“Death of the American Dream” Can be Solved by Crypto, Explains Raoul Pal

Key Takeaways

• Ex Goldman Sachs executive says crypto is the only way out of the “Death of the American Dream”.
• For Pal, real estate investments and dividend stocks are “suboptimal” investment options.
• He suggests investors put money into crypto and tech sectors.

Former Head of European Hedge Fund Sales – Equities and equity derivatives at Goldman Sachs and co-founder of Real Vision, Raoul Pal, posted a thread of tweets titled “Postcards from the Death of the American Dream” regarding the current state of wages in the US.

A key remark made by Pal within his thread says: “The only way out is to own the assets that rise in exactly this situation – crypto and technology.”

The Death of the American Dream

Pal’s argument revolves around wages in the US and how they haven’t increased since 1965. 

Moreover, Pal argues that equities increased by 2.5% year-on-year leading to the loss of purchasing power by US workers by over 80%.

The reason behind Pal’s red flag is the fact that younger generations are struggling to save up enough money to secure their lives in later years.

To support his argument, Pal cites a statistic that points out how one out of five Americans believes that they will never be financially able to retire.

Grim Predictions

Pal’s thread goes on to foreshadow what he believes will be the outcome of the 2024 presidential elections. 

Based on his earlier statement regarding unchanging wages and increasing cost of living, Pal points out the need Americans have developed to take on debts to finance their lives.

For that very reason, Pal believes that “2024 is a year where the Fed will print more money and the government will hand out more stimulus to bribe the voters, which leads to yet more printing down the line and the people will get poorer and poorer and poorer and despair will keep rising and rising and rising”

Crypto & Tech: The Only Way Out

Wrapping up his thread, Pal says : “I know I go on and on (and on) about this but the only way out is to own the assets that rise in exactly this situation – crypto and technology. Everything else is a wealth trap. It will make you FEEL more in control and more able to deal with what is happening.”

This further emphasizes the point made by Larry Fink, BlackRock CEO, who said: “Crypto is digitizing gold, instead of investing in gold as a hedge against inflation, a hedge against the onerous problems of any country, or the devaluation of your currency, whatever country you’re in.”

Pal ended his thread by saying “Even if you can only afford a very small amount of these assets, it will make a difference. I see no other way. Choose wisely.”