Over time, due to aging demographics, governments need to borrow more money to support GDP growth to pay interest on the debt.
At over 100% of GDP in debt there isn't enough economic cash flow to fund the debt growth so it gets "printed" via Fed Net Liquidity and also forced, via regulation, onto the balance sheet of the banks.
That debases the currency and lowers the denominator, optically making scarce assets more valuable.
Crypto (Mainly Bitcoin) is the life raft as it not only offsets the annual 8% debasement but also gains value due to adoption effects.
These two charts remain the most important chart in all macro and the ones the least people understand.
It's all demographics. It always has been
Mentioned on : 06/04/2025
The next five years will reshape the entire economy!
Here's an exclusive look at what my friend @DMattin and I discuss on The Exponentialist...
It was also great to have our members on Zoom interacting with us, along with a few sharp kids asking us some v smart questions!
As ever, I hope you find it useful— If you like what you see, join us here as we dissect the Economic Singularity together:
0:00 Macro-Crypto Nexus
5:00 5-Year Singularity Clock
10:00 Gulf AI & Blockchain Blitz
15:00 Sovereign Nvidia Supercomputers
20:00 Kardashev 2.0: Energy→Intel
25:00 Space Compute & Solar Boom
30:00 Token-Economy Future
35:00 Musk’s Mars Infrastructure
40:00 Quantum Path to ASI
45:00 Alpha Evolve: AI Self-Improve
50:00 Companion AIs for All
55:00 Mid-Curve Corp Shake-Up
1:00:00 1-Person, 1M-Agent Firms
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