If money is created faster than tangible resources, those resources become more scarce because there is more money trying to buy them. That’s my interpretation.

Yes. Jeff's economics and even just economic theory in general can be conceptual and tough to understand.

As I understand it... the fiat money system prints a bunch of money for cheap and gets it into public circulation via debt to public banks and consumers (mortgages, etc). In the short term it might stimulate growth - but - and this is a crucial point, the growth is fake/artificial. And it leads to inflation. Which causes prices to climb and some deflation to occur.

When...

Prices actually should naturally be falling to marginal costs of production but aren't in a natural way either due to this artificial debt creation or/and governmental control (taxes, laws, tariffs etc).

In a Bitcoin system... and ESPECIALLY with AI and Robotics... costs should fall very quickly to marginal costs (tech gets better and cheaper very fast see: moores law, kurzweil). And so with these falling costs business entrepreneurs will have to adapt and innovate new, better products to be able to generate revenue.

And, on top of this... with Bitcoin always becoming more scarce/valuable... people will be inclined to hold it tightly and make thoughtful decisions to how they buy - prices will need to fall to entice purchasing.

It's a total flip of the system now.

It's not perfect and I'm not sure what Jeff would say are the past indicators it would play out this way. But this is my cursory understanding of the large picture.

This could be a total rewriting of our economic system.