Palihapitiya identifies $45,000 to $63,000 income range as stagnation zone where benefits create poverty trap.
“There is a very specific part of, though, what he said, which I think we should focus on, which is there is an area between $45,000 a year and $63,000 a year, which actually looks like a bit of a stagnation zone.”
Palihapitiya claims California's proposed billionaire tax has changed the state's economic trajectory by $100-200 billion over five to ten years.
“That one bill, this proposed billionaire tax, has single handedly changed the trajectory of the California economy by a 100 to $200,000,000,000 over the next five to ten years.”
Palihapitiya argues debt-to-GDP ratios don't matter if all major economies rise together since 1700 to potentially 300 percent.
“So if the entire world moves in unison like this, there is an argument to be made, which is that you could end up at 300, two fifty, 200% of debt to GDP.”
Palihapitiya predicts debt-to-GDP will reach 200 to 600 percent globally because governments are addicted to spending.
“But I think debt to GDP, quite honestly, if I had to be a betting man, will trend into the $2.03, $4.05, 600 on a relative basis for all countries because I just think the governments of these countries are addicted to spending, and there is no reason to stop, safe of some other planetary species invading planet Earth.”
Palihapitiya says his costs are increasing three times every three months while revenues are not.
“But the problem is that my costs are going up three x every three months. My revenues are not. Token use is very addicting.”
Palihapitiya states half of large US companies cannot deliver returns exceeding the 8-11% cost of capital.
“What that means is that is the actual cost that you would borrow money at effectively. The problem is that half of large US companies now cannot deliver returns that exceed that.”
Palihapitiya says if Druckenmiller isn't embarrassed to be AI meat proxy, neither should you be
“If Stan Druckenmiller isn’t embarrassed to be a meat proxy, you shouldn’t be either. It’s like after matches was invented, still celebrating the arduous time to rub two sticks together. Dumb. https://t.co/UB319Irqcd”
Palihapitiya argues greatest AI margins will eventually flow to those closest to end users
“We know from the desktop and Internet eras that the economics started similarly and then flipped - the greatest margins were ultimately from those closest to the end user. The question is not if this will happen again in AI but when. https://t.co/O8wFcJ6Dj1”
Palihapitiya argues greatest AI margins will eventually flow to those closest to end users
“We know from the desktop and Internet eras that the economics started similarly and then flipped - the greatest margins were ultimately from those closest to the end user. The question is not if this will happen again in AI but when. https://t.co/O8wFcJ6Dj1”