Former Goldman Sachs director Raoul Pal outlines what he says the two most important graphs are “in all macro”.
The Real Vision Chief Executive and Co-founder tells Are 1.2 million followers on X that forcing aging demographic governments for more money to borrow more money to support the growth of gross domestic product (GDP) and pay interest on the debt.
Pal’s first graph Looks at the American labor force against the reverse graph for the US government debt as a percentage of GDP.
Are second graph Looks at the net liquidity of the US Federal Reserve compared to the normal graph for the US government debt as a percentage of GDP.
Pal says that the graphs emphasize a serious macro -economic challenge and that the end result is currency.
“With more than 100% of GDP in debts, there is not enough economic cash flow to finance debt growth, so it is’ printed ‘through Fed Netto liquidity and also forced through the banks’ balance sheet.
This is the fact that the currency de -bases and lowers the denominator, making scarce assets more valuable.
Crypto (mainly Bitcoin) is the raft of life because it not only compensates for the annual debasement of 8%, but also gets value as a result of adoption effects. “
In the long term, out He believes that artificial intelligence (AI) and robotics will improve the dilemma and play a key role in reducing the pressure of aging demography.
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Generated image: midjourney