Lyn Alden: US Treasury To Trigger A Liquidity Crunch Once Debt Ceiling Is Raised

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Investors hoping for a kinder year after 2022's bruisings have been disappointed so far with 2023.
If anything, things are even more unstable so far this year.
Are things likely to equilibrate and give the bulls room to run?
Or will the challenges of stubborn inflation, high interest rates, accelerating debt, slowing economic growth & continued geopolitical stresses demand a reckoning.
To discuss, we're fortunate to be joined to day by respected macro & market analyst Lyn Alden
She warns that, once the debt ceiling is lifted, Janet Yellen will need to re-fill the Treasury General Account, creating a liquidity crunch that will hasten a recession and brings stocks lower.
Follow Lyn at her website: www.lynalden.com/
Or on Twitter at @lynaldencontact
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At Wealthion, we show you how to protect and build your wealth by learning from the world’s top experts on finance and money. Each week we add new videos that provide you with access to the foremost specialists in investing, economics, the stock market, real estate and personal finance.
We offer exceptional interviews and explainer videos that dive deep into the trends driving today's markets, the economy, and your own net worth. We give you strategies for financial security, practical answers to questions like “how to grow my investments?”, and effective solutions for wealth building tailored to 'regular' investors just like you.
There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?
Let us help you prepare your portfolio just in case the future brings one or more of the following: inflation, deflation, a bull market, a bear market, a market correction, a stock market crash, a real estate bubble, a real estate crash, an economic boom, a recession, a depression, or another global financial crisis.
Put the wisdom from the money & markets experts we feature on Wealthion into action by scheduling a free consultation with Wealthion’s endorsed financial advisors, who will work with you to determine the right next steps for you to take in building your wealth.
SCHEDULE YOUR FREE WEALTH CONSULTATION with Wealthion's endorsed financial advisors here: www.wealthion.com/
Subscribe to our KZbin channel / @wealthion
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#fed #debt #recession
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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.

[@Wealthion]

PURCHASE THE REPLAY of Wealthion's online conference from 3.18.23 at wealthion.com/conference

[@trock6921]

This has got to be the best financial channel on KZbin. Keep up the good work entire Wealthion team!

[@theinflationsituation8870]

100% ✌

[@10tenman10]

We want more Lynn Alden; she's great and very insightful.

[@vitalsigns6403]

Take a drink for how many times you hear “liquidity” 😂

[@Avarua59]

Had to quit after my liver collapsed. 😂

[@vitalsigns6403]

@@Avarua59 🤙🏻😂same here!

[@erangurung4622]

Lyn is probably one of the best macroeconomics researchers. Love her work at lyn alden Investment strategy.

[@donkykon2094]

@@howibdo6849 duddet

[@davisutton1]

@@howibdo6849 You are one of those who'll be distracted by a squirrel, while the world burns. Say it with me ''Look, there's a squirrel.''

[@jc4evur661]

@@howibdo6849 I've known men with the name Lynn...now I'm confused

[@stevemartyn3138]

Sounds like you track her predictions carefully. What is her accuracy track record? Any particular insight that allowed you to make a lot of money? I'm looking for a few experts worth paying subscription fees for their materials.

[@trenegade5441]

​@@stevemartyn3138, Lyn's premium service is $25 a month or $199 for the year. She even offers a money back guarantee within the first two weeks. Most people I know spend more money than that every year on Superbowl squares; myself included. For anyone actually managing and risking enough capital to be concerned about not only losing it, but maximizing it's potential, her advice is worth every penny.

[@howardglenmartinez4473]

Lyn Alden is a financial advisor extraordinaire. She is my hero! Thank you Lyn from the bottom of my heart.

[@howardglenmartinez4473]

Wonderful show! Beautiful guest! Handsome host!

[@ThunderStruck94660]

Lyn is hot.

[@spiritofgoldfish]

Look for, "banks no longer need reserves". The Reserve Requirement is currently zero as of January 30, 2023. As such, there is no requirement that banks keep any portion of customer deposits on hand. Essentially, the Fed has removed the reserve requirement.

[@utpharmboy2006]

part of the cbdc setup

[@stevenil8208]

Thats just crazy! Expecting the FIDC to save the day? "The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. And you don’t have to purchase deposit insurance. If you open a deposit account in an FDIC-insured bank, you are automatically covered." Maybe they acknowledge that a 0% reserve is as good as a 5% reserve.

[@the8thgable]

Solid interview. Can't wait for part 2! 👍

[@Jeff__M]

Dude Adam. You are seriously making this channel great. Lyn Alden was amazing! And you literally made my month by getting Piepenburg on! I’ve been the one bugging you about it. Thank you so much! This channel is the BEST! 👏

[@jamesderoc6717]

when piepenburg?

[@Jeff__M]

@@jamesderoc6717 idk but he said that piepenburg agreed to an interview!

[@Wealthion]

Next week

[@jamesderoc6717]

@@Jeff__M his recommendations lack nuance 'buy physical gold" but his critique of the global monetary system is razor sharp

[@360camera]

I'm a simple man: when I see Lyn is invited, I watch, listen and take notes!

[@joey9562]

Me too!👍🏼

[@mattanderson6672]

Another brilliant interview with Lyn!! Love her, she's one of my fave gusts, thanks for having her on!

[@bretgreen5314]

Adam, good one; always love seeing Lyn on your show. What I think she is describing here is the Modern Business Cycle: fiscal-driven inflation, FED-driven recession, fiscal-driven inflation, FED-driven recession and so forth and so on. . .

[@alanmrsic893]

Great stuff, thanks again!

[@mikeherrera5302]

Sweet! This is gonna be a good one!

[@MunnyLerner]

Thank you Wealthion/Adam and thank you Lyn!! Really good stuff and it really helps someone like me struggling to put the pieces together.

[@margator1036]

Inflation at 6%, bonds at 3.5 to 4 %, still a negative real return. 7 1/2 % for even a small real return . 2% inflation sounds like a fantasy.

[@utpharmboy2006]

inflation is not at 6%. those are rearview numbers. fednow has it at 5.2% for March and dropping. once the credit crunch hits there might be a short bout, or longer, of deflation.

[@cwcobo]

I like hearing from Lyn, she is smart, insightful, and plain spoken. Thanks to Wealthiion for bring Lyn to us.

[@Emilyleestrong]

Lyn ❤ one of my favorites macro analyst 🙏

[@GMCG-tf1wq]

Hi. Can you recommend any other macro analysts you like? Thanks!

[@Emilyleestrong]

Jim Bianco and Luke Gromen.

[@Trading_Nerd]

Great interview!!!

[@087RR]

As always, excellent interview 🙏🏻

[@cathypaz3555]

Thanks for information.

[@michaelpetrus19]

thank you

[@ddprepper5227]

Excellent report

[@jmcmob608]

Thank you very much...

[@ccee7018]

Great discussion

[@journalofstitchery9584]

Excellent! I agree lower the debt national, corporate and personal.

[@somehacker9031]

I don't comment often, but must here as this was GREAT. I want to make two points. First is something super significant Lyn said. I say it's significant because it recently came up EXACTLY from a guest on a completely different wealth/economic show, a mainstream one. I won't link or give names so I'm not accused of advertising etc. However, the comments were related to Fed Chair Powell's Q&A for the 3/22 hike. Quoting: Guest (on inflation fight): "What about when somebody asked [Powell] would you need help from fiscal policy, and he said 'we don't want to give fiscal policy advice.' That's BS. He should be giving advice when he knows the gov. is creating inflation by running these huge deficits; it's up to Powell to tell the gov. to stop doing that, to cut government spending..." Host: "Oh, that's not going to happen." Lyn made an interestingly salient point from 36:25-37:45: Lyn: "Ironically, if most of the money creation is coming from fiscal spending raising rates doesn't even necessarily address it, because the gov. won't spend less because rates are high, and now their deficits will be bigger." The second point is Lyn said something that reminded me of a note I made privately to a friend on the topic of macro economic problems. 43:00-43:40 Lyn: "When people say they want inflation to go away what they're really saying is they want disinflationary growth. [...] If you say we're going to get inflation to go away but we'll be in a recession, people are like that's not what I want." I don't know about disinflationary growth, but what I noted was that capitalism itself is deflationary, at least over long enough periods of time. A quick example is computers and televisions. Each used to be so expensive only the rich could afford them. A single computer took up a floor of a building and even affluent homes had just one TV everyone watched. Today people carry computers in their pockets (as mobile phones) and even poor people have them. That's an example of capitalism (via competition) driving deflation, doing more but requiring less. So to the extent central planners can keep things together long enough, capitalism will bring inflation down on its own. The first question is whether or not the system can hold out long enough, but the second one is at what cost; as Adam notes it's not a seemingly positive thing to have inevitably banks that are 'too bigger to failer.'

[@cathypaz3555]

Great Information!

[@johnhagelgans5680]

Adam thanks for bringing Lyn on! "Sold their [tech companies] equity better than they sold their products". One of the most precient quotes I've ever heard about the startup world, SPACs especially!

[@marilynnschroeder4436]

Love this guest! Thank you!

[@philipgeary2132]

Adam,l Lyn is a gem.......wow

[@dc7279]

Always a great guest

[@demisrasho6890]

Thank you Adam and Lyn, appreciate you guys.

[@daveforgot127]

bigot

[@Harperrr.99]

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $120,000 bond/stock portfolio.

[@Harperrr.99]

@@kurttSchuster that's impressive! I could really use the expertise of this advisors, my portfolio has been down lately....who's the person guiding you?

[@Harperrr.99]

@@kurttSchuster Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@nauy]

Lyn Alden is amazing as always. She’s particularly insightful in this interview.

[@BatmanBoss]

Thanks buddy

[@g.waynewylie4132]

Super! Thanks!

[@peanut9051]

Thanks Adam and Lyn! Always smart analysis from Lyn.

[@anniealexander3402]

Great video!

[@Buckaroo801]

Amazing insight

[@lilmamarogue1073]

Lyn is a great researcher. ❤

[@shieh.4743]

Whoo...As someone relatively new to macroeconomics, that was an intense amount of jargon to sift through. Thank you for the questions and restatements that helped clarify the discussion.

[@williamsorensen9680]

It’s hard to fight compound interest rates at 16%😳 Prices double every 4.5 years for everything tangible 👍

[@ftmrivas3043]

She is outstanding. Love her. Thank you for all your work

[@richyrich3285]

I'm a simple man. I see Lyn, I click. I hear Lyn, I listen.

[@jeffvillanucci8682]

First off love the channel ! Where do you see mortgage rates in 2023-2024 ? Could we ever see 3-4 %again? Im buying my first home in the northeast it’s a very difficult market any insights would be appreciated.

[@jasona5806]

Bad ass episode..

[@geedoubleu641]

Hoping that a macro discussion focused on debt/currency includes at least one question about precious metals....

[@c00per69]

Great guest. Improve the supply side = get rid of tariffs

[@GlitchFinance6541]

Have Tom Luongo on. He needs to get more in the conversation!

[@christophermccormick8670]

Great segment with Lyn! Always substantiative. Cheers Adam🥃

[@konigvonpreuen8065]

Love hearing Lyn's take!

[@hoosharp]

Thank You, Lyn is the best at deep analyzing markets!

[@supercecchi]

Viva Lyn Alden

[@massonh7476]

Great … LYN! 👌 We missed her at Wealthion!

[@mrrazr8079]

Thank you very much Lyn for your insight, much appreciated!

[@nwpete]

Sounds like it's possible that yields might shoot up after the Debt Ceiling is raised despite the recessionary positioning by investors in bonds.

[@sapnarockybhatia2336]

Lyn is AI without the “A”. Pure Intelligence!

[@hagengocht3891]

Yes the hold music is sad…

[@JonasBlom]

Great, will watch anything with Lyn Alden thanks Adam.

[@madelineinfantino60]

Yes please, more Lyn Alden!

[@LL-tv9xc]

Lyn, terrific as usual. Thank you.

[@siferd18]

Great informative video, I love listening to Lyn she is amazing! Keep up the great content!

[@brockdez1259]

Lynn has a brilliant mind!!

[@gayraw]

Great Insight

[@meetarlesa]

Lyn explains with clarity backed by historical facts. She’s very wise to put the puzzles together and can interpret market conditions to help us decide what to expect and what could we do next 🙏 to survive the ripple effect of financial recession 💥.

[@tonequin4562]

Finally, someone incorporating the debt ceiling into the liquidity forecast

[@glennmcgowan8120]

Smart lady

[@jamesrobertson504]

Early in the interview, Adam and Lynn both agreed that the debt ceiling will be raised-eventually. I hope so, but am concerned that both sides might not "blink" this time around, given the current politics in Washington where compromise appears to be much more difficult than in past debt ceiling situations-particularly in the House of Representatives. So while I agree with "eventually", I am concerned about the possibility we might get a technical default before the debt ceiling is raised. That might have longer term implications in the bond market.

[@guestguest747]

I'm with you. I have been for months & months. I keep telling people, there are three reps in Congress who made McCarthy go 15 votes to get Speaker. Problem is, I'm not sure how to best position myself (though I have made some money moves.)

[@dameongeppetto]

The representatives using the debt ceiling as leverage are being foolish - it isn't leverage. Last time the GOP forced a crisis, it backfired on them. It will backfire on them again. There is no reason for the Democrats to blink. They want the GOP to act like irrational crazies trying to destroy the US (because they don't want to do anything but pretend to lead). It is good politics for them to stand their ground and there is zero chance the public blames the party that refuses to back down to blackmail. The GOP have played themselves into a no win situation, again, by their own misreading of public sentiment about PAYING YOUR BILLS.

[@brandonklosterman2978]

Lyn is the best! Very happy she addressed the reverse repo market. It seems like the 2.2 trillion sitting in that facility has been forgotten lately. The Fed surely hasn't forgotten they have that bit of cash there if they need it.

[@jojorider812]

We Love Lynn !!! Thank You for bringing Lynn on !! Please have her back again and again and again ❤❤❤

[@joey9562]

I agree! I actually was taking down notes👍🏼👏

[@chloemaxwell2628]

Lyn Alden is my favourite of your guests by far!

[@JDvidM]

I live in fontana and I almost garentee you it was caused by incentives by the city to the builders desperately trying to get more houses. A year or two ago the state sued and stopped a bunch of warehouses that the city approved for construction. It was right at the beginning of covid and all work stopped for them for months. The lawsuit was because Fontana was building commercial but not residential properties.

[@andyash5675]

If the level of banking reserves is not enough to cover increased liquidity due to electronic banking - how can CBDC's be the solution that is proposed to fix the problem?

[@user-cg4pi5fi9u]

Great explanation of TECH companies negative evolution.

[@kathri1006]

Noone really in charge, but a little bit in charge. Pure gold.

[@timkug3783]

Adam, if you want viewers to see reactions, have the other person in a small window. The one talking would switch to the larger window. A split screen is also fine.

[@michaelmcqueen4514]

Excellent interview, Excellent guest

[@Mrayis100]

More lyn pls!!

[@cicatrace]

I see Lyn, I instantly click Like :)

[@karlson68]

Appreciate Lyn’s sharp and unique insights from a starkly realistic perspective.

[@TH-75]

A few months ago she was super bullish on bank Stocks, great Investments for the next 5 years 🤔 So Adam why did you Not ask how These Investments panned out?

[@deannahouston8801]

Love the question Adam about the banks not giving higher rates to us depositors

[@kayt9576]

I'd like to know what us prospect that SSI/SSDI REFORMS are done this year? What are the odds that there will an increase for those receiving less than $1200. monthly on SSDI?

[@johnelliott672]

Nice. Smart analysis. She referred to restaurants being in good spot several times but misses that many are still way way buried due to pandemic shutdown.

[@adamesd3699]

I will just echo everyone else and say that Lyn is excellent.

[@sulavaca]

luv lyn

[@danieliwinski8359]

Lyn Alden is awesome. Fantastic interview.

[@DaWu76]

looking forward to this liquidity crunch. every day the indices grind higher and i'm like WTF?

[@ryebread921]

Love Lynn's work. Sadly, I don't see any administration (Democrat or Republican) trying to reduce the deficit.

[@joey9562]

FACT SHEET: President Bidens Budget Cuts the Deficit by Nearly $3 Trillion Over 10 Years

[@adamseever2362]

Adam, great questions. Just learn not to say the word “um”. Be ok with short pauses while you think to make a point. Your points will be more poignant.

[@SeaforgedArtifacts]

Love her analysis and the novel comparison to the 1940/70's policies. 💚👍

[@ChrisGenXer]

Lyn Alden is just AMAZING! Absolutely brilliant! Thank you for bringing her on again 😊

[@unaldurmaz250]

Thing about debt limit is there is no limit okay.

[@eldareldar7174]

Why have not smaller banks already going into foreclosure by the FDIC?

[@brianoleson9224]

there is problems in residential housing to its not immune this time . western states are already seeing biggest price declines outside 2008 since the 1930s so why hide it ?

[@Reflect50]

Thank you as always Lyn!!! I love hearing your words of knowledge!

[@erhardtharris8727]

"Too big-ger to fail-er" Is that like the early '90's rap song "Too legit to quit"? Well, it is frustrating to see the wicked prosper.

[@byronfuentes1281]

Really enjoyed Lyn capitulating on raising debt limits. McCarthy may have a alternative solution no more unfunded funny money

[@byronfuentes1281]

Gold bug