Ramazan Eles 
Former Goldman Sachs executive Raoul Pal anticipates a significant inflow of liquidity into global markets, which he believes will drive substantial gains in risky assets such as cryptocurrencies.
After his tenure at Goldman Sachs, Pal founded the macroeconomic research firm Global Macro Investor and the financial media company Real Vision. He recently stated that he expects substantial liquidity to enter global markets, leading to sharp rallies.
In a discussion with analyst Julien Bittel on Real Vision’s YouTube channel, Pal elaborated on short-term scenarios. He pointed out the reduction in the U.S. Treasury’s current account balances, the Federal Reserve halting its tightening policy, and the introduction of tax and fiscal spending incentives as key factors contributing to the anticipated liquidity influx:
“Along with these factors, Japan might intervene in its own currency by selling dollars, which would then flow into global markets. Many countries will add liquidity, with China likely leading the way.”
Pal highlighted the Basel IV regulations, new banking rules developed by the Basel Committee on Banking Supervision, which will require banks to hold more liquidity. He explained that these new rules would prompt banks to purchase and hold more bonds, while the weakening real estate sector would also contribute to liquidity:
“Next year, Basel IV will come into effect. The new regulations will lead banks to acquire and retain more bonds. The softening real estate sector will also provide liquidity. There are numerous factors that will bring money into the markets. We haven’t even discussed most of them… As I’ve mentioned before, I believe the banana zone is coming. We will see huge, powerful rallies.”
Pal also expressed his expectation that the cryptocurrency market, currently valued at $2.5 trillion, could soar to $100 trillion within 8-10 years. He urged people to seize this opportunity and not squander it.
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