The Fed’s Dilemma: Deflationary Cliff Or Debt Spiral | James Lavish

On The Margin

In this episode, James and Felix discuss the latest Federal Reserve interest rate decision, the impact of quantitative easing & tightening, and the consequences of trillion-dollar annual deficits. We also delve into the repo market, why the Fed is disconnected from inflation, the role of hard assets like Bitcoin and gold, and much more. Enjoy!

—

Follow James Lavish: https://x.com/jameslavish

Follow Felix: https://x.com/fejau_inc

Follow On The Margin: https://twitter.com/OnTheMarginPod

Follow Blockworks: https://twitter.com/Blockworks_

On The Margin Newsletter: https://blockworks.co/newsletter/onthemargin

—

Polkadot is the foundation for an open and resilient web. Governed by its users, Polkadot empowers the largest DAO of 1.3M DOT holders to shape the network’s future. Home to 500+ apps and chains backed by $6B in shared security, Polkadot is revolutionizing DeFi, GameFi, AI, RWAs, and more. With upgrades like Async Backing, Agile Coretime, Elastic Scaling, and JAM on the horizon, now’s the time to join.

Start your journey today at polkadot.com/get-started

MANTRA is a purpose-built RWA Layer 1 blockchain capable of adherence and enforcement of real world regulatory requirements. As a permissionless chain, MANTRA empowers developers and institutions to seamlessly participate in the evolving RWA tokenization space by offering advanced tech modules, compliance mechanisms, and cross-chain interoperability.

Learn more: https://www.mantrachain.io/

—

Join us at Permissionless III Oct 9-11. Use code: MARGIN10 for a 10% discount: https://blockworks.co/event/permissionless-iii

—

Timestamps:

(00:00) Introduction

(02:11) Unpacking The Fed Decision & Dual Mandate

(12:53) Quantitative Easing & Tightening

(18:24) 2019 Repo Spike & Dollar Shortage

(24:39) Trillion-Dollar Annual Deficits

(36:22) Advertisements

(37:36) Why The Fed is Disconnected from Inflation

(44:47) Is Bitcoin the Solution?

(48:46) Gold & Bitcoin As Stores of Value

(53:13) Permissionless Ad

(53:54) Bitcoin Use Case For Global Sovereigns

(58:58) Where to Follow James' Work

—

Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.