How Everyone Is WRONG About Inflation | Jeff Booth

I've been following you, listen to your interviews. A lot of people maybe don't know. So why did you give his quick background? I kind of like who you are and what led you to this book. I'm a technology entrepreneur for first and foremost, started a number of companies, one that grew to over half a billion dollars in market, capp Um and Boards and and uh many technolog g companies,

and founder a number of different technology companies. And I think, and I would say, I have a front seat of where technology is going because because I'm involved in so many technology companies and I'm a reluctant author. I didn't want to write the book. Okay, I wrote the book because because I looked at where society was going because of this, where technology was going out, where where technology going The government's trying to stop where technology was going.

And I looked at the impact of society and looked at my kids, and I said, what type of world will I grow up in? And nobody was talking about kind of this problem and I was. I was super frustrated. So that's actually why I wrote the book. Yeah, great, Yeah, it's such an important conversation and it's and it's pretty deep one that has a lot of different facets and

areas to it. But um, if we talk about kind of the technique, I want to talk about deflation overall, but we'll start with kind of the tech disruption of that deflation. UM. I know and probably a lot of people know. Like when the presidential kind of cycle was just getting started, we had a candidate Andrew Yang, and he was this tech entrepreneur and he was telling the whole world that tech was going to take everybody's jobs.

AI was going to take everybody's jobs. And so because of that, the government needed to start paying everybody to not work. And I guess you see the exact opposite of that. So what do you think about that in part of Andrew's platform, at the part where technology how fast technology is moving and it's going to take jobs, He's completely right, right, that's how uh, that is what's coming, and it's been coming for some time. If you if you just think, what is the point of technology, it's

two free our time. Right. No ceo that no no company I work with, gets up every morning and says, I have an idea for a great technology company. I'm gonna make it more expensive for people. Right. The point is you're using technology to recreate industry, reason make them more efficient, right, And and the byproduct of that takes jobs away, and the byproduct of that is deflationary. So

so the byproduct that reduces prices. Now that's a that's a super interesting point because I mean I've I've studied like the technological revolutions, there's been like five the last two and fifty years, like the first one, really like the industrial revolution, right, and so um, they created equipment to help get things done faster in larger quantities, right, whether that's equipment for the field to help people get field work done faster, whether that was assembly lines to

get cars done faster, whether it was telephones to get communication done faster. But everything as you're as you're saying, everything is made to make work less, are less. And let's stay on that point for a second, because there's

an argument. You could make an argument that where we are in technology today, like the Industrial Revolution, detector they what what will happen as you automate a whole bunch of things and then you've created a whole bunch of new industries, that world will replace more jobs than they described and create a creative destruction. There's you would have to if you're going to accept my thesis, you would

have to debate that topic. Right, is there a possibility that this could create more jobs in the future where we are in technology? And that's where I think a lot of people look back to history and say it's worked before. Right, You've gone through these periods, and those periods were always really tough. They always ended kind of in wars, right because you because a whole bunch of people but were being left out. Right, governments inflated against that,

and you had revolutions and turned into wars. So forget the getting through that part. Let's just argue, let's just debate that topic. Could there me more jobs in the future. And I don't think anybody that's working in technology believes that could be true today. Oh really, that's interesting because because it would. And and if if that, if you find somebody, I'm happy to debate them on your show.

Because if you know how fast, if you know what's happening in artificial intelligence, and artificial intelligence is replacing labor at a rate we've never seen before. At first, artificial intelligence needs a bunch of PhD researchers who are creating the algorithms. But then the algorithms see things we don't see, and it moves faster and faster. So the byproduct of what's happening here is when I first started my first company, it took me about five million dollars in capital to

create version one of our website and transportation system. That same that same website transportation system is available to shot

on Shopify today. Actually way better for fifty dollars a month. Yeah, right, and and so so so you're building on a stack that is moving so fast, little pieces of technology that are woven together that that costs almost nothing um for entrepreneurs to and and and why do you why do you think everything on your phone is free, right, right, we celebrate deflation and all of the monopolies with credit right, and the consumers if you look at Apple, if you

look at Um and all those apps competing for your attention, have entrepreneurs on the other side competing for your attention, and they drive the price down to free. You don't you don't pay for your flashlight up. You don't pay for your guitartoon or you don't pay for a million or your camera anymore. You don't pay for anything um And that's the point. It just drives abundance just to humanity and price prices coming down. Yeah, I think you know.

I I think people know that kind of inherently, but they haven't really thought through this. So. I mean when I was a kid, we had the jets in cartoon, right, and like they had like robots that were the maids and they were doing their housekeeping, and everybody thought, oh my gosh, when I grow up, I'm gonna have a robot and they're gonna do all my work for me. Like didn't we all want that? But but now we're

threatened by it somehow, right, I guess is what you're saying. Well, we're threatened by it because we created a system that requires growth and inflation. Right, It's and we we got lulled into a belief that that was the way the world worked, and like a fundamental law of nature that you need inflation, right, And we were taught in economics in school. We were taught it. And and so what is inflection? Yeah, well let's let's save let's save that for a little bit, because I think that is the

big thing that the discussions about. Right. It's like, don't we want deflation, but we have a system that needs inflation, and so the problem is what our once are versus what we have don't fit. But before we jump into that, um, just sticking back on the deflation thing for a minute. Uh, and I guess just generally, so we could kind of frame this for everybody when we're talking about deflation, what what are you kind of talking about? Generally? Um, So

people may think like deflation, like the economy crashes. People might think deflation, prices go down. When we're talking about technology and this deflation, what do you what do you? How do you? So? So simply, deflation is when your money is worth more all the time, Right, So the value or your currency rises in relation to goods and services because and services go down, your value of your

and relate. So so you're purchasing power goes up. Right, And if you ask any single person that question, would they want that? They would say, Wow, that's excellent. Right, that's what you're selling. That's what you want because it frees your time, all of your time to as your purchasing power goes up your time, you get an impact on your time. That seems like a pretty good thing,

right yeah. Yeah, And as we roll that up into economy, we say, well, that's a bad thing because it just because and the truth it is a bad thing to the existing economy we've built because the existing your economy we've build requires inflation and it's it's almost a Ponzi scheme of credit. Yeah, it can't be paid back. And if you allow inflation to happen, the debt has to be reset and there and it becomes it becomes a depression.

I think, Um, so I want so we'll talk about the inflation, we'll talk about the competing systems, and then I want to get into why maybe there's people, um that resist against that because um, it's not just the system that's resisting against it, it's also people. But before we jump into that, so back in the deflation, I mean, I think we frame that perfectly. And I've actually said that many times when people ask, well, don't we need inflation?

And I say, let me ask you a question, would you rather her money by more goods and services in the future or less? Of course, everybody once more. I mean it's like, it's like the most rhetorical question ever. Um, so we want that, and that sounds good, but the thought of putting people out of work, that sounds bad. But don't we want don't we create the technology so we can or less? And I think I think if you kind of understand, um, how you know the system works,

how from bartering to money exchange. Um, it was about specialization. And if I can specialize in growing food and you can specialize in raising animals, then then you save me time, I save you time, and we trade like it starts at the most basic level and we're only growing past that. Um. And that makes sense. Um, But you so I guess let's dive into the system now a little bit. So the system is set up inflationary, which means we're kind of like on this treadmill, we have to kind of

keep always moving forward. But I guess maybe what you're saying is that if technology, if if we allowed technology to be deflationary, um, we could theoretically be working less and achieving the same thing if we didn't have this inflationary system. Is that we have a massive we have a massive ability to free our time, right, and and and and let's just forget what I want, forget what

you want. Let's just look at the facts, right, forget what the central banks walked right, the fact Sometimes there's a structural change in business. You see, you've been an entrepreneur, I've been I'm an entrepreneur. In business, creative destruction happens, and it happens because it typically the incumbent can't see the structural change right, and they can't move their business

fast enough. They even sometimes in case of Kodak, they invented the digital camera and twice the sass and tried to get it to get Kodak executives to understand the power of the digital camera and how it would replace their business. But they sold, They sold film, right, and they couldn't see their way through to what what Kodak could become. And you go back to that abundance thing I was talking about, we use we use way more

photos today. Yeah, there's a whole bunch of new businesses that are created around photos, like Facebook, Google, Just the amount of new businesses that are around photos, and we use an abundance of them. With Instagram, they're they're free. Yeah, right, they're they're they're completely free. So we used to have to spend a bunch of money to take photos. I remember buying a roll of film taking it pay to get a process and you get to be very select

if you had shots or whatever. Right, and today now I can just take as many of the one for free and pick the best one and then and delete the rest of That saves me a bunch of money that I don't have to go make now exactly. And so so in that in that example, you'll see the same thing. So now roll that up instead of a business example, roll that up to an entire system that we all live in. Right, and you have a system that's always required inflation, and we were taught that it's required,

and in fact, it was designed to require inflation. And in that system, if you if you if you leverage with debt and pay the debt back later with cheaper money. Because it's you destroy the value of the currency, you're a winner, right, And so if you keep that run, that means asset prices keep rising and you if you can leverage that, you're a winner. So on that side, you're now that system competing against the deflationary the rate

of technologies driving deflation. Continuing to do that deflate to that system is essentially pushing on a string. You create your massive debt creation, massive monetization. And if all the asset winners are also the belts, all the asset owners, you be a whole bunch of billionaires and everything they have. They have all the houses, most of the stocks, and everything else. And if you do that, they you enriching them at a crazy rate. Yes, let's go straight up.

And and all the people who don't have assets, because you're destroying the value of currency, okay, and your currency value is going down, you're picking their pocket to give them the money, and so you get social disruption. Right. And what I would go say is it doesn't matter ultimately what we want um because what we want is based on first principles. It matters what physics or what what Where the trend is taking us, and inflation is

where the trend is taking us. And so we have a couple of choices we could make to do that. Andrew Yang's who you mentioned. Choice is this in a nutshell. We're going to keep on pushing asset prices up. Assist. The system requires inflation, and we're going to do everything we can to keep us the prices high and then the very because we did that the very same people that we killed, because we did this right, We kept rents high we could because we let didn't let the

system have a free market. The very syst those people are gonna come to government. We're gonna make government bigger to give them money to pay for the prices we uh us that's we artificially create. It's just illogical, right, and capitalism doesn't work that way, right, So um, and and so you have all roads U B I and everything. I just I totally understand why people want you be I because the system is doesn't work right now. So you're going to out you're gonna but but it won't.

That won't. That's not the fix, right, That is not the fix. Yeah, So um, you have the system that creates inflation. So we talked about the FED basically printing money which is now pushing up asset prices um. And then so you're punishing the people, or I shouldn't say punishing. You're rewarding the people who have the assets. But then you're taking some of their profits and then redistribute back down to the people um. In other word, in other words,

the government is the entire economy. The government. It looks it's communism. Yeah, it's socialism to communism. And we know how managed markets were, We know how manages just out his work. Right, Well, you and I you and I do. Yeah, you're you're robbing the entrepreneurial process of creatives destruction and and and you have subpart subpart gains to your economy.

So you have to trust and been evlevent benevolent leaders and and and once you grab power, whether your generation has been evolent or the next one is once you that doesn't work. History shows us over and over that that path is just just a path to thugs controlling everything. Yeah, so you mentioned something called creative destruction and something that I've talked about a bunch of times. And so basically that means that the new way kills the old way.

So I've created a new system that gets rid of an old system. Email was created and it killed the US Postal service or whatever it is, something like that. Um And and then you also mentioned capitalism or like a free market, and so in a free market we would typically see creative destruction. And as you said, code is too big, so a small instagram comes up and puts them out. But I think maybe also as the as the government gets bigger, the market is less and less free. I don't I don't see it as a

light switch. It's not like we're free. We're not free, right, It's like degrees of less free. And as we've got less free, the corporations use government to entrench their positions and slow, if not stop, creative destruction. Do you see that? Yeah? Absolutely, Again, that's a feature of the system, not about so so so today. Let's let's a lot of times in this type of political everything gets politicized, right, and you people

take sides and they can't see anything. Okay, let's just imagine you're a CEO of an airline, right, and and you made made a bunch of money this year and the government has a policy of negative interest rates, are near zero interest rates, and they effectively are saying, if you hold cash on your balance sheet, we're going to penalize you through inflection because it's gonna be worth next us. Next year, it's gonna be worth less than next year. So we're gonna hurt you if you hold cash on

your balance sheet. So what would you do as a CEO? Probably buy back your stock, right, right, You're going to try to get a return on that money because the government is implying that we're not going to give you a return by saving for a any day. Right. So, now when you have an event where you need all of these people are going to be unemployed. Right, your airline is gonna go broken, everything else, what do you do?

You go back to the government and instead of letting you fail, they inject a bunch of money to continue the whole the whole game. That game is in housing, it's in everything. So the government has prevented a free market society. Yeah, and or it's kind of like going back to being kids, like watching Star Trek and they

could like they could beam themselves to another place or whatever. Right, So imagine like if an airline came across some technology where you could just beam yourself, you didn't have to get an airplane, and people would be able to do this for really, really cheap, and the airline see was like, oh my gosh, I could put us out of business. That could eatually all our profits. And there's really a

way to monetize it because it's so cheap. So let's just use the government to say that that's unsafe, will create policies to say that that type of travel is banned, and we'll to force people to go in an airplane.

Maybe that's kind of how it is, You're I'm laughing, because yesterday I saw a product demo from I can't say what, I can't say who it is and everything else, but from a friend of mine to a technology later a CEO of a different technology company, and that product demo had something that I would say, feels like a tele teleporter. Really what zoom is today? Think about think about an actual experience that feels totally different and it's

native to native to a screen. It's so what's coming is what's not widely distributed yet, but it is available with technology would flow people's minds. Wow, that's incredible. So we didn't we didn't plan that UM and we've even seen it. So like obviously, if if anybody's watching this channel,

they know I'm a big proponent of of bitcoin. I pound the table on that all the time to fight against what the FED is doing UM and what we've even seen UM from I mentioned earlier Christine Legarde from the ECB, she came out and said that we I forget the exact quote, but basically she said that we need to stop this UM technology because it's going to disrupt the entire financial system. But yes, isn't that the point? So there purposely she's even saying it, they're purposely going

to try to shut down technology. I guess so so UM yes, And that's where, like you all of these roads again, if you come back to first principles, we are going to get into flesh. The only question is UM when so so so? So? Right now, I would say we have a deflationary environment and the only thing stopping that is massive liquidity injections. Most of that liquidity injection is going straight into asset prises, bitcoin, gold, housing, everything else. So it's driving those up and people in

those are thinking they're going to go up forever. And and so so if we slow you can see what's happening in stock market right now. It's bouncing around, and it's you see a whole bunch more volatility in the US right now, and in the stock market. That's because there's no new stimulus. If if technology is creating deflation at this rate, then the debt creation has to be the amount of stimulus um and it's exponential, right, More and more technology is creating that that deflation, then it

needs to be exponential monetary using. On the other side, any any stop in that exponential monetary using or printing of money, the whole thing collapses in it in the unwind would be so crazy from where we are. Stock prices would lose eighty percent of their value. Housing the if you think over the last twenty years, to stop deflation, trillion dollars of debt was created and and so so you had two fifty trillion dollars of debt running an

eighty trillion dollar global economy. And that was before COVID, right, and and so that and trillion of that debt came in the last twenty years against that that path. And so when I wrote the book, I predicted what would happen next, right, and and all of these things any blepin growth because because the inflation requires of you after you have to keep going, and to do that, you're just piling more and more. So four dollars of four dollars of debt creation for one dollar of growth that debt,

that debt. If you run kind of what the Fed is doing today and you assume that debt has to be paid back, right, then then it's more disinflationary right right, because it's not going into useful I think it's going into asset prices. It's going into and it has to be paid back tomorrow. So taxes are going to go way up, right, And so you pulled them in from the future. And that's where that we're trapped right now. It's such a big problem. And if you let it unwined,

you have a depression, global depression. And if you keep doing if you keep doing it, you have outbreak of currency collapse, wars, everything out like it's just it's it's really ugly on both sides. Yeah, So we have I I see kind of two problems. One the technology, as you say, is causing deflation. It's causing things to go down. Um, there's charts. I'm sure you've seen them. I've seen them. I wish I had them handy, I can put them

up on the screen. But basically it shows like different asset prices and you can see you know, a technology TVs, telephones, et cetera, all going down, but anything that the government controls, healthcare, education have gone up. And so you have like this this is like almost like v shape, where like technology is going down and government stuff is going up. So you have the technology pushing prices down, as you say,

causing deflation. But back to what you said about the debt, I think there's even a bigger problem because the more the bigger that balloon gets, the harder it gets to reinflate that balloon. And what happens is in order to print a trillion dollars, you have to go through you know, government and Congress and all these things to get the trillion dollars printed. But a trillion dollars can disappear like that someone just a default on bankrupt and like it's

just gone the count. So it's way easier to get rid of it than it's laid it back up and and let's let's stay with kind of that for a second, and again go back to first principles and ask where questions Because everybody thinks, oh, no, real estate always goes up, right, ask yourself this, without a hundred and eighty five trillion dollars of new money over the last twenty years, what

would real estate prices be? Well, when you adjust for inflation, you see a whole different picture, you see, So if you would adjust for the cause of those real estate prices going up, you can see them, you can you can see what's happening. So we and then the next question has to be can you keep doing that? Right? Can you keep doing that at that scale? And if you can't, then what will what will it look like? Because you're right, once those defaults happen, it's just on

wines really fast. Now, I suspect that the governments are not going to let on their watch right now all over the world, they're not going to let that happen.

So what choice do they have? So today the federules prohibit kind of helicopter money, m m T. Everything else, so you'd be a They has to go to the banks, and it kind of trickles down at the top level, and and and and and the whole bunch of the population who because housing prices as are giving an example, sorry, before that, my my lakehouse that I'm currently in seven years ago, I tore down my small house that was

here seven years ago. That house rented in the off season for six hundred dollars a month, and it was hard to get renters for six dollars a month. Down the block, there's another cabinet looks exactly like that that is now rents for fifteen a month seven years later. Yeah, So, so what that means and house prices have gone crazy and everything else, but what that means to to if your wages haven't gone up by double more than double,

lost purchasing power. And there's a whole bunch of people that don't have assets that are in that that are in that camp. And so it's pretty logical that they would come and say what's going on and vote for people who will say I will give you money. Yeah, yeah, I think that's what you just said. They're like purchasing power. And I think if if people could look more in terms of purchasing power as opposed to an asset price in their in their fee currency. So you know, in America,

we're looking at all priced in US dollars. In Canada maybe U S dollars or Canadian dollars or whatever. But when you only look at it in the v a currency is being inflated, you think, oh, my house went up and I made money or whatever. But when you look at it in purchasing power, which we started out with saying do you want to buy more or less in the future, you see a whole a totally different picture. So,

so all inflation is is it's a hidden tax. Yeah. So, so if governments to carry on the services governments have without inflation, they would have to charge you the real taxes, right, and you would you would say government is too big, it needs to be smaller because you wouldn't put up with that that type of tax, right right, And so

they hide a hidden tax and inflation. Yeah. But the problem with that hidden tax is it's on society is most unable to pay, yeah, right, and so so the But when you think about this, how crazy is it that the cure that the society is racing, especially the people left out, are racing to socialism as a cure for for the same thing that created it like you.

So governments are creating as st price in flesh, and they're creating all of the prices to go out, and then they need more money that they don't have to give people a bunch of money to pay for the pay for the same prices that we're artificially inflated in the first place. Right, So to me, it's madness. And I don't see how people could want to vote for more of the problem that caused it in the first place.

But they obviously are. Why do you think that is because because they haven't gone They haven't they're not as deep in this as you are, right, they're not as That's that's one of the things where what we're talking about right now, in inflation, it goes against every natural fiber ever being because we were taught something different. Well, it goes against not it go doesn't go against our

natural being, it goes against our education. Our education, right and instead of and a lot of times you build foundations of knowledge and everything else is built on top of that and everything else, and you don't question your foundations of knowledge very often, right, And so if you're not intellectually curious enough to say, is this true? Right, then, then you'll just believe. It's easier to believe somebody like Andrew Yang or something saying, there are the problem, we

need to give you money. It's just easier because it matches your picture of Instead of questioning should we have inflation? Should we not have inflation, which is a hard thing to go go down for most people, it's easy to build on top of a narrative that people already understand. It's actually the same thing that create such an opportunity to entrepreneurs to question why are they doing it that way? Right?

That's it's exactly the same thing that creates creative destruction because somebody, an entrepreneur, looks at the world and says, that makes no sense anymore. Why am I carrying this thing? Why don't I just put in a wheelbarrel? Exactly. Yeah, that's a great point. And uh, it's one that I do just want to just drive home because I I believe in our natural being. I believe that we're all driven towards deflation. We're all looking for an easier way

to do things. From the beginning of time, a division of labor. Hey you do this, I'll do this. Let's work together, right, like, hey, let me put in a wheebarrow Like I said, so, I think naturally we all gravitate towards free trade, free market, and deflationary things. But it's the education system that has continued to push this narrative indoctrination, if you want to call it that, I

guess because their system demands it depends on it. And I would say most of those people, even at the top that you're saying, when it's easy to say that group of people at the top, most of those people haven't asked this question. A very senior economists who is in this circle right and everything else? Who's friends are all of the people that monetorization, everything else read my book called me and said, how do you see? How?

How did you see something that the entire world miss misses, including I question everything that I teach and economics question and how did you see? How did you see it? But that's the thing. It's natural for somebody outside the system to be able to uh, to quite to question it because you're you're not you haven't been indoctrinated inside something that you So you're asking you're asking a deeper question, looking for the true answer instead of looking to build

on top of that foundation and knowledge. Yeah, that's a great point. I want to talk about, as you said, the unwind and it not being smooth and and not being good. I want to talk about how you see this kind of playing out. But before we do, I just want to say one other thing is that, UM, you know we talk about I think people have been indoctrinated and they've been just trained to just kind of

look at it one way. And then Andrew jankas, I'm gonna give a thousand bucks a month, and everyone says, yes, sign me up. I'll take the thousand bucks a month. I don't believe in that, but I mean, if we're gonna pass it out, I guess then something to me as well. Right. But UM, it seems that today, UM you also mentioned abundance, people don't have this abundance mindset. People have the scarcity mindset. And so UM it seems

that with this deflation, UM, jobs get lost. I can't pick cotton anymore because now machine does it, UM, and so whatever. And yes, there will be more jobs created, and you said there was a debate about that, But it requires me or that person to go learn new skills and I have to do something different, have to try harder, and it's so much easier if I just stay home and watch TV and they just give me

a thousand bucks. And it seems that we've had this massive shift where we have a large percentage of the population now that doesn't want to learn new skills or figure out how to offer the good and service to the economy. They wanted to be taken care of. I mean, do you see that as like a big push back

to this whole system? Isn't that an irony that we're talking about this in the United States, which went through you and I growing up Russia and the United States, I know, and unbelievable, And it's unbelievable that that essentially

the United States wants to be Russia. Right when when when you have when when you know what history looks like, they're and and a state can't manage is effectively there's only two ways to manage that many people globally, right, free markets, which or or control essentially or the biggest thug right, and and only two ways um and so neither is perfect, right, But so one thing about capitalism is it does if you just go kind of around the very ends, right, capitalism probably requires some sort of

checks and balances, so uh to stop it from running away those checks and balances. On the other side is where U, B I and socialism go to write that looks at community and it robs from capitalism. And because nobody's asking where it does that. If you're if you're ruining the innovative potential of the free market by by saying everything goes to government, it can government outcompete the free market? Right? And if they can't, your your economy dives.

And where does the money come from the people that the government is saying, well, I'm going to give you this money. Um. So, So that's that's the piece that it's unbelievable that the US for so long and they know what it looks like, right, because we've already played this game around the world. Yeah, it's it's interesting. I'm I'm I'm forty five. So I grew up kind of seeing that Cold War play out. I saw, you know, East West Berlin play out. We've seen obviously South Korea

North Korea play out. Um And so yeah, for me to see people wanting that, I just I can't believe it. I remember people coming in Cuba trying to get to Florida and dying. You know, I'm like shark infested waters. I can't believe it? Um, so can I? Can I jump in there for one second? And this is this is actually, um, this is actually one of those sailing points. If you, you and I grew up in that world. We saw, We saw that. But a lot of people that are wanting you b I didn't. They haven't. They

haven't read history of what it looks like. They haven't said, they haven't studied economics, they don't look you know what free markets look like. And the truth is they don't live in a free market. You have manipulated chrony capitalism that's hurting them, right, and so in an environment where you don't have a free market is a free market for the rich, right, and and and and so it's it's a managed market for where your stimulate government stimula.

A natural cause is for those people to say there has to be a better way. So somebody when somebody waves a magic one and saying hey, I'm going to give I'm going to give you a better way that fits with your knowledge, you'll take it and you believe

it all day long. Like how how many people believe that simple solution, which is not a solution at all when they in chaos is it is staggnerant and and and and I just continue just to say over and over it's just a complete failure of the education system, you know, just a complete filure. You know, when when you're a business owner, business the founder, and etcetera. You

solve problems, right, that's what business owners do. And uh, and what we typically do is we look for examples of what's working and what's not working, and then we do more of what works and less of what doesn't work. And so we'd call that like looking So instead of just looking at a problem and how can we solve the problem? How can we solve the problem, you would look for a bright spot, where is it working somewhere else?

And so when you look and see whatever, I don't know, two thirds of the world lives in extreme poverty, and one or two nations have been able to lift people out of poverty and become inventors and creators. You would just look at that, well, why why did they become in creators? And why are these stuck in third world countries? And you would just look at the systems It just seems so obvious. But again, I guess the education system

just blinds people to that. Yeah, or or or When people can't pay their rent and feed their families, they look for easy narratives. Look look at what happened in the Romer Republic. That was a rise of Hitler. Right, it's it's natural. It's a totally natural phenomenon that people are looking for an answer that fits with their narrative.

And so um again, these these systems are giant systems that have feedback loops and cause unintended consequences, and people aren't driving into the unintended consequences on either side of the aisle. Right, So so so on on in your economy, in a two party system, right, um uh, you have two sides yelling at each other, screaming, and camps developing on both sides of that, both unaware that they're sitting on top of a system that there's nothing they can

do to keep it going. One side says we're going we're going to keep a free market, and it's not a free market, right, And the other side says we're going to give you money, right and not create more and more socialism. So there you have socialism for the rich on one side, socialism for the poor on on the other, and in both unaware that there's been a

structural change to how a on them is need to run. Yeah, and they're preventing that structural change from happening and causing all of the things, all of the divide of society that they don't want. Yeah. And and it really comes down just that education, which is why you write that book The Price of Tomorrow, which I recommend everyone go get.

It's why I do my YouTube videos as well. Um I want to talk about how this plays out then, And as you said, like the great Unwined you know, I was just thinking though before as you were talking. One one way that I look at it and I think people can maybe kind of put this into relation. Is that like a free market, as you kind of said, it's it's not always nice. I could spend a lot of time and effort and money to build a product and take it to the market and the market may

not want it. Yeah, that's not nice, but it is what it is. Um. I look at it like imagine saying that it's that competition, what that entrepreneurs do that kind of yield asymmetric debts. Right if you're that is the core of innovation. Yep, right, it's that risk group turned profile, that having to invent something that really works for other people and and having everything on the line.

That is the core of innovation. Without Without that, innovation stops and it's a matter of only going to the market with what people want, what solves their needs and problems. So people think business owners are greedy. Well, a business owner only succeeds by solving needs and problems of others, not themselves, of others. And if if it's not solving enough needs and problems, it doesn't succeed, I need to

go back. It does exactly. Yeah, but I was just thinking about like nature again, these are natural laws, right, So like in nature, you imagine like an animal, a lion, right if you will, and or whatever whatever kind of animal. And uh, in nature, it's not nice. They may not have food for a few days, they might get eaten, they may not have a but put they're free to

live their life. We could just put that animal in a cage at the zoo, make sure they're safe from from predators, give them one meal a day, and now they're safe and they have a meal, but they live in a cage. That's actually really good. I think that's a really good analogy because when when you when you say free markets or managed economy, that's what you're saying. You live in a cage under somebody else's control, or

you live in a free market. Both sides which one is worse, right, So, so both both sides have have pros and cons and there's just more pros and a free market. Well, the problem is and and uh, you know, most of the world probably wants now to release all the animals and the zoos and whatnot, right, and so I think if you put it in as terms, but the problem is is that, um, you don't want to take a wild animal and put it into a cage, an animal that's been free and then put into a cage.

But you also can't take animals that have been raised in cages and put them back into the wild. So that's where we at because what ends up happening is and that's actually that's why that analogy is probably useful because if if you haven't managed society in a cage, you lose company, you lose competitive edge for you. That's that's where you're taking the money from to put into the managed economy, and there is no competition anymore, so you lose that competitive edge. You don't have to be

a competitive economy. That's what we're Yeah, and they just can they can't go back to the wild again. So so that leads me to the point of the grade and Wind. I know, we've got to wrap this up, so we'll finish on that. But so how do you see this plane out? I mean, technology wins. You said it could be very disruptive. I mean, is there an easy way to transition out of the system that we have into this new system? Or when I wrote the book,

I was hopeful yes. And remember the book came up just before, so it predicts all these events and what happens next, right, Um, But and it came out January and January and then COVID hit and COVID was a great accelerator of the trends I'm talking about, right, So, so in response, what my hope was is that you could have policy discussions that would manage that on wind right in a slow way, and allow that to happen

and save currencies. Since COVID accelerated technology, right, So you know, what's happening online where the rate of growth online and technology, all the technology companies are actually winners in this, all hitting records in this well, there's all this unemployment. Technology is a huge winner of this, so it excels. It's accelerated the trend. Also, because it's accelerated trend, it's accelerated

government's response. So the amount of easing, the amount of debt creation, amount of everything else, essentially making the balloon bigger, is so outrageous today that that the governments, all governments are forced onto this path that's only going to get worse. So they will, so you will see way more stimulus. You'll see you'll see eventually the FED kind of the treasure, you'll bypass the fret FED and you'll get helicopter money.

So you without without that right now, you're going to get more deflation and it's going to accelerate, and that deflation is going to accelerate, and you're gonna have this inequality that's building even faster than it's building today. So at some point you and you can expect rule changes, not just the FED, but globally at all the where there's direct bypasses of the banking institutions where money goes directly to citizens, right, and at that point you can

expect hyper inflation where your where your wheelbarrows fow of money. Now, it might take some time to do that, right because because politicians cannot do it right. But you're on a path to at some point the currencies are going to be totally destroyed and then on the other side of that you're gonna have deflation. Right. So so if you think about where your bets are placed in that it's you.

You have to diversify your portfolio because it's really ugly on this people are going to be completely wiped out. If you have if you have cash and you go to hyper inflation, your cash is worthless. If you if you have um, if you have stocks or or real estate and you go through the deflation and you have loans again against that, you're gonna get wiped out. So so you've gotta be really careful on those sides of

those bets. But probably deflation change a change of FED FED rules and other government to bypass to bypass that creation of inflation because they're forced on that path now inflation leading to hyper inflation, reset of the reset of the game deflation. Yeah, yeah, that makes sense, and I think that it's very logical. I think that kind of see the same way. Uh, And so if I'm paraphrasing, and then basically, um, it continues to get worse and

worse and worse the deflation. The FED continues to do more and more and more, which finally overshoot their goal, which leads to the hyper inflation, which is eventually the Fed. The FED can't create the inflation. They think they can, they can just signal the market. They can't. They can't because the federal requires that they fed money go to

banking institutions, and the banking institutions won't lend. Right, So even though M one, all of you created all this money, it's not actually in velocity M two, people aren't spending it because it's not being lent out to to society. It's going straight into asset price. So asset prices are going up, but it's not creating the inflation. So to create the inflation, there has to be a bypass of that of that instrument to two people who will then

spend it, who then then create a hyper inflation. Yeah, great, well we're going to wrap it up with that, because I know we're out of time, but I appreciate that. UM, for everybody that wants to know more about this, of course, go read the book The Prices tomorrow. I will link to it in the show notes. UM, is there anywhere else they should follow the website or you're on Twitter? I know on Twitter, just at Jeff Booth. Okay, so Jeff Booth. So I'm gonna go ahead and link to

that in the show notes as well. UM, it's an important conversation. I think everybody needs to be more aware of what's going on. Like we've talked about, the lack of education is a big problem. So go educate yourself, get the book, and we'll wrap it up with that. Thanks so much, Jeff, Thanks Markus, Gregg