Raoul Pal’s Recent Explanation of How Money Works Is the Most Important in History
The recession that never was
Raoul Pal, the CEO and founder of Real Vision Group, is a cryptocurrency and tech maximalist who has gained fame for his knack for simplifying complex ideas for any audience.
Raoul has been on fire lately, releasing a series of captivating videos delving into the current state of cryptocurrency and the economy as a whole.
Here are his most shocking observations:
The Recession That Never Was
Recession is a goner.
Pack up. It's done.
Here's why it looks that way:
Reason 1: Savings accumulated during the pandemic saved our sorry asses from the economic wrecking ball of inflation. But guess what? Our cushion of savings is about to run dry. Brace yourselves, folks.
Reason 2: Prices skyrocketed from inflation, but that didn't stop people from splurging on lavish vacations and piling on debt. Can you really blame them? After enduring a grueling 3-year pandemic, we deserved a damn break.
U.S. Dollar is in Freefall
The US dollar index is tanking because the US economy and stock market are thriving. A global panic caused last year's spike in the USD index; investors thought a recession was coming and ran to the USD for safety.
But now that things are looking up, investors are pouring into equities and other risky assets, so the USD index is tumbling.
AI is ‘the biggest bubble of all time’
Microsoft and Google (plus maybe Nvidia) are being showered with $$$ as everyone jumps on the AI bandwagon.
Investors are so caught up in the hype that they're willing to throw money at any AI-related stock, even if the company is severely overbought.
“This is what happens when you get such a breakthrough in technology that everyone has to use it — it will probably lead to a huge bubble,”
—Raoul Pal
Raoul believes in AI. He thinks it might even be bigger by orders of magnitude than China joining the World Trade Organization. But bubble-like valuations? To him, it’s going to happen.
I mean, shit. Everyone’s already abandoned AI to jump on the Threads hype train. Soon enough it’ll be something else.
Ethereum Adoption is Faster Than the Internet
The London Hard Fork update in 2021 burns ETH after every transaction.
London Hard Fork = Deflationary ethereum.
It’s working too well, according to Raoul.
The more activity there is on Ethereum the more deflationary the network becomes, creating a dislocating market toward the upside.
A good problem … for now.
But in the future, it could make Ethereum unstable, especially since Ethereum is growing at twice the rate of the internet in the early days.
Eth as a Security
Big news. In a long-awaited ruling, a federal judge declared that the XRP token, developed by Ripple Labs, is not a security. However, this victory is not as clear-cut as it seems.
US District Judge Analisa Torres justified her decision by suggesting that institutional investors were more informed about XRP's securities-like qualities during its initial funding, while current traders may not be as knowledgeable.
A win is a win but it’s no slam dunk.
Plus the Ripple case is far from over and still awaits its trial date.
The Current Financial System
The current financial system will keep itself going until it can’t.
This is what humans do… even if the system is broken, corrupt, driven by cupidity, stupidity, autocracy, and demons talked about in Revelations. It will keep going until it can’t. Until a giant event happens.
I’m a revolutionary at heart, and so is Raoul.
But as Tupac Shakur sardonically said, “Some things will never change.”
Takeaways
Here are the takeaways:
We may skirt a recession due to ancillary factors caused by the pandemic
The almighty dollar is going down the drain as investors play with riskier assets… it could bring them fortune or blow them up if the economy goes
AI is a massive hype bubble that isn’t ready to change the world yet
Be aware of the regulatory risks for Ethereum and other cryptocurrencies
The current financial system is a Ponzi scheme… but that won’t change
Live an adventurous life. Money isn’t the end-all-be-all. Good luck out there!
Ever since I was a child it was my dream to become a financial advisor. Unfortunately, it never came true. Therefore, I am not a financial advisor; you should do your own research and not just listen to random people on the internet. Nothing contained in this publication should be construed as investment advice.