative Destruction Lab.
In his downtime, Jeff can be found at the lake playing his guitar around a campfire with his family and friends, enjoying watersports, or skiing at the local Vancouver mountains. He is also dedicated to learning and reads about 50 books a year.