Former Goldman Sachs director Raoul Pal outlines what he believes are the three most important charts for crypto and macro at the moment.
The first card Pal shares with its 1 million followers on the social media platform,
The CEO of Real Vision explains:
“These are the three most important charts in Global Macro, along with crypto…
Demography is destiny. GDP (gross domestic product) slows over time as the size of the labor force shrinks.”
Friend second graph plots US labor force participation against US national debt as a percentage of GDP.
“The ratio of public debt to GDP is only a function of the labor force. It compensates for weak growth and pays the interest on the debt. This is THE most important chart in macro.”
Are third graph plots federal net liquidity against U.S. national debt as a percentage of GDP.
“Those debts are repaid through reduction, as liquidity increases over time.
So to summarize The Everything Code:
– Older population = lower trend GDP growth
– Lower GDP growth requires increasing debt to maintain growth and serve the old population.
– Governments/central banks print money to pay off debts.
– It’s a four-year cycle
= Number goes up.”
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us further X, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney
Credit : dailyhodl.com
