Raoul Pal: “No More Waiting! This Is the Beginning of the Banana Zone…” #Finance

that 2008 I think was the great reset the one that people keep expecting happened well most people tend to ER towards the well it’s all going to blow up I’m like show me how if you can debase a currency a global Reserve currency how’s the asset’s going to collapse

you can’t it’s like the Venezuelan Stock Market goes a lot in bolevard terms in dollar terms it goes down that’s debasement so I’m like I don’t think that is the outcome what I actually think of the outcome is remember that formula GDP growth plus

productivity growth plus Debt growth right Debt growth is stopped it’s just servicing of old Debts population growth we know is negative out for 30 years and what is the answer Ai and robots they’re infinite humans after several months

of stubbornly maintaining a hawkish stance despite indications that the economy was cooling too fast Fed chair Jerome Powell has finally provided the strongest dovish signal since the US Federal Reserve started hiking rates in 2022 while speaking at the fed’s annual Jackson Hall Symposium in

Wyoming on Friday Powell signaled that the Central Bank plans to begin cutting the historically High Interest Rates in September the time has come for policy to adjust Powell said on Friday the direction of travel is clear and the timing and pace of rate Cuts will depend on

incoming data the evolving Outlook and the balance of risks though Powell did not indicate how much the FED would lower its key rate next month a majority of forecasters are are expecting a quartero reduction in September with at least one more before the year ends during his speech Powell noted

that the fed’s task of lowering Inflation is not complete but it has made a good deal of progress the Fed chair is confident that Inflation is now on a sustainable path back to the fed’s 2% Target he also acknowledged the state of the labor market as an

incentive for September’s rate Cuts he said the upside risks to Inflation have diminished and the downside risks to employment have increased it seems unlikely that the labor market will be a source of elevated Inflation pressures anytime soon we do not seek

or welcome further Cooling in labor market conditions this is a moment several analysts and prominent investors have consistently predicted over the past few months despite the fed’s insistence that it would hold rates higher for longer until it achieves its 2% Inflation

Target perhaps no one has been as consistent and accurate at predicting this moment as real Vision founder and CEO Raul pal who has spent a large part of the Year educating investors about the everything code and why the fed and other central banks are 100% certain to resume rate cuts and

quantitative easing the rate Cuts QE more cowbell and the impact on asset prices especially Cryptocurrencies make up rul Pal’s everything code thesis which he discusses in a recent

discussion with Mark Moss as we bring you clips from the interview please take take a little time to like this CashNews.co subscribe to the channel and turn on post notifications for more CashNews.cos like this everything you do helps with the YouTube algorithm and immensely contributes to the

Channel’s growth thanks and enjoy the CashNews.co what’s weird about the everything code and I’ll explain what it is what’s weird is it makes everything so simple too simple that most people think well this can’t be possible yeah we kind of knew it in Bitcoin world

because we could see a cycle forming and we’ve been following this cycle kind of dumbly like well it’s kind of maybe just the harving cycle we don’t really know and then I started digging in and realized that the business cycle was perfect the business cycle I used the ism survey

and it was a perfect cycle I’m like that’s weird because if you remember go back prior to 2008 we’d have these long periods of no recession short periods and it was not it was variable but suddenly it’s like a metronome as you say I’m like huh what’s that all

about and eventually it led me to realize that 2008 I think was the great reset the one that people keep expecting happened what they did is they basically for they they told everybody they could forego paying interest on all their Debts which was Zero Interest

Rates and then they tried the new trick of printing money via quantitative easing now what that did is allow every single major government in the world to reFinance

all of their Debts on this 3 to 5e sector and so they all did it and what it did was forc the business cycle into this 4-year cycle and then all the asset prices are all correlated whether it’s Tech whether it’s Bitcoin whether it’s the economy itself it’s

all driven by the same cycle which happens to be the presidential election cycle which happens to be the Bitcoin Haring cycle it’s all the same thing and so when you understand that it makes the game a lot easier now this is not going to last forever but for the period of time that

we’ve got it seems to be playing out perfectly and you can break these Cycles down to four phases which I call the seasons so we have call it Crypto or macro winter well that was 2022

that was 2018 that was uh 2014 that is four years the next part of that is spring when nobody quite believes that something is changing but prices start moving higher you know Bitcoin had a great year in in 2023 against most people’s expectations because spring is the time the shoots come up

then you start transitioning to Summer which is this year which happens to be the election year which is when really the Debt starts getting reFinanced and

they have to start using Liquidity to Finance it because there’s not enough GDP growth to pay for the interest on the Debts and so

they keep rolling forwards these Debts and they keep monetizing the interest payments which is this debasement of currency that happens at about on a globalized level 8% a year they’re debasing currency and so and then next year will be um macro full and then eventually the

cycle tops out and we repeat it again because it’s based on the Debt refi cycle right that this debasement of currency of 8% there’s two ways of looking at it you can say rightly so we’re being robbed of our future wealth because your future self is getting poorer

because you can afford less Assets with your Income because Income doesn’t go up the Assets do because of the debasement or the other way is you can say I’m paying an 8% put option fee on the entire system not breaking

because that’s also what they’re doing because they need to reFinance the Debt they need to not let asset prices go too far down so we can talk

about that bit it’s another way of looking at it and you’re like would you pay 8% a year to have the entire system not break maybe according to Pal central banks have found the magic formula to keep the global economy from the inevitable collapse many have been predicting for years

though this comes at a cost for all the debasement of Fiat currencies pal believes it’s a small price to pay to prevent the collapse of the global economy according to the renowned macro analyst the only way out is to invest in Assets that are sure to outperform this periodic

debasement of the denominator in in this regard nothing comes close to Cryptocurrencies especially top text-decoration: none;">Cryptocurrencies like Bitcoin ethereum and salana this is why pal is predicting at least a 400% increase in the overall Cryptocurrency market cap by 2025 from just

above $2 trillion today to 10 to 15 trillion at the peak of the bull market next year for the rest of the global economy pal says central banks will be able to continue to coast along by printing periodically until a more permanent solution surfaces here are more clips from his discussion with moss

if you think about an aging population if you think about your parents the older they get the less they spend so aging populations tend to have lower Trend rates of GDP they all do it’s happened observable everywhere cuz old populations spend less they also tend to not know how long

they’re going to live for after they retire so when my dad retired his spending must have fallen 60 or 70% because he’s like well I’ve got this much money I don’t know how I’m going to live for is my wife going to be taken care of and so they change their habits and so

that drags down GDP growth as does Debt and so it keeps compounding this whole thing is right now for example Interest Rates are at 5 a half% but Trend rate of GDP over the last five six years is about 1.75% so you’ve got this big gap and you need to get

interest rate down so you can refy them but all the time GDP keeps falling over time and you can forecast into the future it’s just the birth deaths and it gives you 30 years of understanding and it’s just telling us unless something dramatic changes which is technology we’re just

going to keep dragging down GDP forever and we’re seeing it worse older populations Japan China most of Europe they’re older than the us because they had less immigration what you find is their GDP keeps shrinking Australia on the other hand has a high immigration rate as has Canada and

they tended to do better because of the immigration rate because really GDP growth is driven by population growth productivity growth and Debt growth well most people tend to ER towards the well it’s all going to blow up I’m like show me how if you can debase a currency

a global Reserve currency how’s the Assets going to collapse you can’t it’s like the Venezuelan Stock Market goes a lot in bolivard terms in dollar terms it goes down that’s debasement so I’m like I don’t think that is the

outcome what I actually think of the outcome is remember that magic formula GDP growth plus productivity growth plus Debt growth right Debt growth is stopped it’s just servicing of old Debts population growth we know is negative out for 30

years and what is the answer Ai and robots they’re infinite humans and productivity what is productivity productivity really is how much output per kogle of energy now think of that as electricity costs if you then think about and a lot of people like the Europeans they’re nuts look

what they’re doing with this green energy they’re wasting money they’re not their entire job is to lower the cost of electricity because that is the only way they can pick up GDP because it creates the multiplier to productivity they don’t have the tech industry in the same

way but they have them and China are the big pushes of Renewables so the cost of Renewables has been collapsing over time it’s down 99% over the last 15 years so as it’s getting cheaper and cheaper eventually you can scale it enough that you will change productivity on the other hand

you’ve got Japan China the US using Ai and Robotics which creates infinite people now if you’ve got infinite people you kind of break GDP I call it the economic Singularity you get to some point where GDP doesn’t mean anything anymore what does any of this mean so if you’ve

got productivity going up because of energy costs and you’ve got infinite humans or what you know humans in inverted commas then that changes everything according to Pal there’s still a good chance that we can avoid serious economic repercussions especially in countries with strong

currencies like the US however investing remains crucial for anyone who wants to preserve and grow grow their wealth over time traditional asset classes like Bonds may not keep Pace with Inflation and while popular stock indexes like the S and p500 might help

maintain wealth they won’t necessarily increase it pal suggests that Cryptocurrencies and technology stocks are the best options as they are likely to continue outpacing currency

debasement what are your thoughts on the CashNews.co do you agree that Ai and other rapidly advancing Technologies could be the key to solving the world’s massive Debt issues we’d love to hear your opinions in the comments section below don’t forget to like this

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