1/ Summarizing the interview with @JeffBooth on @realvision: The central bank's losing battle with deflation.

- Technology is a deflationary force
- Higher abundance at lower cost over time
- This accelerates exponentially
- Monetary stimulus fights this https://www.realvision.com/shows/the-interview/videos/the-central-banks-losing-battle-with-deflation

2/ Technological efficiency doubles every few years. People underestimate what exponential growth means because we extrapolate the past. This efficiency comes at the cost of jobs, because the majority of jobs are a function of our intelligence and AI will make those unnecessary.

3/ Tech companies bring deflation to your life by cutting costs - a lot of what we use is free. This accelerates over time.

A deflationary current makes debt harder to pay back, because when things become cheaper people earn less.

4/ To avoid this negative spiral, central banks drive inflation through monetary stimulus. The debasement of currency causes assets, real estate & stocks to rise. People that own assets are the only winners out of this. It continues to divide society by accelerating inequality.

5/ The problem: because of the exponential force behind technological growth, exponentially more stimulus will be needed to fight it. This translates into hyperinflation.

If we continue this way,the ponzi scheme of debt creation at some point will break & cause currency to fail.

6/ Governments are trying to answer the wrong question: How do we protect high paying jobs?

In a deflationary world we need to print money in order to do that, which further accelerates the inequality.

7/ The right question: How do we build a society where we don't need high paying jobs? What if we let deflation happen and allow prices to go lower and lower?

Inflation does not help the poor because they have no assets to begin with. Our current path can not work.

8/ To avoid revolutions between the poor and the rich, we need to figure out the debt situation & think about how we will transition into a new society. Because the debt restructure will happen eventually whether we want it to or not - with our monetary system at stake.

9/9 Bitcoin is a potential hedge against this and may be a part of the more sustainable future, as its network effect grows as more and more users become part of it, generating worldwide trust. Trust that prevents all this from ever happening again.

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