Raoul Pal Bitcoin - Prepare Yourself! This will get WORSE....

Raoul Pal Bitcoin - Prepare Yourself! This will get WORSE....

In this video, Raoul Pal gives one of the best explanations I have heard about why the upcoming market crash will be one of the largest we have ever seen. He also speaks on how to be a disciplined, successful investor, and why inflation combined with debasement of the currency is eroding everyones wealth.

Is Bitcoin the only answer?

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In this video, Raoul Pal explains why people get poorer despite a rise in wages in the developed world. He also sheds light on the debasement of currencies. Finally, he suggests Bitcoin as one of the viable means through which people can protect and enrich themselves. Here are some of the key points:

Presently, 76 million Americans are in the labor force. Meanwhile, the law of supply and demand says if the number of people in the labor force increases, the price of labor won't go up. Hence, labor has been stagnant.

The young generation is now buying cars, houses, and several assets, thereby causing prices to rise and leading to inflation. Meanwhile, wages are not increasing but prices of goods are rising.

In 1996, China entered the WTO agreement, which put everyone in a level-playing field. So, competition in the labor market is now stiff, courtesy of computers, technology, software, Artificial Intelligence, the Indians, the Chinese, and baby boomers.

People are getting poorer because prices of fixed assets, such as housing and vehicles are rising. Investing in properties is a future release of capital. But buying vehicles and borrowing money later to pay for the shortfall will contribute to an individual's debt profile.

In 2008 when prices of fixed assets were rising, policymakers introduced quantitative easing, which was buying bonds and printing money, and they denied that it was inflationary.

Unlike what many people think, the volume and participation in equity markets have been going down for the entire decade. The value of money is going down because money has been debased and we are making more of it.

The old-age relationship between gold and equities has always been in a range. Neither gold nor real estate is overvalued because we are not seeing any record volumes, and the reason is that policymakers have lowered the value of the denominator.

Central banks have been expanding their balance sheets by about 15% every year, so we are getting poorer by 15% every year, and this is mere populism. And wages are not going to close the gap.