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Raoul Pal Sees Two Major Sources of Liquidity Demand

The current environment is different because governments need to finance their debt while companies are spending heavily on AI infrastructure. He described this as two major funding requirements happening at the same time: government borrowing and the AI capital spending cycle.

“So my guess is it continues,” Pal said. “I do think ahead of us is the increase in liquidity. That has to come to fund this debt.”

Pal also pointed to changes in Treasury financing and the increasing use of short-term debt as part of the broader funding environment. For crypto, his argument is that continued…