Thoughtful Money with Adam Taggart Our Addiction To Deficit Spending Is The Greatest Threat To Our Future Prosperity | Lyn Alden
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Sep 28, 2025 
In this enlightening discussion, investment strategist Lyn Alden, author of "Broken Money," unpacks the alarming trend of fiscal dominance. She dissects how current deficit spending compares to post-COVID levels, the impact on inflation, and the intricacies of major sectors like Social Security and defense. Alden also contemplates the challenges of addressing entitlement reform, the risks of a looming recession, and the benefits of certain investments in today's economy, all while emphasizing the need for sound monetary policies.
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Tariffs Tend To Tax Americans
- Tariffs mainly function as a tax on American consumers because foreign sellers rarely absorb the cost.
- Tariffs can slow imports modestly but complicate long-term corporate capex decisions and trade dynamics.
Yield Control Has Real Costs
- The Fed can try yield-curve control to lower borrowing costs, but that risks central bank independence and inflationary pressure.
- There are no painless fixes; yield control trades independence for temporary debt service relief.
Trade Deficits Recycle Capital Into US Assets
- US trade deficits supply excess dollars globally, which foreign holders recycle back into US assets, especially equities.
- That recycling creates a passive, structural bid into US markets and props up fiscal leeway at home.
