Macroscopic Podcast Lyn Alden: Can The US Dollar Survive The Greatest Rebalancing of the Century?
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May 15, 2025 
Lyn Alden, an investment strategist and financial analyst, discusses the unraveling U.S. monetary system. She explains how trade deficits have weakened America's industrial base and critiques the so-called "exorbitant privilege" of the dollar. The conversation touches on Trump’s flawed trade policies, the parallels to the 1985 Plaza Accord, and China's aim for a stable currency. Alden also reflects on the rise of gold and Bitcoin as vital reserve assets and warns of potential turmoil in bond markets, suggesting a shift towards a multipolar monetary future.
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Decade of Economic Realignment
- The 2020s mark an acceleration of the global economic realignment rather than a single event.
- Multiple shocks like the pandemic and geopolitical conflicts catalyze this long-developing shift eastward.
Trade Deficits Undermine U.S. Industry
- The U.S. trade deficits over decades overvalue the dollar, weakening U.S. manufacturing competitiveness.
- This structural imbalance benefits U.S. financial markets but hollows the industrial base, fueling political tensions.
Trump's Trade Strategy Flawed
- Trump's trade strategy aims to address trade deficits but suffers from rushed implementation and flawed execution.
- The trade dispute is a first step in shifting away from dollar dominance, but its full impact remains uncertain.