Macroeconomics expert and CEO of Real Vision Raul Pal makes predictions about massive wealth destruction, which he says could lead to sweeping changes in the financial landscape.
Ami says his 962,500 Twitter followers said the current economic downturn is likely to slow the economy down to pre-pandemic levels.
The former CEO of Goldman Sachs said the baby boomer generation, which owns the most wealth in the United States, has limited ability to weather a possible recession.
For baby boomers, the options are:
Destroy the cost of pensions, or annuities eroded by inflation, or quantitative easing (QE) ad infinitum.
This results in more debt for those with lower pensions or savings to compensate… leading to the need to reduce debt through quantitative easing…
And it worries anyone who is younger getting poorer in terms of asset purchases (assets just depreciate in the future).
Pal says that such an economic environment could force the younger generation to invest their wealth in the cryptocurrency and tech markets, which he says are the only asset classes capable of keeping pace with the currency’s fall.
This means that the youth must either leave completely or take more risk as crypto and technology are the only assets that have outperformed the downturn but are riskier and more volatile.
Ultimately, he believes 20 years of negative interest rates are on the table as they give way to falling debt and rising asset prices.
Last month, a macro expert said that while there could still be pain, he believes the bitcoin and crypto markets are in the realm of long-term opportunity.
“But how can something go wrong? Absolutely. But for my investment scheme, we are in buying territory… almost two standard deviations. [logarithmic] regression channel.
source: Raul Pal / Twitter
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