Former Goldman Sachs executive and current CEO & Co-Founder of The Global Macro Investor & Real Vision Group, Raoul Pal in a recent interview highlighted his "everything code" theory and other challenges and opportunities faced by global economies.
What Happened: In his appearance on “Market Disruptors,” Pal noted that since 2008, major economies have synchronized their debt refinancing cycles, creating a predictable 4-year pattern aligned with the U.S. presidential cycle and Bitcoin halving cycle.
This synchronization stems from central banks’ efforts to prevent systemic collapse by continually debasing currencies and refinancing debt. Pal estimates global currency debasement at about 8% annually, which he frames as "paying an 8% put option fee on the entire system not breaking."
Within this framework, Pal sees Bitcoin BTC/USD as the standout asset. While the S&P 500 barely keeps pace with debasement at 12% annual returns, Bitcoin has averaged 150% yearly gains since 2011. "Once you see it like that…it makes it easy which is just own the one asset that outperforms," Pal stated.
Why It Matters: Raoul Pal believes there are about six years before Artificial Intelligence (AI) and robotics fundamentally reshape the economy in ways that cannot be comprehended. His advice is to "make as much money as possible" before that paradigm shift.
Pal dismisses predictions of an imminent market crash, arguing central banks can’t allow it due to systemic risks. Instead, he foresees continued currency debasement driving asset inflation, with transformative technologies like AI, robotics and blockchain creating a "renaissance" of innovation and productivity gains.
"This is going to be a renaissance,” Pal declared. “We’re going to change what humans do for their existence."
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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