#jeff booth

Jeff Booth

Fedi, the U.S.-based fintech which is led by the Nigerian bitcoin advocate Obi Nwosu, said on May 3 that it recently raised $17 million in a Series A funding round. The company said it will use the funds to help it launch what it called the “world’s first federated operating system.” Obi Nwosu said the Fedi Alpha version, which is targeted at the builder community, is set to be rolled out later…

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

The author of “The Price of Tomorrow,” Jeff Booth, has warned about debt deflation, calling it a “great depression on steroids,” if the Federal Reserve continues to hike interest rates. He believes that eventually the Fed “will be forced to pivot.” Jeff Booth Warns About Danger of Continued Fed Rate Hikes The author of “The Price of Tomorrow,” Jeff Booth, shared his thoughts in an Ask-Me-Anything…

Bitcoin-Only Will Rule Venture Capital – Bitcoin Magazine

“The smartest people in the world are working on Bitcoin, they’re not working on some other project,” Mike Jarmuz told Bitcoin Magazine. “They’re not working on altcoins or selling real estate in a metaverse fantasy land. Your medical records are not going onto some other thing masquerading as a blockchain. We view these as ridiculous and completely uninvestable ideas.” Jarmuz is the the managing…

"Our lives are defined by the positive impact we have on others."

Text from The Price of Tomorrow: Why Deflation is the Key to an Abundant Future, written by Jeff Booth:

“There are four components that make up GDP:

1. Consumer spending or personal consumption (C)

2. Investments (I)

3. Net exports (X)

4. Government spending (G)

The mathematical formula to calculate the components of GPF (Y) is simple: Y = C + I + X + G. GDP comes down to the interplay of those four components. Countries rely primarily on different levers because the inputs compete against each other. GPD tells you how each country is managing the four inputs together. As a by-product of that, it also tells you what a government values more to drive their economy and jobs. Higher-income countries typically rely on consumer spending as a primary driver of GDP growth, while lower-income countries are more likely to depend on net exports. These inputs compete against each other: for example, in countries with higher incomes, consumer spending naturally increases, but because their jobs pay more, their exports to other countries are disadvantaged by being more expensive.

This also means that when politicians talk of trade surpluses or deficits with their trading partners while only understanding one part of the equation, it is complete nonsense. Mathematically, the world’s trade balance must be zero: for every buyer, there needs to be a seller, and for every seller, there needs to be a buyer.

China runs a trade deficit with the United States, meaning that the United States imports more from China than it exports. Almost 70 percent of the United States’ GDP is made up of consumer spending; in China, consumer spending makes up only about 30 percent of GPD. In China, incentivizing production requires keeping lower wages (relative to the world), tax incentives for production and distribution, and investments in automation to achieve production that allows their exports to win on a world market. Conversely, to support consumer spending at 70 percent of the economy, the United States requires relatively higher wages, high credit creation with low interest rates (debt to finance that increased spending), and lower taxes.

Donald Trump’s tax incentives enacted November 2, 2017, had an effect of 1) increasing consumer spending and growth in the economy – in other words, I will give you more money, so you spend it, driving short-term growth in GDP and jobs; this 2) increased the trade deficit with China as consumers bought more imported products, and it also 3) increased the US budget deficit in 2018 to almost $800 billion. Over ten years, the Congressional Budget Office estimates that the tax cuts alone will add an additional $2.28 trillion of national debt to the US.

When the European Union adopted a common currency, the euro gave increased purchasing power to Greece, Italy, Spain, Portugal, and others that previously had lower valued currencies. People in Greece were able to buy more from Germany, which is the third-largest exporter in the world. German banks were happy to fund loans to Greece, and both countries grew their GPD quickly – one because of exports, and the other because of consumer spending. German banks were giving Greece German money to buy from Germany, with the expectation that Germany would later get even more money back – which Greece would have to come up with somehow. When it was realized that Greece might not be able to pay back the money, Greece was forced into a crisis. Had Greece walked away from the loans, it was not only Greece that would suffer. The German banks underwriting the loans would have to write them off, causing Germany’s economy to slow.”

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These Bitcoin Leaders Saw Ladders In 2020’s Chaos

2020 was unforgettable, especially for Bitcoin. To help memorialize this year for our readers, we asked our network of contributors to reflect on Bitcoin’s price action, technological development, community growth and more in 2020, and to reflect on what all of this might mean for 2021. These writers responded with a collection of thoughtful and thought-provoking articles. Click here to read all…

Financial Author Thinks Bitcoin Is “Likely” To Become the World Reserve Currency

Bitcoin has faced down many setbacks over recent years.

BTC trading has been banned by the Chinese government. Executives from Goldman Sachs and other institutions have come out against the cryptocurrency. And there still is a broad sense of mystery that surrounds Bitcoin and cryptocurrencies in the public, thus limiting adoption.

Yet there remain prominent financial analysts and authors…