The Everything Code TL;DR.
The labor force participation rate isn’t going to rise anytime soon – it’s set to keep declining over time. This is a structural problem…
We’ve got aging demographics, falling birth rates, and now the rise of automation.
Humans are already being replaced by AI and robots at a staggering pace, and that shift is only just beginning. This is deflationary.
It also reinforces the need for ongoing stimulus to keep the system afloat.
Fewer workers. More tech. Same debts…
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
PayPal's PYUSD stablecoin recently surpassed a $1 billion market cap!
It has increased by 271% since its launch on Solana, with Solana PYUSD accounting for 88% of that growth.
Why did PayPal choose to build on Solana and what’s driving PYUSD adoption? 🧵