Market Videos

The Fed’s Losing Battle with Deflation

Even before Ben Bernanke, an American economist at the Brookings Institution who served two terms as Chair of the Federal Reserve (Fed), made the official declaration that the Fed is, in fact, targeting inflation, economists and governments around the world have counted on it to manage ever-increasing debts. Jeff Booth, author of “The Price of Tomorrow,” argues that they are fighting an inevitably losing battle. In this interview with Max Wiethe, Booth makes the case that secular deflationary trends will be the ultimate undoing of monetary policy and technology is driving this deflation at an increasing rate. He touches on several of the most culpable technologies, the potential issues society will face as a result, and the asset classes and businesses in the best position to take advantage of this trend. (Filmed on February 25, 2020 in New York.)
As a reminder, Bitcoin’s supply cap is one of its biggest selling points. Limiting the network to almost 21 million BTC, the cap makes Bitcoin a ‘deflationary’ currency.

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