Supply Shock The Rise Of Fiscal Dominance | Lyn Alden
19 snips
Jul 24, 2024 
Financial analyst Lyn Alden discusses the rise of fiscal dominance, impact of Bitcoin as a reserve asset, election effects on markets, and potential asset classes performance in the next months.
AI Snips
Chapters
Transcript
Episode notes
US Muted Rate Hikes Explained
- The US rate hiking cycle was muted due to long-duration fixed-rate debt held by homeowners and corporations.
- Rate hikes increased government deficits, which offset some tightening impacts on the private sector.
Consumer Rotation and Economic Slowdown
- Consumer spending has rotated from goods to services post-lockdowns, supported mainly by wealthier groups.
- Manufacturing recession and commercial real estate weakness contrast with a somewhat resilient consumer sector.
Recession Less Likely Amid Fiscal Deficits
- Due to large fiscal deficits, a traditional recession is unlikely but real-term economic struggles may occur.
- Nominal GDP may remain decent while real purchasing power weakens, affecting quality of life.