The flexible monetary policy of the U.S. Federal Reserve has given rise to “tumors” like Bitcoin, according to 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 think we’ve had 15 years of Disneyland that basically destroyed the economic structure. The Fed over-shot, cutting rates too aggressively,” Taleb said.
In his view, because of this approach people under 40 do not understand how the economy works. Society will have to face the consequences, the philosopher warned:
“A prolonged period of near-zero interest rates harms the economy; you create bubbles, you create tumors like Bitcoin.”
Taleb urged a return to “normal economic life.” He noted that the price of the first cryptocurrency at around $20,000 indicates that there are “some things that need to be fixed”.
In February, Taleb stated that Bitcoin will not save investors from inflation and market declines.
In June, the philosopher called the first cryptocurrency “golden vein” for lawyers due to regulatory uncertainty in the market.
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