According to insights shared by Raoul Pal, former Goldman Sachs executive and founder of Real Vision, demographic shifts are accelerating economic strain and could drive significant currency devaluation.
Speaking in a recent macroeconomic analysis cited by Foresight News, Pal explained that aging populations are placing increasing pressure on government balance sheets. As the population ages, governments must borrow more to maintain GDP growth and manage interest payments on national debt.
“When debt exceeds 100% of GDP, internal cash flows are no longer sufficient to fund debt expansion,” Pal said. In such cases, further debt growth must be supported by the Federal Reserve’s net liquidity injections—effectively, monetary expansion or ‘money printing’. Regulatory policies, in turn, force banks to integrate this liquidity into their balance sheets, amplifying the cycle.
Pal noted that this process systematically reduces the purchasing power of fiat currencies, leading to a devaluation of the currency ‘denominator’. As a result, scarce assets—such as Bitcoin and other cryptocurrencies—gain in apparent value.
“Crypto acts as a lifeboat,” Pal stated. “It not only offsets the average 8% annual currency devaluation but also appreciates due to rising adoption and network effects.”
He emphasized that while these macroeconomic patterns are rooted in demographic trends, they are widely misunderstood in mainstream economic discourse. “This has always been the fundamental driver,” he concluded.
Pal’s comments align with a growing view among institutional investors that digital assets offer protection against inflationary and fiscal risks in an increasingly debt-driven global economy.
