The flexible monetary policy of the US Federal Reserve System (Fed) has led to the emergence of “tumors” like bitcoin. This was stated by the philosopher and author of the cult work “The Black Swan” Nassim Taleb.
“I think that we’ve had 15 years of Disneyland that basically has destroyed the economic structure,” says @nntaleb. “You are hurting the economy.. creating tumors like #bitcoin. There was at some point such a thing as a discount rate. All these notions escape the new generation.” pic.twitter.com/gebbrcws7I
— Squawk Box (@SquawkCNBC) September 15, 2022
“I believe we’ve had 15 years […] Disneyland, which actually destroyed the economic structure. The Fed missed the mark by cutting interest rates too much,” Taleb said.
In his opinion, because of this approach, people under 40 do not understand how the economy works. Society will have to face the consequences, the philosopher warned:
“Zero interest rate for a long period of time hurts the economy, you create bubbles, you create tumors like bitcoin.”
Taleb called for a return to “normal economic life.” He noted that the price of the first cryptocurrency at $20,000 means there are “some things that need to be fixed.”
Recall that in February, Taleb said that bitcoin will not save investors from inflation and falling markets.
In June, the philosopher called the first cryptocurrency a “gold mine” for lawyers due to regulatory uncertainty in the market.
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