Forward Guidance Lyn Alden: The Monetary Order Is Broken
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Oct 5, 2023 
Lyn Alden discusses the recent bond market meltdown and explains why our monetary order is broken. They explore the pros and cons of hard money and how Bitcoin could provide a solution. They also touch on topics such as the risks of buying bonds, the state of the US economy, commercial real estate, and the lack of transparency in fiat money.
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What is Money?
- Money can be seen as a ledger, either managed by centralized institutions like central banks or by nature through commodity scarcity.
- Commodity money relies on physical possession, while credit-based systems rely on record-keeping and trust.
Why Money is Broken
- The telegraph's adoption accelerated commerce beyond the speed of physical commodities, necessitating centralized and abstract money.
- This shift led to the current system's inefficiencies, hindering developing countries' growth and creating monetary instability.
Golden Age of Money
- Lyn Alden identifies the Renaissance and pre-telegraph 1800s as 'golden ages' for money due to relative soundness and human flourishing.
- She acknowledges other societal shortcomings during these periods, particularly limited energy availability.