The Bitcoin Standard Podcast 277. Lyn Alden Nothing Stops This Train
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Jun 10, 2025 
Lyn Alden, author of Broken Money and expert in macroeconomic analysis, dives into the current U.S. fiscal situation and the relevance of Bitcoin. She highlights the lasting impact of pandemic-era deficits and their inflationary effects. The discussion also covers rising interest rates and their implications for the aging population's economic influence. Alden examines Tether's role in global finance and Bitcoin's potential as an alternative currency amidst geopolitical tensions, urging a reevaluation of traditional economic strategies.
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Structural Drivers of Deficits
- Structural issues like demographics, defense spending, and healthcare costs exacerbate US fiscal pressures.
- These trends make it nearly impossible for the US to reduce deficits meaningfully in the near term.
Interest Rates Affect Debt and Assets
- The Fed can suppress interest rates to manage debt but only if productivity supports it.
- Low rates favor scarce assets like Bitcoin and gold, while high rates raise debt costs, both dynamics fuel certain asset classes.
Devaluation Is a Form of Default
- Developed countries rarely default on debts denominated in their own currency; they usually devalue to reduce real debt burden.
- Debt cycles move from private to public sectors until default or devaluation becomes the only option.
