Thoughtful Money with Adam Taggart Lyn Alden: Can Anything Stop The Runaway Train Of Fiscal Deficits?
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Feb 6, 2025 
Lyn Alden, a renowned analyst known for her insights into fiscal deficits, joins the discussion to dissect the implications of ongoing government spending. She argues that current fiscal deficits are here to stay, shaping economic growth and asset prices, including gold and Bitcoin. Alden explores the interactions between increased liquidity and market volatility, offering strategies for investors to navigate potential downturns. She also delves into how fiscal policies could affect Bitcoin's performance and the speculative nature of a U.S. sovereign wealth fund on various asset classes.
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Return of Volatility
- Lyn Alden characterizes the macro environment of the past two years as "boring" due to a stable liquidity environment.
- The new administration brings uncertainty and volatility back to currency pairs and asset prices.
Liquidity Dynamics
- Treasury actions, like issuing T-bills, offset the Fed's liquidity drain, acting like "extra QE".
- This dynamic created a stable liquidity environment, but potential changes are on the horizon.
Heightened Risks
- Heightened risk of negative impacts on asset prices due to potential liquidity shifts and policy changes exists.
- Investors should exercise more caution and expect bumps in the road.