The Great Simplification with Nate Hagens Nothing Can Stop This Train: Our Financial Predicament From a Systems Perspective with Lyn Alden
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Jul 30, 2025 
Lyn Alden, an independent analyst and founder of Lyn Alden Investment Strategy, dives into the complex relationship between money, debt, and energy in today’s financial landscape. She discusses the failures of traditional economic theories like Keynesianism in addressing current realities. Lyn explores how cryptocurrencies like Bitcoin and Stablecoins are reshaping finance, offering alternatives amid rising debt levels. The conversation also highlights potential job market disruptions caused by AI and the importance of understanding global energy dynamics for future economic stability.
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The "Train" of Fiscal Deficits
- The "train" represents the unstoppable increase in U.S. fiscal deficits.
- Fiscal policy drives the economy now, with few ways to halt this growth in the next 5 to 10 years.
Fiscal Dominance Explained
- Fiscal dominance occurs when public debt exceeds around 100% of GDP and interest expenses worsen deficits.
- Raising interest rates then increases deficits more than it slows private sector credit, changing credit creation dynamics.
Shift from Monetary to Fiscal Dominance
- The shift from private to public sector debt creation has accelerated since the 2010s.
- Monetary dominance (banks creating money) is replaced by fiscal dominance, resembling conditions seen in the 1930s and 1940s.
