The Global Financial System is Broken with Lyn Alden

Interview recorded - 12th of February, 2024
On this episode of the WTFinance I had the pleasure of speaking with Lyn Alden. Lyn is one of the foremost macro strategists, Founder of Lyn Alden Investment Strategy & author of the book “Broken Money: Why Our Financial System is Failing Us and How We Can Make it Better”.
Buy the book here - www.amazon.co.uk/Broken-Money...
During this conversation we spoke about what Lyn is currently seeing in the macro environment, the push and pull of fiscal & monetary policies, why stocks are at all-time highs, whether we could be moving into a crack-up boom scenario and more!
0:00 - Introduction
1:20 - What is Lyn seeing in Macro?
4:55 - Push and Pull of Fiscal & Monetary policy
8:00 - What prevented liquidity crunch last year?
10:35 - What others tools do they have for liquidity?
12:26 - Future liquidity scenarios?
15:40 - Reducing interest rates while continuing QT?
17:16 - Why is the stock market at all time highs?
19:09 - What assets to perform?
21:45 - Crack up boom?
22:48 - Can US continue deficits?
25:05 - Could the US move to austerity?
28:10 - Deflation vs higher inflation
29:50 - Why is our financial system failing us?
33:50 - CBDC a risk?
37:10 - What impact does higher energy costs have on blockchains?
39:29 - Outlook for Crypto & Bitcoin in 2024?
42:40 - One message to takeaway from our conversation?
Lyn runs an investment research service for both retail and institutional investors at LynAlden.com. Her focus is on fundamental investing with a global macro overlay, with an emphasis on equities, currencies, commodities, and digital assets.
Lyn has also worked for over a decade in the aviation industry in a range of roles, starting as an electronics engineer and moving into project and facility management, and engineering finance. Eventually she became the head engineer and head of technical procurement for the facility, before retiring in my 30s.
Lyn has a bachelor's in electronics engineering and a master's in engineering management, with a focus on engineering economics and financial modelling.
Lyn Alden -
Website - www.lynalden.com/
LinkedIn - / lynalden
Twitter - lynaldencontact?l...
WTFinance -
Instagram - / wtfinancee
Spotify - open.spotify.com/show/67rpmjG...
iTunes - podcasts.apple.com/us/podcast...
Twitter - / anthonyfatseas
Thumbnail picture from - www.dmagazine.com/publication...

[@WTFinancepodcast]

Do you agree with Lyn that the financial system is broken and what can we do to fix it?

[@olddirtybastardgarage]

No thanks HE is behind, the conspiracy folk have been screaming this a year ago. No more trans dudes thanks.

[@mikemcglauflin8985]

Kinda. The story remains the same throughout history. Centralization and goverment may intend to fix but instead become a total disaster. Why?

[@WTFinancepodcast]

@@mikemcglauflin8985 why do you think so?

[@michaelschliwa1096]

Can someone in America please just let Lyn run the economy?

[@WTFinancepodcast]

Agreed! Would be far better than the current people they have in charge. Thanks for watching.

[@clarencehoover6748]

That would be great, but mathematically, the debt-based fiat currency system must fail. There is no way out. A default must occur, whether implicitly or explicitly.

[@lucylovitt9583]

That's been the plan for decades and all the Presidents have known it. ​@@clarencehoover6748

[@LibertarianRF]

Our government is run by crazy mass murderers

[@opentrunk]

Run the economy? I'd put her in charge of the whole fucking universe.

[@TonyBaloz-0127]

Good Interview giving Lyn space to develop her thoughts. Lyn is fantastic and reads better what seems to be happening than most. Fiscal dominance is the hidden game. Most commentators expecting a recession that never comes. This is likely a new but different balance point. Until it cannot hold any more. Thank you Lyn and WTFinance.

[@haze1123]

Lyn is the best. Thanks!

[@WTFinancepodcast]

Agreed, she is great! Thanks for watching, appreciate the support!

[@samcan1000]

I’m sorry we can’t do that in the United States because we have too many stupid voters, and we are on our way down. Look to China, India, and Russia to go up. Like I said, we’re on our way down, down, down. This is due to the liberal Democrats.

[@AlexanderLHawkins]

Buy her book! An amazing look at the history of money and a sober look at our failing fiat system. Thanks for having her on!

[@simonstadlmair2293]

I have just discovered this great analyst Lyn Alden. Her deep insights in finance and economy have impressed me a lot. A real jewel! Greetings from Germany!

[@amitinvesting]

Awesome pod!!

[@WTFinancepodcast]

Thanks Amit, appreciate it! Have been loving your channel recently as well, many of the stocks flying currently.

[@detectiveofmoneypolitics]

Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊

[@WTFinancepodcast]

Thanks for watching!

[@josephspurgeon3668]

Lynn is a smart guy

[@davidanderson7460]

Is Lynn a guy ? I never really knew

[@2butnot277]

Nice touches on the back wall, Lyn. Haven't seen you interviewed at home for months. Thank you, many times, for your insights and advice. Best wishes!

[@WTFinancepodcast]

Thanks for watching! Glad you were able to get some value from it.

[@JacobFigueroa-kp4io]

Xeventy's presale got me hooked - the coolest way to be part of a groundbreaking project. Let's go!

[@Phedrus4Quality]

Lyn is great. Constructive criticism: The interviewer could be more dynamic.

[@WTFinancepodcast]

Thanks for watching and the feedback. Agree about Lyn, she is great! In terms of being more dynamic, what would you suggest?

[@ghannom]

​@@WTFinancepodcast zoom out brother, right now your movement is too short range, gives it a robotic feel to the audience, show your hands to help you seem more expressive. Just a tip from an assistant director. Thanks for the video by the way.

[@WTFinancepodcast]

@@ghannom thanks for the feedback! Think I need a smaller lens to zoom out further. Will put it on the shopping list!

[@edawg654]

Just read her book and buy Bitcoin

[@martinross6416]

Stocks are mostly decoupled from the actual economy. We are in a crack up boom and nothing stops this train until we go off the tracks completely.

[@WTFinancepodcast]

Definitely seems to be a massive divide! But to be fair, the economy has been growing a lot faster that I thought it would.

[@JBruv1]

Lyn Alden is a fresh breath of sanity. Balanced and thoughtful. Great questions and interview in general thanks.

[@goldensilver793]

Thanks WT....

[@WTFinancepodcast]

No problem, thanks for watching. Appreciate the support.

[@charlesyoung1464]

What's needed to make tour programmes more interesting would be to invite 2 speakers and have contradictory exchanges....Lyn Alden and the contrarian investor, David Hunter for example!!

[@user-99.99]

Lyn is the best!

[@JohnWilliams-wz9vk]

What we know .is that..we don't .

[@gaeldesmontagnesnoires1711]

Amazing

[@WTFinancepodcast]

Thanks for watching!

[@JohnDaniels]

Mr. Powell needs to stay strong and keep interest rates higher for longer and keep running off that balance sheet until he gets to zero and return the purchasing power that has been "borrowed".

[@emailsender7139]

They need to be higher, Historically still low.

[@vincentmurphy9252]

They needed to go to 6.5 when they stoped at 5

[@vincentmurphy9252]

Take everyone on KZbin no one knows the future and yo cannot go back in time and compare because what we have now is written in science fiction

[@ksaggars5016]

They can't. We can't afford above 2% real rates. Raising rates makes the dollar stronger. We are heading for more printing which I agree don't help but we stall growth by Raising rates any further and it won't matter

[@infraaa_]

yup, out true interest costs are already over 100% of tax receipts. Interest alone is 25% of tax receipts, leaving out interest/pay-go on SS/Medicare. Debt to GDP of 120% with 7%/GDP deficits. $10T to be refinanced this year, so the interest rate has a huge effect. I'm honestly shocked he hasn't cut yet (obviously I agree the FFR is still too low) because rates at these levels will send us into a doom loop rather quickly

[@KenCaniato]

Lots of mobey for ishell, ukee and tiawhat

[@George-Aguilar]

Lyn. Please get the highest quality microphone 🎤 you can find. You voice needs to be heard in the highest quality

[@WTFinancepodcast]

Thanks for watching and agree!

[@LittleOrla]

The financial system is working exactly as planned. Time for the casino to pull in all the chips. We just didn't understand that this was the plan all along.

[@patrickobrien2092]

Lyn is looking fine:)

[@ceasarwright7567]

You into men ?

[@miniminamanmina3715]

The system is not so much broken as it is evolved into an element only for a few specialists , to fix it rule of law and ethics need to be re legislated back into the mainstream. Or allow all the senators and congressman who become multi millionaires after about ten years to share their inside information, and allow the public into the privileged circle .

[@billdowney1487]

Nailed it

[@SkyPilot54]

Milton Friedman That days everything that needs to be said

[@ramonedetroitguam6075]

i like 💞 she has the feminine butterfly 🦋 behind her....

[@LUIS-633BANK]

👨🏽‍💻

[@WTFinancepodcast]

Thanks for watching, appreciate it!

[@tomkarnes69]

Broken, humm, wait I know let's declare a bank holiday, only a select few reopen, but not your bank, no problem, all your savings are wiped out but your mortgage and auto loans stay on the books at your new bank. This is exactly what they did in 1933, coming to a theater near you

[@WTFinancepodcast]

At least we gets some days off because of those past challenges. I think with technology they try to sort everything out on the weekend and seemed to work with SVB and First Republic. Thanks for watching.

[@tomkarnes69]

No, we do not have a financial problem, we have a political problem, who gets the money for what purpose. Money is a public Monopoly, that Monopoly has been privitised and financialized for non productive purposes

[@robertjosan]

WTI going south to $60 with recession not too far out

[@WTFinancepodcast]

What would cause a $60 WTI?

[@robertjosan]

@@WTFinancepodcast loss of demand due to a hard landing recession, I think it’s going south of $35 WTI actually

[@FamilyofFour30]

Agree with everything she said with the exception of Bitcoin. I still for the life of me can’t understand why anybody thinks this is anything other than a very successful scam.

[@Permanentransitory]

Billionaires will be Trillionaires then Gazillionaires

[@WTFinancepodcast]

At least we’ll all be millionaires!

[@Doug-zl8nb]

Wild wild west hang on

[@WTFinancepodcast]

You think it will be a rough ride?

[@ramsineivaz]

Dear Lynn I have a lot of respect for you. But I think you should disclose how much of your asset is in crypto. It should be mandatory for anyone promoting an asset. Do not you think so?

[@WTFinancepodcast]

Is that because you think she is holding Crypto or she isn't? I think we are allowed opinions on assets, even if we don't own them. Thanks for watching, appreciate the support!

[@timkrouse345]

You can find all her investment allocations on her website.

[@tricuswang6737]

She does have a paid service $199/year , where I believe you can see all her investment accounts , buy , sell and values.

[@adamegrafik]

@@WTFinancepodcast She is moderate in her opinion except for bitcoin which could be interpreted as advice. By knowing the context, one would have option to decide if her strong opinion might be influenced by her goals. Nothing wrong by having an opinion, but would be nice to know the context.

[@hooksx]

I think at this point Lynn is just talking her book. She has big investments in Bitcoin and other cryptocurrencies so she's just rooting for a downfall of traditional markets at this point.

[@lucylovitt9583]

Don't be so silly. THINK about what you said - then think about the reality

[@HakWilliams]

He's hot

[@JonathanSebastian407]

Plz leave the crypto people on Kitco News 😂

[@bokijacovic5689]

The interviewer asked nothing interesting and responds with nothing interesting. Just get a proper job mate this channel won’t last

[@WTFinancepodcast]

Thanks for watching and the feedback! Lucky for me I have a proper job 😅 Any constructive feedback you have to improve?

[@nickyRavioli]

Is this a guy or gal talking ?

[@billdowney1487]

I thought of that ----------- but in the end --------- it's the CONTENT coming out of the mouth that impressed me.

[@thomaskelly6472]

Is Lynn growing horns?

[@polishpal7151]

Bad english of the host

[@TN-ru4jy]

Lyn has been wrong for years now and on the wrong side of the trade. Nothing she said has materialized. She invests on emotions and plays alot of hypotheticals

[@billdowney1487]

Can you give examples ?

[@TN-ru4jy]

@@billdowney1487 just watch any of her interviews this year, she openly admits she’s been wrong and says it herself. She’s still young and fairly a rookie when it comes to markets. The good thing is she actually acknowledges it.

[@jphone9200]

this is fake news its not broken works fine

[@WTFinancepodcast]

It works until it doesn't, the challenge is how long can governments continue relying on debt to run.

[@lucylovitt9583]

Naive viewpoint, very very naive.

[@nadie2795]

Gold was an accepted store of value; but it's hard to physically move. Fiat was adopted to solve it; but the huge number of currencies was another stumbling block. Crypto has all the advantage of gold and fiat, plus there's no arguing over the code, so no fiat differences can dominant. That's why every country hates it.

[@WTFinancepodcast]

As Lyn says, it is the lack of control that they hate. Would probably be disastrous for countries like Egypt who don't export and struggle with foreign reserves as it is. More about giving monetary control back to the people.

[@billdowney1487]

@@WTFinancepodcast - I guess i'm old school --- i want to hold that asset in my hand. I can't see Bitcoin --- hold it ------- and if the internet is taken over or shut down --------------- then what happens ? And forget no traceability ---------------- there is no hiding --- EXCEPT CASH -- thats what made it so big.

[@adamegrafik]

@@billdowney1487In case of huge crisis or downfall of society, common value for exchange would be gold as it's most universal to compare with. But this is just speculation on what would happen when world would fall, and nobody want's to bet on that I hope :).

[@billdowney1487]

@@adamegrafik --- i totally agree

[@raymondpaul2515]

MAcR0 -vs_MicR0 = Z'(e)TA FUNcTi0NS;Z' = c