The macro strategy says that Bitcoin is a “raft of life” as the US debt rises by 100 % of GDP
Raul Pal, a veteran macro strategy expert, issued a blatant warning about the future of the Fiat currency, indicating that the burden of American debt, agricultural aging, and central banking interventions put the way to capture the long -term currency and the Bitcoin (BTC) as the final hedge.
Pal, founder of Global Macro Investor and Real Vision, participated in two major planners for the macroeconomic economy, which is believed to be largely overlooked. “These plans are everything,” is it I mentionedOn the pretext that the population composition, not fiscal policy, is the real driver of sovereign debt.
The first plan compares the rate of US workforce sharing with US government debts as a percentage of GDP (inverted). Since 2002, the participation has decreased steadily during the rise of debt, a sharp -ranging trend after the 2008 financial crisis and again in 2020.
“The demographic composition is the main driver of debt,” Pal stressed, noting that the elderly workforce means fewer contributors to economic production and more dependence on government spending.
The debts of the US government and net liquidity
The second chart shows the narrow relationship between the debts of the US government and the pure liquidity of the Federal Reserve.
According to Pal, once the debt exceeds 100 % of GDP, organic economic growth is no longer sufficient for interest services. The gap is then covered with cash printing “transporting the currency and lowering the place”, with its words.
On this background, Bitcoin appears as a basic origin capable of absorbing the effect. Pal said: “Crypto (mainly Bitcoin) is the flood of life because it not only displays the Debasement by 8 % annual but also earns the value due to the effects of adoption.”
Its conclusion is unambiguous: While traditional investors may focus on short -term policy movements or modified courses, the biggest story lies in the population and debt composition. “Everything is the population composition. It was always.”
Distinctive image via Shutterstcok
